Power Project Development: Aligning The EPC Agreement And Power Purchase Agreement
Power project developers often negotiate the engineering, procurement, and construction agreement (EPC) at the same time as other project contracts. Depending on the project type and contracting paradigm, a developer (owner) must align key EPC terms with some or all of the following: (1) power purchase agreement (PPA), (2) interconnection agreement, (3) major supply agreements, and (4) operations and maintenance (O&M) agreement.
This article will evaluate the EPC as an exercise in risk allocation, and then highlight issues for […]