Will EPC contracts provide for the handover of a solar facility?
EPC Contracts will not provide for the handover of the solar facility to the Project Company, and the PPA will not become effective until all commissioning and reliability trialling has been successfully completed.
Should you choose an EPC contract for a solar project?
Given the significant monetary value of EPC Contracts, and the potential adverse consequences if problems occur during construction, the lowest price should not be the only factor used when selecting a Contractor. As noted earlier, an EPC Contract is one of a suite of agreements necessary to develop a solar project.
Who are EPC Partners – Summit renewables & Green Energy (Engineers)?
EPC Partners – Summit Renewables & Green Energy (Engineers) PowerX – a pioneer in the trading of renewable energy in South Africa with the ability through its NERSA issued trading license (TR01/ELC/09) to purchase clean and green power from power / electricity generators.
What happens if the EPC contract is uncertain?
Any uncertainty in the EPC Contract may unfortunately see the Contractor liaising directly with these third parties and possibly risking the relationship of the Project Company with key influencers, customers and long-term neighbours.
What is a bankable EPC contract?
A bankable EPC Contract is a contract with a risk allocation between the Contractor and the Project Company to the satisfaction of Lenders and their credit committees.
Should a principal accept a solar facility?
Lenders will, generally speaking, be prepared to accept a solar facility that provides sufficient income to service the debt. However, in addition to covering the debt service obligations, the Principal (and the Principal’s equity sponsors) will also want to receive a return on their equity investment and satisfy the requirements of any PPA.
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