Due diligence for a wind-solar-battery hybrid project
Location: Jaffna, Sri Lanka
Date: September 2013 - December 2013
Conducting a due diligence investigation to inform a renewable energy investment decision.
Entura’s client had limited experience with renewable developments and was seeking expert advice to assist in an investment decision for a 70 MW renewable energy hybrid (wind and solar) project proposed for Jaffna, Sri Lanka. The project included 40 x 1.5 MW wind turbines (60 MW), a 10 MW solar photovoltaic power system and a 1 MW vanadium redox battery. The project was to be connected to the national grid via a 14 km 33 kV transmission line terminating at a 132 kV substation.
Entura was engaged to review the information supplied; inspect the manufacturing facilities of the wind turbine, solar and battery suppliers; provide technical advice; and prepare a technical due diligence report.
We assessed the resource available for solar and wind potential, assessed the technology for suitability for installation, reviewed the grid connection design, reviewed environmental and generation permits, and reviewed the contracts for the engineering, procurement and construction (EPC) supply, operations and maintenance, and power purchase agreement (PPA). We also commented on the appropriateness of the proposed costs.
Entura’s final report highlighted the risks and benefits of the proposed project, and we worked closely with the client to develop a business case for the investment decision.
Entura’s wide experience of renewable energy projects enabled a holistic assessment of the costs, risks and potential advantages of the proposed project, from the finer technical details right through to the high-level issues affecting the business case. This enabled the client to develop a deeper understanding of the opportunity’s strengths and weaknesses and to be able to make an informed, prudent investment decision.