Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
#WindWebinar
#WindWebinar
q  This webinar will be available afterwards at
www.windpowerengineering.com & email
q  Q&A at the end of the...
#WindWebinar
Introducing the Featured Speakers
MODERATOR FEATURED SPEAKER
Michelle Froese
Senior Editor
Windpower Engineer...
ASSET MANAGEMENT:
MULTIPLE PERSPECTIVES
AND COMMON GOALS
Larry Freeman
Business Development Manager – Asset Management
EDF...
#WindWebinar
EDF Renewable Services
5
Company Overview
§  We’ve been servicing wind projects for more than 28 years
§  Our...
#WindWebinar
EDF RE -Key Figures Across North America
6
10,723
7,782
6,703
4,094 3,840
0
2,000
4,000
6,000
8,000
10,000
12...
#WindWebinar
The Renewable Energy Landscape –
Future Scenarios
Forecast through 2030
How this will change the Asset
Manage...
#WindWebinar
Multiple Perspectives
8
Historically, physical Asset Management was not seen as
a specific professional activ...
#WindWebinar
9
Asset Management is first and foremost a way of
management thinking. It is as much a paradigm and
conceptua...
#WindWebinar
10
What is your goal? All MWh’s are created equal, but no two
projects are the same.
§  Do you have a long te...
#WindWebinar
Physical Asset Management
11
A fluid concept with as many definitions as practitioners
A system to minimize t...
#WindWebinar
12
The more we understand about our assets - the demand on
our assets, their condition and remaining useful l...
#WindWebinar
13
Both a management paradigm and a body of management
practices
Applied to an entire portfolio of assets at ...
#WindWebinar
What Are We Trying To Accomplish?
14
Asset Management is the balancing of costs, opportunities
and risks agai...
#WindWebinar
What Are We Trying To Accomplish?
(cont.)
15
Asset Management also enables an organization to
examine the nee...
#WindWebinar
What Are We Trying To Accomplish?
(cont.)
16
Asset Management is the art and science of making the
right deci...
#WindWebinar
Holistic Asset Management
17
FINANCIAL
CONTRACTUAL
AND
REGULATORY
OBLIGATIONS
TECHNICAL
#WindWebinar
Financial
18
Project
Company
Collects and
Disperses
Revenue
Sponsor
Tax
Equity
Service
Providers
Landowners
O...
#WindWebinar
Financial
19
The management of failure in the asset base is highly
constrained by cost. We are not typically ...
#WindWebinar
Financial (cont.)
20
Key considerations
§  Different components have different probabilities of failure, as
d...
#WindWebinar
Technical Expertise
21
Don’t just look at the data. Know what it means for the
project.
Manage the signal to ...
#WindWebinar
Technical Expertise (cont.)
22
The more we understand about our assets, the higher our
confidence that our in...
#WindWebinar
Technical Expertise (cont.)
23
Do you have the technical expertise available when needed? Very
few organizati...
#WindWebinar
Technical Expertise (cont.)
24
Do you have the systems to manage technical documents?
This is key in all case...
#WindWebinar
Relationships, Compliance, and
Contract Management
25
There are two key considerations:
The list of hard deli...
#WindWebinar
Relationships, Compliance, and
Contract Management
26
Spend the time and effort to create a procedures manual...
#WindWebinar
Acquisitions and
Holdco parent
Construction
Management
Company.
Pre-COD: 100% - MSM
Post COD: [1]% - Class B ...
#WindWebinar
Food for Thought
28
Imagine a simplified hypothetical project:
§  150 MW, 25% capacity factor, $40/MWh PPA
§ ...
#WindWebinar
Bringing it all together – Common
Goals
29
Assemble the right team, using the right technologies, to
achieve ...
#WindWebinar
Questions?
MODERATOR FEATURED SPEAKER
Michelle Froese
Senior Editor
Windpower Engineering
& Development
mfroe...
#WindWebinar
q  This webinar will be available at
www.windpowerengineering.com & email
q  Tweet with hashtag #WindWebinar
...
#WindWebinar
Upcoming SlideShare
Loading in …5
×

Asset Management: Multiple Perspectives and Common Goals

619 views

Published on

Asset Management is the art and science of helping project owners make the right decisions to optimize the lifecycle performance and profitability of a project. In this webinar, learn how our Asset Managers provide oversight of wind and solar projects by managing the projects and their commercial agreements to optimize returns over a project’s lifecycle.
We will provide you with the knowledge of how utilizing an Asset Manager can increase your return on investment. By managing the financial and reporting aspects of your project, the counter-party relations, as well as, providing technical expertise and performance evaluation we utilize our experience and resources to make projects more profitable.

Published in: Engineering
  • Be the first to comment

Asset Management: Multiple Perspectives and Common Goals

  1. 1. #WindWebinar
  2. 2. #WindWebinar q  This webinar will be available afterwards at www.windpowerengineering.com & email q  Q&A at the end of the presentation q  Hashtag for this webinar: #WindWebinar Before We Start
  3. 3. #WindWebinar Introducing the Featured Speakers MODERATOR FEATURED SPEAKER Michelle Froese Senior Editor Windpower Engineering & Development Larry Freeman Business Development Manager EDF Renewable Services
  4. 4. ASSET MANAGEMENT: MULTIPLE PERSPECTIVES AND COMMON GOALS Larry Freeman Business Development Manager – Asset Management EDF Renewable Services February 23, 2016
  5. 5. #WindWebinar EDF Renewable Services 5 Company Overview §  We’ve been servicing wind projects for more than 28 years §  Our experience crosses all technologies and covers commissioning to end of life §  EDF RS is an integral component of EDF Renewable Energy’s IPP business AND an ISP to third parties §  We bring an ownership perspective to our customers’ projects About Larry Freeman: §  Oversees Asset Management for our Wind and Solar O&M Business §  Prior Regional Manager for Solar O&M Operations ̶  775 MWp of owned and third party solar assets across the United States and Canada §  Brings 19 years of experience in renewable energy and O&M
  6. 6. #WindWebinar EDF RE -Key Figures Across North America 6 10,723 7,782 6,703 4,094 3,840 0 2,000 4,000 6,000 8,000 10,000 12,000 Operations & Maintenance Developed Put Into Service Installed Capacity Divested EDF EN North America Activity December 31, 2015 MW
  7. 7. #WindWebinar The Renewable Energy Landscape – Future Scenarios Forecast through 2030 How this will change the Asset Management marketplace §  Strategies for scalability Internal, 3rd party, or Hybrid The right question is not where am I now, but where do I want to be? Source: EIA 2015 Annual Energy Outlook
  8. 8. #WindWebinar Multiple Perspectives 8 Historically, physical Asset Management was not seen as a specific professional activity, but as a loosely organized set of practices. Perceptions have changed. One notable example is the use of failure analysis to probe the relationship between preventative maintenance and failures in the aviation industry. Asset Management is the art and science of making the right decisions to optimize the lifecycle performance and profitability of a project. Management of physical assets is key to long-term operational performance and profitability.
  9. 9. #WindWebinar 9 Asset Management is first and foremost a way of management thinking. It is as much a paradigm and conceptual framework as it is a definition. Asset Management is fundamentally about “telling the story” to decision makers in the form of a business case which allows for sound investment in operations, maintenance, and capital spending. Multiple Perspectives (cont.)
  10. 10. #WindWebinar 10 What is your goal? All MWh’s are created equal, but no two projects are the same. §  Do you have a long term or short term horizon? Risk centered strategy versus a cost centered strategy §  Pay more for certainty but have exposure to potential market exits and failures – Satcon/Clipper §  Reduced cost = increased risk. This can be mitigated through effective Asset Management. Multiple Perspectives (cont.)
  11. 11. #WindWebinar Physical Asset Management 11 A fluid concept with as many definitions as practitioners A system to minimize the total cost of operating, maintaining and renewing assets within resource constraints while balancing an acceptable level of risk to the organization
  12. 12. #WindWebinar 12 The more we understand about our assets - the demand on our assets, their condition and remaining useful life, their risk and consequence of failure, the feasible options to repair, refurbish, or replace, and the cost of those options - the higher the confidence that our investment decisions are indeed the lowest life cycle cost strategies for sustained performance at an acceptable level of risk. Physical Asset Management (cont.)
  13. 13. #WindWebinar 13 Both a management paradigm and a body of management practices Applied to an entire portfolio of assets at all levels of the organization, or to a specific asset A requirement to continuously deliver the service levels stakeholders desire and regulators require Physical Asset Management (cont.)
  14. 14. #WindWebinar What Are We Trying To Accomplish? 14 Asset Management is the balancing of costs, opportunities and risks against the desired performance of assets, to achieve organizational objectives. This balancing must be considered over different timeframes.
  15. 15. #WindWebinar What Are We Trying To Accomplish? (cont.) 15 Asset Management also enables an organization to examine the need for, and performance of, assets and asset systems at different levels. Additionally, it enables the application of analytical approaches towards managing an asset over the different stages of its life cycle, including any post disposal obligations.
  16. 16. #WindWebinar What Are We Trying To Accomplish? (cont.) 16 Asset Management is the art and science of making the right decisions and optimizing the delivery of value. A common objective is to minimize the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered.
  17. 17. #WindWebinar Holistic Asset Management 17 FINANCIAL CONTRACTUAL AND REGULATORY OBLIGATIONS TECHNICAL
  18. 18. #WindWebinar Financial 18 Project Company Collects and Disperses Revenue Sponsor Tax Equity Service Providers Landowners Other Obligations Debt
  19. 19. #WindWebinar Financial 19 The management of failure in the asset base is highly constrained by cost. We are not typically willing to pay for zero likelihood of failure. Lowest lifecycle costs Quantify missed opportunities – missed opportunities are a cost §  This may be obvious, but this is the first step in focusing what can be controlled
  20. 20. #WindWebinar Financial (cont.) 20 Key considerations §  Different components have different probabilities of failure, as determined by age, materials and assembly processes, operating environment, usage and maintenance. §  Failures vary substantially in their consequence to the organization in terms of the production. Single points of failure hold far greater consequences in the event of a failure. §  To achieve the lowest life cycle cost, we must understand how our assets are likely to fail (the failure "mode") and which Asset Management processes and practices to deploy to appropriately manage those failure modes.
  21. 21. #WindWebinar Technical Expertise 21 Don’t just look at the data. Know what it means for the project. Manage the signal to noise ratio. Data may be the first crucial step, but transforming data into information is the real art of Asset Management.
  22. 22. #WindWebinar Technical Expertise (cont.) 22 The more we understand about our assets, the higher our confidence that our investment decisions are indeed the lowest life cycle cost strategies for sustained performance at a level of risk your organization is willing to accept. §  What are the demands on our assets? §  What is their condition and remaining useful life? §  What are the risks and consequences of failure? §  What are the feasible renewal options (repair, refurbish, replace) and the cost of these options?
  23. 23. #WindWebinar Technical Expertise (cont.) 23 Do you have the technical expertise available when needed? Very few organizations can afford to keep every possible specialist in house. Effective Asset Management entails knowing who to go to for help, when to seek that help, and having the contractual relationships in place to act quickly when needed. Do you have the technical strength to effectively manage counterparties who’s interests are not aligned with yours? To be blunt, you need the ability to call and prove shenanigans when an OEM, service, or warranty provider tries to turn an unexpected event into a windfall for themselves.
  24. 24. #WindWebinar Technical Expertise (cont.) 24 Do you have the systems to manage technical documents? This is key in all cases. All of the technical documentation may be safely stored, but these files need constant attention. §  Something as simple as a relay configuration file that was not amended correctly can cause substantial delays at exactly the wrong time. §  This can turn an “event” into something far more consequential.
  25. 25. #WindWebinar Relationships, Compliance, and Contract Management 25 There are two key considerations: The list of hard deliverables referenced earlier as the “thou shalt” aspects of a project. These include regulatory filings, insurance certificates, financial statements, warranty documentation, tax preparation, lease payments, etc. §  This may seems like the “easy part,” until it isn’t. Unfortunately it is common for a warranty or insurance claim to be denied because “the right thing wasn’t done in the right way at the right time.” Maintaining good faith and positive relationships to prevent unforeseen events from spiraling into more serious affairs.
  26. 26. #WindWebinar Relationships, Compliance, and Contract Management 26 Spend the time and effort to create a procedures manual. §  This concise document, distilled from all project agreements, lists all deliverables and contacts. §  Avoids diving back into 100 page documents to confirm that maintenance plans are due to the TO by Dec 1, or that lease payments are due by the 10th day of the quarter. An asset manager with a spreadsheet may be satisfactory for individual projects, but is not a scalable solution across growing portfolios. There are many providers of compliance software that can supply a product tailored to the renewable energy marketplace at an affordable price. §  Efforts to resolve predictable issues after the fact are a cost. Plan ahead for compliance.
  27. 27. #WindWebinar Acquisitions and Holdco parent Construction Management Company. Pre-COD: 100% - MSM Post COD: [1]% - Class B & MM Tax Equity Investors Post COD: [99]% Class A Members Project Company Acquisitions Co Holdco MSM BL Lenders and LC Providers Asset Manager MSM MSM SPONSOR Subsidiary. Post-COD: PPA LC costs and reimbursements are obligations of Project Co MSM Legend MSM = Manager and Sole Member MM = Managing Member M = Member Management Agreement [50]% M MM Project Company Transmission Co MSM Construction Lenders and LC Providers Sponsor Administrative Services Co MSM Administrative Services Agreement Construction Services Agreement Acquired by Holdco from Developer Direct Asset Management Relationships Below Red Line Sample Project Structure 27
  28. 28. #WindWebinar Food for Thought 28 Imagine a simplified hypothetical project: §  150 MW, 25% capacity factor, $40/MWh PPA §  A 1% increase in production (not inflation adjusted) equals a 20 year revenue increase of $2,628,000 There are many avenues to realizing this 1% §  Is it really a “no-brainer” to invest $500,000 now to see these returns? ̶  Not if your project horizon is only 5 years ̶  Not if a one-time CapEx hit doesn’t fit with your larger goals
  29. 29. #WindWebinar Bringing it all together – Common Goals 29 Assemble the right team, using the right technologies, to achieve the best possible outcome. Each asset owner may have different long term objectives, but they share the common goal of an asset that produces the most value at the lowest cost. De-risking projects. §  This can be done through wraps in preparation for yieldcos or institutional and public investors Different technologies require different Asset Management solutions, but the principles remain the same.
  30. 30. #WindWebinar Questions? MODERATOR FEATURED SPEAKER Michelle Froese Senior Editor Windpower Engineering & Development mfroese@wtwhmedia.com Larry Freeman Business Development Manager EDF Renewable Services Larry.Freeman@edf-re.com company/edf-renewable-energy@Windpower_Eng
  31. 31. #WindWebinar q  This webinar will be available at www.windpowerengineering.com & email q  Tweet with hashtag #WindWebinar q  Connect with Windpower Engineering & Development q  Discuss this on EngineeringExchange.com Don’t Forget!
  32. 32. #WindWebinar

×