Wind Turbine Procurement Strategy Development
Learn how to develop an effective procurement strategy for wind turbine projects in the wind electric power generation industry.
Typical EPC Agreement Structure for a Wind Project. In light of the multiple factors influencing the development of a wind energy project, no single contractual structure applies to all projects. However, the following example is typical of how many developers address certain common issues.
Design and Engineering Services. Wind power projects require design and engineering expertise that is unique to the wind power generation industry. Turbine capacity is, in part, dictated by the operating parameters of a project, which in turn are dictated by the project's location and meteorological conditions.
The developer and the turbine supplier enter into a turbine supply agreement whereby the project developer agrees to purchase a specific number of wind turbine generators from the turbine supplier, along with the turbine supplier's services to deliver the turbine equipment to the project site and commission the same.
A. Financing Issues. A wind energy project developer often requires some form of substantial debt financing or joint venture financing to pay for the design, engineering, procurement, construction, and initial operation of the project.
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