Page 19 - North American Clean Energy January/February 2019 Issue

Figure 2: Tracking Performance and Exclusions (Wind)
averse your guarantee provider is to taking on additional risk. e calculation compares actuals to expected (uptime hours, production, revenue), with adjustments for any exclusions.
Exclusions: Understanding what events are excluded is key to understanding how much risk is being passed on to the guarantee provider. Some categories of exclusions are straightforward, such as Force Majeure or curtailment; others are more questionable, such as scheduled maintenance, major component replacements, or degradation. It’s a good idea to spell out, as clearly as possible, who will be responsible for lost performance for each scenario.
In addition to de ning exclusions, the guarantee provider should also explain how they will track
excluded events. If this is not de ned
upfront, the guarantee could become an
administrative burden. An example of tracking performance and exclusions is provided in Figure 2.
Liquidated Damages/Bonuses: Liquidated damages are the typical method to enforce a guarantee, where the guarantee provider is responsible to make the Owner whole for losses. Owners might also want to incentivize the guarantee provider to increase performance with bonus payments. Helpful hint: be wary of step calculations (e.g. 0-1 percent above target is equal to a 5 percent bonus, 1-2 percent above target is equal to a 10 percent bonus). ese can disincentivize the operator from maximizing performance, with the operator thinking “I hit my rst bonus level, and it’s a lot of e ort to hit the next level”. A better bet is linear calculations, where each additional unit of production is equally incentivized.
As the industry continues to advance, so too will the guarantees that backstop performance. Guarantees are essential
to ensuring the nancing of a project, protecting cash ow, and providing assurance that your plant is being operated with the Owner’s best interests in mind. However, beyond the guaranteed performance levels, it is important to understand the risks that are being mitigated, and to structure the guarantee so as to avoid administrative burden, and provide true and transparent coverage.
Nicolás Rossel is Head of Business Development – Asset Optimization, Mexico for EDF Renewables, he joined the Chilean o ce in 2016, and is currently based out of Mexico City, Mexico. Prior to joining EDF, Rossel worked as a senior consultant at Sunspot Services Chile. He has lived in the US, Canada, Chile, and Mexico. He has a BA in English from the University of British Columbia in Canada, and an MBA from UAI in Chile.
Lyndsey Shuckerow is Strategic Growth Analyst – Asset Optimization for EDF Renewables. Prior to joining EDF, Shuckerow worked in economic consulting for the energy industry. She has a BS in Mechanical Engineering from Cornell University.
Wind turbine designed for extreme weather
BarberWind Turbines’ 800kW wind turbine has been specially designed to serve the distributed generation market and is especially interesting to Caribbean island nations because it has
a built-in lifting system and can be hinged
down in the approach of severe weather or a hurricane. An advantage of the lifting system
is the BWT doesn’t need a heavy-use crane to erect it. It is assembled on the ground and then raised into place utilizing its own apparatus. Plus, it ships in standard containers so it doesn’t require special transport or permits.
BarberWind Turbines LLC
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EDF Renewables
/// www.edf-re.com
Nordic Chuted Box Pads for Pad-Mount Transformers
• Nordic Fiberglass was rst to design and manufacture “chuted” box pads for pad-mounted transformers installed in a slurry mix solution next to the tower pedestal.
• Chuted box pads provide a reliable and simple solution to protect underground cables from the tower to the transformer.
• Installed eyebolts on the box pad allow the attachment of lifting straps to hold the box pad up to the desired height.
ORDIC FIBERGLASS, INC. Quality Products for the Electric Utility Industry
P.O. Box 27 Warren, MN 56762 Tel: 218-745-5095 Fax: 218-745-4990 www.nordic berglass.com
North American Clean Energy
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