Due diligence on independent energy storage power station projects

Are property due diligence investigations for a Renewable Project different?

In general, property due diligence investigations for a renewable project will not be substantively different from those carried out for any major acquisition or pre- funding title investigation.

What is due diligence in an EPC contract?

One of the key aspects of due diligence in the context of the EPC contract is to understand what stage of completion the project has reached. This will depend on the project in question but completion typically comprises a combination of: • Physical completion of construction.

What is a renewable power project?

Renewable power projects deliver energy that is generated naturally and continuously in the environment, as opposed to energy generated using the incineration of oil, coal or gas, or from nuclear fuel. Renewables generate with low or zero net carbon dioxide emissions and play an important role in combating climate change.

What should be included in a fuel due diligence?

The key focus of the due diligence will be on the quality and reliability of the volumes of fuel to be supplied, including the following considerations: • What is the term of the FSA? Is it aligned with the terms of the PPA and CFD?

What should be included in the due diligence process?

During the due diligence process, the terms of the connection agreement will need to be identified and understood to ensure they are consistent with the overall project (both in terms of capacity, costs and timescales). It will also be important to understand whether any of the terms are onerous or unusual. Some areas of focus include:

What risks should be identified during the due diligence process?

All potential risks, such as unhappy neighbours, environmental and wildlife protection concerns, deviations from planning permissions and access rights should be identified during the due diligence process.