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Session 3: Project Development. Agenda The Voice of a Technologist Utility Project Development Reliability Concepts Residential Project Development Homework. Utility Project Development. Market Demand. Technology. Project. Investment. Profit. Risk Performance Schedule Cost.
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Session 3: Project Development Agenda The Voice of a Technologist Utility Project Development Reliability Concepts Residential Project Development Homework
Utility Project Development Market Demand Technology Project Investment Profit • Risk • Performance • Schedule • Cost
Project Development Organization Equity Support Agreements Funding & Security Agreements Equity Partners Project Company Lenders EPC Contract O&M Contract Fuel SupplyAgreement Power PurchaseAgreement EPC Contractor O&M Contractor Fuel Supplier Offtaker TripartiteAgreements
Project Company Information 1)Developer/Sponsor/Promoter Profile 2)Project status 3)Economics 4)Engineering/Feasibility Study 5)Equipment 6)Engineering, Procurement, and Construction (EPC) 7)Operation and Maintenance 8)Regulatory, legal 9)Taxation 10)Foreign Exchange 11)Insurance 12)Financing 13)Comprehensive risk analysis: technical or economic 14)Dispute resolution
1)Developer/Sponsor/Promoter Profile 2)Project status a) Status of key agreements b) Schedule to complete development c) Support for project 3)Economics a) Financial projections—Pro Forma b) Documentation of power pricing c) Documentation of operating expenses d) Disposition/refinancing/transfer
5)Engineering/Feasibility Study a)Site suitability b)Fuel procurement c)Proposed design, technology, cost d)Fuel and electrical interconnection e)Environmental impact, need for study, exemption f)Power purchaser load profile g)Water supply and discharge h)Ash disposal for solid fuel projects i)Emissions controls, options, cost j)Maintenance schedule, overhauls, spares k)Other site mitigation
6)Equipment a)Operational characteristics • i)History in power application • ii)Efficiency • iii)Reliability • iv)Availability • v)Environmental b)Cost, payment schedule, delivery deposits c)Guarantees, creditworthiness for guarantees d)Financing considerations, export credit, vendor e)Technology, suitability for remote service
8)Engineering, Procurement, and Construction (EPC) a)EPC contractor: b)Contract terms: c)Guarantees, bonuses, penalties d)Insurance, retainage e)Construction schedule, penalties, damages f)Performance testing • i)Output • ii)Heat Rate • iii)Availability • iv)Duration of test, standards, derating • v)Warranty period g)Start-up, training