Page 65 - North American Clean Energy July/August 2019 Issue

A Best Practices framework includes:
• Site feasibility and analysis with a
high-level review of permitting and jurisdictional issues. is includes a review of the public agencies that may be involved (such as the FAA).
• Compliance review to ensure that the project adheres to pertinent regulations.
• Title Insurance with a comprehensive analysis of the title environment.
• Mechanics lien coverage and ALTA 35 endorsements, which provide insurance coverage for damage sustained by the insured for the removal or alteration of an improvement.
• High-level transmission analysis
along with transmission
capacity assessment.
• O -taker negotiations such as PPAs
with utilities or private entities.
• O -taker review and evaluation of
the time required for the o -taker to build the transmission line
to ensure that it meets project completion deadlines.
• Future phases - feasibility analysis and project negotiation must consider making reasonable provisions for future phases. Pre- approvals that facilitate future project phases are much easier to obtain at the initial planning stage than further down the line.
• Quantifying energy yield for lenders to obtain a bankable energy yield assessment. Annual variations in generation must also be factored in.
• Ensuring that power can be exported into the electricity grid without constraint. Understanding the risks associated with the eventual operational regime is critical to the success or failure of a project.
• Identi cation, mitigation, and management of the environmental implications of the project is crucial to the long-term success of a project and the corporate reputation.
• Commercial market for the energy and policy environment must be understood in order to negotiate power purchase agreements.
In addition to comprehensive due diligence, a careful business case assessment includes understanding
the goals of the investors to ensure that the nancial realities of the project are clearly addressed. is considers both technical viability and environmental impact, as well as long-term nancial soundness and the ability to withstand the competitive pressures of the market. e more detailed a due diligence process is, the less likely that potential risks will be overlooked. orough due diligence is imperative to the success and resilience of every renewable energy project.
Kimberlee Centera is CEO of TerraPro Solutions, a consultancy made up of renewable development experts with project experience across the United States in solar, wind, and energy storage. Kimberlee is a risk management expert for the development and nancing of large-scale generator energy projects. Under her leadership, TerraPro Solutions has generated over 5,500 MWs in renewables, with a total nanced value of over $6 billion.
TerraPro Solutions /// terraprosolutions.com
North American Clean Energy
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