Potential OptionsRefinementImplementation Operations & Maintenance Step 4: Implementation 3 Purpose: Contract for, realize physical construction of project Tasks: Finalize project agreements Finalize vendor contracting process Finalize preconstruction tasks Realize construction and equipment installation Realize interconnection Realize project commissioning leading to commercial operations Output: Completed project (operation)
Step 4: Implementation 1.Financial closing (if applicable) 2.Contract execution 3.Construction of project Contract oversight/quality control Change control 4.Commissioning Testing and verification Interconnection verification (utility) 4 Variable effort relative to project scale
1. Financial Closing (if applicable) The process of completing all project-related financial transactions, finalizing and closing the project financial accounts, disposing of project assets, and releasing the work site. 5 A few key steps: Establish and communicate final date for all financial transactions and account closings well before closing Verify all items from the Statement of Work have been completed before disbursing final payments Collect all financial records and verify all financial obligations have been satisfied Close all financial accounts Transfer or dispose of assets according to the acquisition plan
2. Contract Execution Verify contract documentation Obtain contract approvals Book the contract Transfer project responsibility to project manager 6
3. Construction of Project Project developer orders equipment and begins construction or installation Construction manager coordinates work of various trades Close coordination with tenants if building is occupied Frequent communication between all parties to minimize possible issues 7
4. Commissioning 8 Planning Determine objectives and strategies Assemble project team Compile and review building and equipment documentation Investigation Conduct site assessment Develop functional test and monitoring plans Analyze test results Compile master list of deficiencies and recommend improvements Implementation Accepted recommendations are put in place Repairs and improvements Retesting and re-monitoring Fine-tuning Hand-off and Integration Final documentation of commissioning effort is presented Develop and present plan for future commissioning efforts including recommended procedures for specific equipment, frequency of testing, analysis of results, periodic reporting, key players, and budget requirements
Potential OptionsRefinementImplementation Operations & Maintenance Step 4: Hypothetical Community Example – Outputs 9 Photo from Byers and Renier Construction, NREL Completed and operating project New ownership organization completed (if needed) Project Implementation Success Project generating electricity Project developed within budget
Project Risk – Facility-Scale Post Step 4 10 RisksRisk Assessment Post Step 4 Development Loss/waste of development resources Medium; now with more assurance of success Site Improper orientation or project affected by shade Low; some may be assumed by host Inadequate foundation or structural integrity Low; developer assessed Site control for challenges for safety/security purposes Low; some assumed by host Permitting Tribe-adopted codes and permitting challenges Low; permitting completed Utility interconnection challenges None Finance Capital constraints None; project constructed/commissioned Incentive unavailability or insufficiency Low to none; allocated to developer Construction/ Completion Engineering, procurement, and construction difficulties None; EPC complete Cost overruns None; construction complete Schedule overruns None; construction complete Operating Output shortfall from expectedLow; allocated to owner Technology O&M failureLow; allocated to owner or O&M contractor Sources: Adapted from Holland & Hart, RE Project Development & Finance & Infocast, Advanced RE Project Finance & Analysis NOTE: Underlining signifies that the risk assessment outcome changes during the step at hand.
Project Risk – Community-Scale Post Step 4 11 Risks Risk Assessment Post Step 4 Development Poor or no renewable energy resource assessment Not identifying all possible costs Unrealistic estimation of all costs Incorrect estimation of long-term “community” energy use Utility rules and ability to offset use with centralized production Low; site picked Low; detailed model Low; final projection None; executed Site Structural (e.g. rooftop solar, wind loading, soil conditions) Installation safety (e.g., wind tower, hazard for adjacent sites) Site control for safety/security purposes None; addressed Low; site secure Permitting Tribe-adopted codes and permitting requirements Utility interconnection requirements Low; complete None; complete Finance Capital availability Incentive availability risk None; finalized Construction/ Completion EPC difficulties Cost overruns Schedule None; contracted None; construction complete Operating Output shortfall from expected Technology O&M Assumed low, mitigable or allocatable Sources: Adapted from Holland & Hart, RE Project Development & Finance & Infocast, Advanced RE Project Finance & Analysis *NOTE: Underlining signifies that the risk assessment outcome changes during the step at hand.