Wind Project Contract Strategies, Construction Hurdles in Developing Markets

Consultants share insights at Windpower 2015

May 21, 2015 - At the American Wind Energy Association (AWEA) Windpower 2015 Conference & Exposition on May 18-21 in Orlando, Sargent & Lundy discussed issues critical to successfully contracting and implementing wind projects in developing markets.

Contracting Strategies and Lessons Learned on International Wind Projects

Abstract— Wind power projects in developing markets tend to use a full wrap EPC contracting arrangement, as opposed to a multiple contracting arrangement that is commonly used for wind projects in the United States. Optimal contractor selection for wind projects in developing markets involves many considerations; economics, risk, and performance are examples of these. The presentation described several case studies and shared lessons learned from the projects. Based on the lessons learned and other relevant experience, the discussion offered recommendations on how to evaluate contracting approaches and aspects to consider during contractor selection.

Wind Farms Without Borders: Top 5 Best Practices When Building in Developing Markets

Abstract— Constructing wind farms in developing markets presents an entirely different set of hurdles compared to those typically seen in more mature and stable markets. It is crucial for financiers to focus their attention in the right places in order to identify construction-related issues before they adversely impact a project’s cost and schedule. Important detailed design, document control, and quality control considerations are often glossed over by inexperienced EPC Contractors. In developing countries, equipment and skilled labor may not be easily procured, and non‐market factors could result in schedule delays and cost overruns. The presentation highlighted five critical aspects of wind farm project construction that must be carefully assessed early on, providing the parameters for a successful international endeavor.