60MW wind farm – MEM project team in contracting phase to improve project plan commercial contracting and payment milestones
MEM team improved levered IRR to above 16% requirement
Optimised crane sequencing, negotiate EPC cash flows from front end to back end loading
|1st year availability||97%||76%||-21%|
|1st year revenues||USD 22.6m||USD 17.7m||USD -4.9m|
50MW wind farm affected by quality issues during first year of operations (engineering and construction defects in foundations). Investors did not have: callable securities (bonds from Chinese EPC contractor held by Chinese state owned bank). Experienced Owner’s Engineer during design review and on site during construction.
USE 4.9m loss of revenue (reduction in IRP of 1.61%), not including cost of repairs which were paid by shareholders.
|Note: above reflects loss of revenue and does not include cost of repairs, which were paid 100% by project investors.|
|1st year availability||100%||75%||25%|
|1st year revenues||USD 15.41m||USD 12.81m||USD 2.6m|
50MW phase one of a 220MW solar farm (totalling four construction phases over a two year period) affected by design defects (power quality issues due to low quality inverters).
Three month delay grid interconnect while power quality issues were rectified. This resulted in a loss of USD 2.6m loss of revenue (reduction in IRR 2.23%), not including USD 550k cost to shareholder to correct the quality problem.