Will EPC contracts provide for the handover of a solar facility?

EPC Contracts will not provide for the handover of the solar facility to the Project Company, and the PPA will not become effective until all commissioning and reliability trialling has been successfully completed.

What does an EPC service provider do?

As an EPC service provider in the solar sector, we carry out the plant design, purchasing and construction of your solar power plant. As an EPC service provider, we design the plant (Engineering), purchase components and services (Procurement) and construct the power plant (Construction) including the infrastructure.

Should you choose an EPC contract for a solar project?

Given the significant monetary value of EPC Contracts, and the potential adverse consequences if problems occur during construction, the lowest price should not be the only factor used when selecting a Contractor. As noted earlier, an EPC Contract is one of a suite of agreements necessary to develop a solar project.

What is an EPC contract?

An EPC Contract delivers these requirements in a single integrated package, which is one of the major reasons why EPC Contracts are the most common form of construction contract used in project-financed utility-scale solar projects. The key clauses in any construction contract are those that impact on time, cost and quality.

How does EPC work?

In the EPC (Engineering, Procurement and Construction) of solar power plants, we design the selection and layout of the equipment to suit the characteristics of the site to maximize the amount of power generated, as well as the civil engineering, cabling and power transmission. We use our global purchasing network to source the equipment needed

Do EPC contracts impose PLDs?

Most, however, do not impose PLDs. EPC Contracts impose PLDs because the achievement of the performance guarantees has a significant impact on the ultimate success of a project. Similarly, it is important the solar facility commences operation on time given the liability the Project Company will have under other project agreements.