Sargent & Lundy provides insightful and proven consulting and planning services to utilities, energy companies, government agencies, lenders, investors, and others involved in the energy, industrial, and infrastructure sectors. With a deep understanding of technologies, economics, and real-world practicality, we offer a comprehensive suite of services to meet the unique needs of our clients. Based on the depth of our experience, we are a trusted resource offering clients the technical expertise and industry knowledge needed to make key financial and strategic decisions.
We offer independent engineering, early-stage developer support and owner’s engineer services, generator interconnection studies and transmission planning, long-term power supply planning, and economic and financial planning and support to meet our clients’ needs.
Due Diligence & Independent Engineering
We provide due diligence and independent engineering services for energy asset financings and transactions of all types for lenders, investors,…
We provide due diligence and independent engineering services for energy asset financings and transactions of all types for lenders, investors, asset owners, and prospective buyers. These services include availability and performance reviews, agreement technical reviews, liquidated damages reviews, assessment of financial model inputs, resource and energy yield assessments, and technical risk assessments. For projects in development, we also assess engineering, procurement, and construction (EPC) contract technical terms, construction schedules, and development plans. For existing assets, we perform condition assessments and review operations and maintenance (O&M) practices. We can provide capital expenditure projections for targeted durations of continued operation after acquisition.
Examples of due diligence services performed by Sargent & Lundy are highlighted below.
Solar
Leeward Renewable Energy | 2023 | Ohio, North Carolina | Big Plain and Oak Trail Solar Projects
In support of project financing, Leeward engaged Sargent & Lundy to perform an independent engineering review and evaluation of the Big Plain and Oak Trail solar photovoltaic (PV) projects. The goal of our review was to assess technical and commercial risks associated with the major equipment, design, resource, and energy yield, environmental and permitting requirements, and commercial agreements for the projects. Our scope of work for the independent engineering due diligence was divided into two phases.
- Phase 1: Independent engineering technical due diligence report to support investor commitment.
- Phase 2: Monthly construction monitoring from mobilization through project substantial completion.
We reviewed the technical aspects of key design, contracts, and financial documentation to determine both comprehensiveness and consistency with accepted standards in the solar PV industry. Our scope of work during the technical due diligence included:
- Site assessment.
- Key technology review (PV module, power conversion system, main power transformer, mounting system).
- System design review (array design, electrical, civil, and structural review).
- Solar resource and independent energy yield assessment.
- Environmental and permitting review.
- Equator principles review.
- Contracts and agreements review (e.g., EPC agreement, power purchase agreement, interconnection agreement, and O&M contracts).
- Financial model review.
Battery Energy Storage System
Spearmint Energy | 2022 – 2024 | 300 MWh | Texas | Revolution Battery Energy Storage System (BESS)
In support of project financing, Spearmint engaged Sargent & Lundy to perform an independent engineering review and evaluation of the Revolution BESS project. The goal of Sargent & Lundy’s review was to assess technical and commercial risks associated with the major equipment, design, use case, environmental and permitting requirements, commercial agreements, and financial modeling for the project. Sargent & Lundy reviewed the technical aspects of key design, contracts, and financial documentation to determine both comprehensiveness and consistency with accepted standards in the energy storage industry.
Sargent & Lundy’s scope of work included:
- Site assessment.
- Key technology review.
- System design review.
- BESS use case review.
- Environmental and permitting review.
- Contracts and agreements review.
- Financial model review.
Combined Cycle Power Plant
Generadora de Gatún| 2021-present | 640 MW | Panama
We performed an independent engineer review and environmental, health, and social (EHS) review to support financing for the construction of a 2x2x1 natural gas fired 640-MW (net) combined cycle power plant in Colón, Panama, utilizing GE 7FA.05 gas turbine technology. The project encompasses the construction of the power plant, substation, and a 1.6 kilometer (km) natural gas pipeline up to the terminal point with the nearby AES Costa Norte LNG Terminal, as well as a 15.1 km transmission line constructed to interconnect the power plant to the national interconnected system of Panama. Our services included review of project design, contracts, financial model inputs and performance, environmental impact assessment, compliance with International Finance Corporation (IFC) guidelines and the Equator Principles, and permits.
We are currently performing quarterly construction and environmental health and safety monitoring of the project and will also perform O&M monitoring during operations.
Distributed Energy Resources and Virtual Power Plants
U.S. Department of Energy | 2022 – Present | 568 MW
Sargent & Lundy currently serves as the independent engineering advisor to assist the U.S. Department of Energy (DOE) in the technical and engineering aspects of underwriting, structuring, negotiating, loan closing, and monitoring for Project Hestia. The Project Hestia loan applicant seeks to build and operate a virtual power plant that is a portfolio of distributed energy resources across approximately 40 U.S. states and territories. It will generate solar power, store energy, and reduce energy consumption by deploying rooftop solar as well as batteries and software (internal, consumer-facing, and grid-facing). The applicant has deployed proprietary consumer-facing software, which includes functionality intended to avoid greenhouse gas emissions by shifting energy usage to periods of low marginal operating emissions.
In support of this project, Sargent & Lundy performed due diligence focused on the following scope items:
- Site assessments.
- Technology baseline evaluation.
- Technical design assessment.
- Verification of applicant’s technical and commercial claims.
- Benchmarking against current industry practice.
- Evaluation of performance projections.
- Proposed management team assessments.
- Review of deployment plans.
- Evaluation of system developers, installation, and O&M contractor(s).
- Review of O&M plan.
- Review of equipment supply chain.
- Review of quality assurance/quality control (QA/QC).
- Evaluation of technical inputs to financial model.
- Software validation.
Manufacturing
U.S. Department of Energy | 2022 – Present
Sargent & Lundy currently serves as the independent engineering advisor to assist the DOE in the technical and engineering aspects of underwriting, structuring, negotiating, loan closing, and monitoring for next-generation zinc-bromine BESS. The project applicant seeks to build and operate a manufacturing facility capable of producing 8 gigawatt hours (GWh) of storage capability annually.
In support of this project, Sargent & Lundy performed due diligence focused on the following scope items:
- Site assessment.
- Evaluation of technology baseline.
- Technical design assessment.
- Verification of technical and commercial claims of applicant.
- Benchmarking against current industry practice.
- Evaluation of performance projections.
- Proposed management team assessment.
- Review of deployment plans.
- Evaluation of system developers, installation, and O&M contractor(s).
- Review of O&M plan.
- Review of equipment supply chain.
- Review of QA/QC.
- Evaluation of technical inputs to financial model.
Generator Interconnection & Transmission Planning
Rapidly changing dynamics in the electric grid, such as the high penetration of renewable generation and the retirement of large…
Rapidly changing dynamics in the electric grid, such as the high penetration of renewable generation and the retirement of large conventional generators, present many challenges for project developers, utilities, and system operators as they plan for generator interconnection and long-term transmission expansion. Our expertise in power system studies, transmission planning, and the generator interconnection process helps our clients navigate the challenges they face.
We perform various power system studies, including steady-state power flow and contingency analysis, reactive compensation study, transient stability analysis, short circuit, harmonics, insulation coordination, sub-synchronous resonance, and more. We utilize industry-standard software tools such as PSS/E, TARA, PSCAD, PSLF, DIgSILENT, DSATools, ASPEN, EMTP-RV, and ETAP. We also have extensive experience with the development of steady-state, transient, and dynamic facility models in PSS/E, PSLF, ASPEN, and PSCAD for submission to Regional Transmission Organizations/Independent System Operators (RTO/ISO) and utilities for interconnection of thermal, wind, solar, battery energy storage, and hybrid projects. Our typical generator interconnection and transmission planning services to project developers, utilities, and system operators include:
- Transmission scouting to evaluate multiple generator interconnection options across wide areas.
- System impact studies for targeted interconnection points.
- Generator interconnection application support across RTO/ISO regions and utilities.
- Facility design optimization studies.
- Material modification or interconnection right replacement studies.
- Power system studies for complex generation and transmission projects such as offshore wind, high-voltage direct current (HVDC), and SVC/STATCOM.
Long-Term Power Supply Planning
We have significant experience helping utilities, system operators, independent power producers, renewable energy firms, government agencies, and other organizations in…
We have significant experience helping utilities, system operators, independent power producers, renewable energy firms, government agencies, and other organizations in the electric industry navigate complicated long-term planning questions. These questions can revolve around how best to decarbonize existing generation portfolios, where and when future resources should be developed, if and when existing resources should be retired, project economics, and long-term economic outlooks.
Our long experience with a variety of different projects sets us apart as one of the premier engineering and consulting firms in the energy industry. Our clients have relied on us to provide important guidance regarding the future, which ultimately has helped us both lead our clients to successful outcomes and best position them for success over the long term.
Our long-term planning services include:
- Power supply strategies for data centers.
- Production cost modeling and market studies.
- Transmission and distribution (grid) planning.
- System flexibility studies and high renewable planning.
- Economic and financial studies.
- Decarbonization studies and analysis.
- Business case development and risk analysis.
- Advanced and emerging technology assessments.
- Cost and performance studies.
- Resource adequacy analysis.
- Integrated resource planning.
- Power supply and power system planning.
- Carbon emissions modeling and scenario analysis.
Economic & Financial Planning and Support
The success of every project requires a steadfast focus on the project’s underlying financial and economic aspects. Successful project implementation…
The success of every project requires a steadfast focus on the project’s underlying financial and economic aspects. Successful project implementation requires an understanding of and precise accounting for key project cost and revenue drivers, development of accurate economic and financial models, and a sound understanding of the technical aspects of the project. We have significant experience helping our clients navigate the economic and financial aspects for all stages of project implementation.
We offer a variety of economics and finance services that span a project’s life cycle, from existing financial model reviews and evaluation to the ground-up development of detailed pro-forma models that capture key project technical and economic drivers.
We provide the following services:
- Discounted cash flow valuations.
- Competitive procurement support and bid evaluation.
- Preparation or reviews of pro forma financial models.
- Production cost modeling and market studies.
- Depreciation and replacement cost studies.
- Cost/benefit and performance evaluations.
- Operations and maintenance cost estimating.
- Business case development and risk analysis.
- Project negotiation support.
- Integrated resource planning.
Early-Stage Developer Support and Owner’s Engineer
Our project development and owner’s engineering services include the full range of support services needed by clients to identify, evaluate,…
Our project development and owner’s engineering services include the full range of support services needed by clients to identify, evaluate, select, and implement power generation, electric grid infrastructure, and other energy industry projects. We support developers, owners, investors, and contractors in the development and implementation of projects across a wide range of technologies.
Project Development Support
Our project development support includes activities and assessments required to select and finalize project alternatives, support initial go/no-go decisions, and develop project development and planning documents. Our project development services include:
- Project feasibility evaluations.
- Site selection and environmental compliance reviews.
- Technology selection.
- Optimization studies.
- Engineering, procurement, and construction (EPC) specification and bid reviews.
- Contract negotiation assistance.
- Tariff and pro forma development.
- Constructability assessments.
- Due diligence reviews.
- Capital and operations and maintenance (O&M) cost estimates.
Owner’s Engineering Support – EPC Design Review and Implementation Support
Following the award of an EPC contract, we perform engineering design reviews and construction oversights on behalf of the owner to confirm the EPC contractor properly designs, engineers, and constructs the facility in accordance with the contract documents and industry standards with the agreed-upon cost and schedule to meet the expected project performance. Our common owner’s engineering services include:
- Major equipment procurement specifications review.
- 30%/60%/90% engineering design package reviews and design review meetings.
- Quality assurance and quality control plan review.
- Project controls support.
- On-site construction monitoring.
- Commissioning and performance testing support.
Additional Services
- Management consulting.
- Rate case support and depreciation studies.
- Advisory and strategic planning.
- Expert witness services and technical support for dispute resolution.
- Merger and acquisition (M&A) support.
- Divestment support.
- Specification, contract, and negotiation support.
- Decarbonization planning.
- Capital project planning and monitoring.
- Operation and condition assessments, plant audits.
- Cost and performance benchmarking.
- Business case development and feasibility studies.
- Certifications, testing, inspections.
- Energy efficiency and demand side services.
- Request for proposal (RFP) management and procurement support.
- Integrated resource planning.
- Market simulations and modeling.
- Risk and hazard analysis.
- Asset management support.
- Decommissioning planning and cost estimates.
- Bankability assessments.
- Project management office (PMO).
