Comprehensive risk mitigation strategies can be taken now to avoid significant delays and cost overruns to critical community wind and solar projects.
In the midst of this expanding public health crisis, TerraPro Solutions understands the uncertainty that this news has triggered. While safety is first priority, TerraPro wants to support the renewable energy community in moving forward with their projects. To avoid the potential for significant delays and cost overruns, TerraPro highly recommends the following actions:
- Review your pipeline schedule and ensure that contingencies are in place.
- Prioritize all federal agency curative work to eliminate delays. Among federal agencies the timeline for review and approval of curable documentation including subordinations has grown from five months to 12 months+.
- Act now to mitigate all manageable delays to eliminate lender issues. Lenders are taking a cautionary view of exposure for materials delivery and the potential inability of projects to meet critical PPA and tax credit deadlines.
- Consider carefully how you negotiate contractual scheduling and timing risk. Overseas deliveries may resume, however, U.S. EPC/construction timelines, already constrained due to tax deadlines and timetables, may now be at risk as quarantines are imposed at state and local levels. This can result in increased costs and scheduling challenges for materials delivered to sites causing schedule safeguards to quickly evaporate.
“Preparation can prevent a crisis,” states Kimberlee Centera, CEO, TerraPro Solutions. “Our team is ready to help project developers successfully navigate these challenging times.”
News item from TerraPro Solutions