Manage Post-COD Operation

In virtually all cases, the project developer or owner will be in charge of technical asset management (including operations and maintenance, troubleshooting, etc.). However, you will be responsible for managing the contract—this includes monitoring monthly (or quarterly, as applicable) PPA settlements, conducting performance review, and identifying any contract triggers. To ensure these three tasks are followed through on, consider the tips below on maintaining continuity of internal staffing and reporting.

Continuity of internal staffing and reporting

• Retain principal staff - the principal staff that oversaw deal negotiations should be involved in monitoring the deal and tracking its performance. They hold key relationships with the developer and have an in-depth understanding of the contract and the context of the deal.

• Regular internal calls - monthly or quarterly calls with internal teams, including finance, legal and accounting, are essential. They provide a useful mechanism to keep all parties informed on project performance, identify potential problems early, and keep all parties engaged in anticipation for future transactions.

• Avoid oversight committees - avoid creating large committees to track deal performance. While initially pushing the deal through the company, deal champions often emphasize that such deals will not require significant oversight and resources. Large, bureaucratic committees can cause deals to be viewed unfavorably and may jeopardize prospects of future deals.

• Create systems & procedures - deal teams in companies are often small. Hence, such teams should anticipate future staff turnover and create systems, documentation and standards to ensure that key knowledge is not lost.

• Establish project timeline - one example of such a system is creating a timeline within the deal team after the contract is signed. This timeline would, over the lifetime of the project, identify important dates around performance review, auditing and possible contract triggers.

Furthermore, contracts are sometimes amended post-signing. This should not be cause for alarm as long as the reason behind the amendment is understood by all parties.