Offshore Turbine Supply Agreement
In this example, a developer wants to acquire wind turbines (which are owned by the design) and use the services of the turbine supplier to commission the wind turbines. The developer also wants to enter into a contract with the turbine supplier to provide certain operating and maintenance and warranty services. Repowering projects can be either full repowering projects or partial repowering projects. In a full-fledged repowering, the old turbines, foundations and electrical installations are closed, demolished and removed from the project, and new turbines are built on new foundations specially designed for the new turbines. When new collection and control circuits are added, the reintroduced site is able to extend the life of a project by at least an additional 10 years. Developers are able to reuse previously constructed access roads, pavements and sleeping surfaces, and equip substations and common facilities instead of building new facilities, reducing the total cost compared to a new production facility in green grasslands. This chapter provides an overview of the contractual structures usually applicable to the construction of wind projects, including (i) the design, engineering and construction of project infrastructure (e.g. B access roads, foundations, crane cushions, substations, transmission lines and maintenance equipment), (ii) the acquisition of wind turbines and related equipment, iii) the construction of wind turbines and (iv) the construction of ancillary facilities. This discussion is written from the perspective of a wind project developer; However, the following information should be of interest to design and design, construction, operations and maintenance companies, as well as major equipment suppliers. As with any complex trading transaction, all parties have considerable value to gain or lose and therefore considerable potential for creative legal and business strategies to increase value for all parties.
Pacific Hydro`s management of the project is subject to the requirement for unanimous agreement on important issues. The company has entered into a turbine supply contract with Mitsubishi Power Systems Inc. A. Financing Matters. A wind project developer often needs a significant form of loan financing or joint venture to pay for the design, engineering, procurement, construction and first operation of the project. Financial institutions and potential investors will seek the opportunity to review and comment on the range of turbine supply and equipment contract balance sheets (as well as related operations and maintenance and warranty agreements) before allocating funds. Of particular interest to lenders and potential investors are all the provisions of the agreements that give the lender or investor the opportunity to take over the project when the project proponent (the borrower) is late, and any provision indicating the extent and nature of the damage that a project proponent has made available to a project proponent for a late conclusion or for the failure of the project to produce in expected amounts of electricity. In addition, financial institutions will want to decide on payment plans, security, warranty and inspection rules in project agreements. B. Payment rules.
In order to ensure the timely supply of wind turbines and other materials and the progress of the work, the proponent must pay the turbine supplier or the manufacturer`s balance in a timely manner. For the turbine supplier, the proponent usually makes a down payment of an agreed amount with the turbine supplier.