Session 3: Project Development Agenda The Voice of a Technologist Utility Project Development Reliability Concepts Residential Project Development Homework

Utility Project Development Project ProfitInvestment Technology Market Demand Risk Performance Schedule Cost

Project Development Organization Project CompanyEquity PartnersLenders EPC ContractorO&M ContractorFuel Supplier Offtaker Funding & Security AgreementsEquity Support Agreements EPC Contract O&M Contract Fuel Supply Agreement Power Purchase Agreement Tripartite Agreements

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