When feasibility has been established for a project, the two most important considerations to be dealt with are Planning and Funding.
A project’s ultimate success depend on these two aspects of the project being well-managed.
Planning
Poor discipline and a lack of understanding of the requirements of the planning process can result in rejection. Planning timescales can be lengthy for projects and these timescales can be extended by poor documentation and a lack of respect for the process.
Funding
Most renewable energy projects factor in a dependence on subsidies to maximise the return and shorten the payback. Despite the prospect of future earnings, the capital payback period must be adequately funded to ensure that cash-flow shortfalls do not jeopardise the project. Unexpected delays, whether resulting from technical or construction site issues or planning delays can place a project with good payback into uncertainty if the cash runs out.
Most lenders require assurances that the project risks have been adequately evaluated through a detailed due diligence process. Depending on the nature of the project this process could be routine where technology is proven and the location is without difficulties, or it could be laborious in the case of leading-edge technologies, installations and/or difficult sites.
At Element we have dealt with a wide range of projects in terms of technologies and sites so can advise you based on our experience.