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assumptions also makes sense. And this
Revenue structures have also become should be done before digging into basis and more diverse and complex. PPAs are evolving, market pricing. It is also important to get real and owners need dynamic O & M contracts quotes for keeping OPEX costs fresh. Many that better align with value. When a storage projects traded during frothy times had overly project has the potential to make its entire optimistic assumptions in order to make a return over a few days during a winter storm deal, this means overly optimistic assumptions or heat wave, availability of O & M becomes sill persist in portions of the operating fleet. much more consequential.
What’ s the number one thing owners can do to improve their operations? Focus on what you’ re good at- you can’ t do everything. Development, finance and construction are hard; adding day-to-day operations on top of that is even harder.
Owners need to focus on what’ s most valuable to their organization, which is usually relationships like those with capital, offtake, key equipment vendors, and landowners. It’ s typically not as valuable for them to focus on daily asset management tasks like bookkeeping, actively monitoring sites, or tracking every compliance requirement, but these things still need to get done.
Having a reputable third-party asset management team focus on the day-to-day can free up owners to scale and build value across their portfolio. Many capital providers today realize the potential of matching the expertise of quality developers with the focus of thirty-party asset management as a means for a better end-result.
What are some of the most overlooked risks in renewable project operations? In the US, extreme weather had been historically overlooked with much of the early development occurring in the West. As development moved east, this has had a tremendous impact, resulting in significant insurance claims and now rising insurance costs. Several large hail events in Texas have been the most consequential and have catalyzed several industry leaders to focus on best practices for design and active operational mitigation.
What does‘ mature’ asset management look like, and how do owners know when to move beyond spreadsheets? It’ s always time to move beyond spreadsheets. To be efficient, you need accessible quality data for all stakeholders. Mature asset management requires transparency, accountability, and repeatability- things Excel simply can’ t deliver at scale.
Having centralized data enables scaling that spreadsheets can’ t handle. If you have a faulty inverter issue across multiple projects, a software platform makes it easy to address fleet wide. This shared knowledge across your entire fleet is powerful and impossible without a central platform. You also can examine any project’ s complete ticket history, determine root causes, understand resolution patterns, and identify financial trends. This granular visibility enables prioritized repairs and optimized operations.
Asset managers need to add value beyond administrative support. This lies in the breadth and depth of issues they’ ve encountered and resolved.
You will know it is time to upgrade your asset management system if you are missing deadlines, have financial leakage, failing audits, facing difficulty scaling and managing multiple counterparties, or struggling with compliance. If you spend more time creating reports than leveraging the data they provide, you need to upgrade your system. Technology is an enabler, but not always the solution- processes and people must evolve together. Without this foundation, it’ s difficult to respond effectively to risks, or even track them in the first place.
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