Services

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Technical due diligence of projects or portfolios of projects.

Technological and economic audit of projects.

This involves the identification and formal characterization of operational risks associated with projects, covering the entire lifecycle from pre-construction to decommissioning, and leading to the estimation of project financial indicators.

Some form of due diligence is generally required for project financing, investment, or sale.

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Energy yield, P50, P90, losses.

Review of studies estimating future production and possible losses (wake, curtailment, electrical, unavailability, etc.).

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Optimization of acoustic or environmental curtailments.

• Review of existing studies and measurement reports.
• Review of planned curtailment plans.
• Identification of potential shortcomings and optimization opportunities.

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Review of financial model assumptions.

• Capital expenses (“CAPEX”).
• Operating expenses (“OPEX”) and associated maintenance reserve accounts (“MRA”).
• Energy yields (P50, P90, future energy production).
• Energy selling prices.
• Project operation lifetime.
• Construction schedules.

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Review of contracts.

• Supply and installation of wind turbines.
• Construction.
• Operation and maintenance.
• Asset management.
• Grid connection.
• Rnergy selling (“PPA”, “corporate PPA”, aggregation).

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Assistance with contract negotiations.

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Customized studies or consulting missions.

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Lifetime extension.

Analysis of the potential for extending the operation lifetime of the projects.

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Repowering.

Analysis of the potential for park renewal (“repowering”).

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Performance analysis.

• Comparison to wind indexes.
• Analysis of the causes of any discrepancies between expected and actual production:
  • Observed wind conditions differing from expected.
  • Unavailability losses.
  • Aerodynamic, mechanical, or electrical underperformance (e.g. power curve issues).
  • Losses induced by wake effects from neighboring projects.
  • Losses due to acoustic or environmental curtailments.
  • Wind alignment problems.
  • Problems with imperfect commissioning or abnormal behavior of the control system, primarily related to blade pitch control systems or manufacturer-specific curtailments (wind sector management, derating or other methods of relieving mechanical or electrical stress).

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Analysis of historical operating and maintenance data.

• Analysis of significant past failures.
• Analysis of observed operating and maintenance costs.
• Review of inspection reports (full wind turbines, blades or other components).
• Identification of low signals that may foreshadow future serial defects, future maintenance cost overruns, or reduction in operational lifetime.
• Estimation of past downtime and unavailability losses, and forecast of future ones.

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Performance optimization.

• Assistance in conducting studies, onsite measurements or inspections:
  • Acoustic studies and measurements.
  • Power curve measurement (as per IEC 61400-12 standard).
  • IWind turbines visual inspections.
  • Blade inspections using telephoto lenses, crawling robots, drones, rope access, or aerial work platforms.
  • Gearbox endoscopies.
  • Oil sampling.
  • Other.
• Support in organizing regular inspections: mandatory ones, inspections of bolts, of electrical installations, of safety systems (automation safety chains, emergency stop systems, fire detection systems, extinguishers, lifting systems, anchor points, other).

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Technical design review.

• Proposed wind turbine model.
• Electrical engineering.
• Civil engineering.
• Grid connection.
• Site suitability review of the wind turbine model.

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Construction supervision.

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Review of permits and authorizations, already obtained or still pending.

Review of environmental impact assessment reports, of which acoustic studies.

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Review of the completeness of land securement.

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Project feasibility assessment.

• Technical constraints.
• Environmental impact assessments.
• Grid connection solutions.
• Regulatory constraints.
• Energy selling strategy and options.

In the wind energy industry, technical due diligence generally includes the following sections:

• Energy production study or review of existing studies (estimation of the future energy production).
• Technology review of the chosen wind turbine model and its site suitability.
• Review of operation and maintenance contracts (wind turbine O&M, infrastructure O&M and technical asset management contracts).
• Review of the assumptions of the financial model (energy yield, lifetime, CAPEX, OPEX, tariffs).
• For projects yet to be built:
  • Review of permits to be obtained and the maturity of project development. Review of the extent of land rights securement to date.
  • Review of contracts for the selling of the energy produced (purchase agreements, aggregation agreements, documents related to potential tenders).
  • Review of grid access rights securement and grid connection agreements.
  • Review of construction contracts (supply and installation of wind turbines, infrastructure construction, construction supervision).
  • Review of the construction schedule.

Overview of the “due diligence” concept

The term “due diligence” is used in practice in finance and industry to refer to the audit of a project or company, allowing for a thorough understanding of the project, often translated as risk level and financial model assumptions used for financing or investing in the project.

This term generally refers to the “legal due diligence” carried out by specialized lawyers. However, in markets with a strong industrial or technical component, such as the renewable energy market, it is recommended to supplement this with “technical due diligence” carried out by technical experts in the sector. In the renewable energy industry, this is more of a market practice than a strict legal obligation.

In practical terms, a technical audit or technical due diligence relies on analyzing project documentation (primarily permits, contracts, technical documentation and specialized study reports) and generally on an on-site inspection or a review of recent inspection reports. Based on this information, the expert prepares his report using specialized software, his own digital models, databases and knowledge.

The methodology involves identifying the technical and economic opportunities and risks of the project(s) in question. This, combined with a review of the technical and economic input data of the financial model, allows for project categorization, valuation, and ultimately, decision-making.