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INDUSTRY I MARKET


main source of friction and inefficiency – deals stall, PPA need to be re-negotiated, and investors walk away as they see their returns erode.


New wave of solar solutions To help streamline this fragmented process and ultimately lower costs, a new wave of solution oriented platforms has entered the renewable energy industry. Instead of moving from one third-party to the next, organizations can now join forces with fully integrated providers.


Through these strategic partnerships, executives now have access to an end- to-end solution that includes the design, engineering, procurement, construction, financing, commissioning, operation, and long-term maintenance of solar assets.


In particular, bringing the legal and contractual expertise under one roof with the right specialists proves extremely valuable. Once the first deal is structured, developing the second and third become significantly easier – everyone understands the key points. The same can be said on the development side


of the process. Instead of working with multiple developers, it’s more efficient if organizations secure a partner who can either handle that side of the process internally or find a reliable partner to bring on board and negotiate the development economics up front. These models simplify the process for customers, creating a single point of contact for every aspect of the project rather than involving multiple individual vendors, all of whom expect to somehow participate in the project economics.


Ultimately, integrating the solution and working with one experienced partner to get the project completed brings with it a sense of familiarity and simplicity that can save months of time and hundreds of thousands of dollars in administrative costs, which can drastically impact PPA prices and project margins.


These single-partner solutions also provide a cleaner interface for organizations. Senior level executives only have to deal with one or two trusted individuals at their level that are driving the process forward.


A global environment So how is this new wave of solar solutions playing out across the globe? From country to country, the differences can really vary – every jurisdiction is unique. Whether the country has national, regional or state level utilities, partners have to determine the particular process with each and how predictable they will be.


In addition, different corporate, contract, and financial structuring elements regarding project entities need to be considered. Emerging markets can also present unique challenges if there are fewer solar experts and processes in place.


But while turnkey solutions face distinct challenges in each individual country, their streamlined approach offers clear benefits to those they do reach. Whether in Mexico or Canada, England or Brazil, streamlining the process allows more solar projects across the globe to come to life – efficiently and cost effectively.


©2014 Permission required. Angel Business Communications Ltd.


Issue V 2014 I www.solar-international.net 23


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