Why Renewable Developers Should Partner with EPCs Sooner for Better Outcomes

Renewable developers are tasked with numerous responsibilities to bring projects from conception to completion. Traditionally, Engineering, Procurement, and Construction (EPC) firms are brought into the fold during the later stages of project development.

By this time, significant milestones such as land acquisition, permit procurement, community engagement, site layout planning, and financing have already been achieved. 

Many developers are reviewing their workflows and seeing the substantial advantages of involving EPCs much earlier to mitigate risks and enhance renewable energy projects' overall success and efficiency.

According to McKinsey, early partnership with EPCs is a fast-rising trend for utility-scale developers. “Forming partnerships will continue to be a winning strategy in solar project delivery, but the landscape of partnerships is expected to change going forward. First, the industry could shift to include a broader set of stakeholders vying for committed partners. Second, new joint business growth and capability-building approaches could deepen partnerships and promote collaboration across larger and longer-term project portfolios.”

5 Key Benefits of Early EPC Involvement

1. Optimized Site Assessment and Engineering Decisions
One of the primary advantages of early EPC collaboration is optimizing site evaluation and engineering decisions. When EPCs are involved from the beginning, developers can leverage their extensive expertise to assess site suitability more accurately. EPCs provide critical engineering insights that can streamline the development process, leading to more effective project planning and execution. This early-stage input ensures the chosen location is feasible and optimal for the project’s long-term success.

2. Cost-Effective Material Procurement
Engaging EPCs during the initial stages of project development also facilitates more strategic planning and procurement of materials. Early involvement allows for identifying and securing components at lower costs, as EPCs can negotiate better prices and terms with suppliers and ensure overall bid accuracy. Additionally, ensuring that all necessary materials are available when needed, preventing delays and cost overruns that often plague projects where procurement is left until later stages.

3. Enhanced Risk Mitigation and Successful Completion 

Risk mitigation is another crucial benefit of early EPC involvement. By integrating EPCs from the outset, developers can double-check critical project details. 

Using advanced tools like Transect, EPCs can confidently verify compliance and effectively manage environmental and regulatory risks. A thorough review process helps ensure compliance with environmental regulations, permit requirements, and other vital factors. Acting as insurance to protect the project from costly oversights such as inadvertently harming endangered species habitats or violating regulatory setbacks. This level of due diligence significantly reduces the risk of encountering legal or environmental issues that could derail the project. 

Innovative technologies are revolutionizing project engineering and construction. EPCs that embrace these technologies can achieve higher margins through efficiency improvements, and developers who provide opportunities to test these technologies on their projects can also benefit. With early EPC partnership, developers can have greater confidence in a successful and sustainable project outcome.

4. Streamlined Project Management 

Effective project management is essential for the success of any renewable energy project. Early involvement of EPCs fosters better coordination and communication throughout the project lifecycle. With EPCs on board from the start, all stakeholders are aligned, which reduces the likelihood of miscommunication and errors. 

5. Improved Financial and Operational Efficiency

Early-stage collaboration with EPCs also contributes to better financial planning and operational efficiency. With EPCs' input, developers can identify potential cost savings and optimize resource allocation. This collaborative planning results in more viable and profitable projects, as developers can make informed decisions that enhance financial and operational outcomes. The expertise of EPCs in these areas ensures that projects are completed on time, within budget, and operate efficiently once they are up and running.

Transform Your Renewable Energy Strategy with Early EPC Input

Engaging EPCs earlier in the project lifecycle offers many benefits for renewable energy developers. From optimized site evaluation and cost-effective procurement to enhanced risk mitigation and improved project management, early collaboration with EPCs can significantly boost the success of renewable energy projects. Transect helps facilitate this collaboration by providing the necessary context and information to get ahead of challenges and ensure project success from start to finish.

Incorporating EPCs at the earliest stages of project development is not just a best practice but a critical strategy for achieving better outcomes in the renewable energy sector. By leveraging the expertise and capabilities of EPCs from the outset, developers can navigate the complexities of project development more effectively, resulting in projects that are not only successful but also sustainable and economically viable.

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