Daniel Pardo, Senior Project Manager de DNV GL – Energy (Canadá) fue quien abrió el encuentro haciendo referencia a los aspectos técnicos a tener en cuenta a la hora de realizar el proceso de Debida Diligencia para el financiamiento de proyectos solares a gran escala.

1. DNV GL © 2013 25 April 2017 SAFER, SMARTER, GREENERDNV GL © 2013
Daniel Pardo
Senior Project Manager
ENERGY
What does an Independent Engineer look for in a
PV Plant?
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H&B solar PV workshop - Colombia
April 25, 2017

2. DNV GL © 2013 25 April 2017
Outline
DNV GL Introduction
PV System Landscape
Independent Engineer Role
Types of Independent Engineering Projects
Independent Engineer Scope and Key Elements
What enhanced reliability data would increase the
value of a PV system?
Conclusion
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3. DNV GL © 2013 25 April 2017
About DNV GL
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350
OFFICES
14,000
EMPLOYEES
DNV GL is the world’s
largest independent
energy & renewable
advisory firm.
We have over 2500
energy experts.
Around 1000 are focused
on renewables.
DNV GL has advised
over 5500 solar
projects.
DNV GL’s Solar Team has
considerable experience in
many solar aspects

4. DNV GL © 2013 25 April 2017
DNV GL has Combined Strengths to Support Energy Customers
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5. DNV GL © 2013 25 April 2017
Basics of a PV system
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6. DNV GL © 2013 25 April 2017
DNV GL Offers Services for Solar Projects and Components
Solar Project Lifecycle: DNV GL Solar Services
Developers &
Equipment
Manufacturers &
Utilities
 Feasibility
 Utility Grid
Integration
 Component
Technology Reviews
 Energy Assessment
 Environmental
Permitting
Project Feasibility
System Design
& Development
Construction &
Commissioning
Developers &
Financiers
EPCs & Utilities
 Independent
Engineering
 Owner’s
Engineering
 Project Certification
 Module and
Inverter
Qualification
Testing
System
Operations
 Project Testing
 Forecasting
 Existing Asset
Consulting,
Refinancing and
Decommissioning
 Monitoring,
Control, Asset
Management
Developers &
Owners &
Utilities

7. DNV GL © 2013 25 April 2017
PV System Landscape
 Installed capacity growing rapidly!
 73 GW PV capacity to be installed globally in 2017
 Over 300GW total global capacity (growing for 10 years)
 LATAM to install 15 GW in the next ten years
 PPA tariffs (USc/kWh): Turkey (Mar’17: 6.99), India (Feb’17: 4.95), Chile
(Aug’16: 2.91), Mexico (Mar’16: 3.60) and Peru (Feb’16: 4.80)
 PV largest new generation source in USA in 2016
– 39% of new generation capacity solar (29% gas , 26% wind)
 More experienced Financiers/EPCs/Installers/Operators
– Also many new players
 New technologies being introduced
– Innovation and potential risks
 Module costs dropping rapidly
– Reports below $0.40/Wdc
 Inverter costs also dropping rapidly
 It is critical to maintain high PV system quality and performance
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8. DNV GL © 2013 25 April 2017
Construction of a solar PV system
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9. DNV GL © 2013 25 April 2017
Independent Engineer’s Role
 Provide technical advice to financiers of PV systems
– Provide opinions about technical system risks
– Provide technical input to financial models
– Support sound investment decisions
– Note that financial models are not standardized
 First PV IE projects in USA 2005
 Larger projects being financed
– Use same approach as other investments
 Historic Example Nellis AFB 2007 - SunPower
– 14.2MWdc
– Tilted tracker
– Multiple module suppliers
– Successfully financed at $102M
– $7.18/Wdc
 Industry and IE have evolved since then
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10. DNV GL © 2013 25 April 2017
System “Bankability”
 System “Bankability” has a number of elements
 Not formal definition
– No fatal flaws or major issues
– Risks identified
– Meets required codes and standards
– Within good industry practices
– Employs high quality components
– Installed with a high quality process
– Reviewed and verified independently
 Financier’s risk appetite impacts investment decision
– Vary considerably!
 Independent Engineer focuses on the technical aspects
– Evaluating and quantifying risks – IE’s help
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11. DNV GL © 2013 25 April 2017
Types of Independent Engineering Reviews
 Individual System Review
– Utility scale PV systems
– Commercial and Industrial PV systems
– Rooftop
– Ground mount
– Customer side of meter
 Portfolios of systems
– Including residential projects
– Process review instead of individual project
– Can support “Securitization” – informing ratings agency
 Technology Reviews for key components
– Modules
– Inverters and MLPE
– Tracking and racking systems
– Key PV system components are not commodities
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12. DNV GL © 2013 25 April 2017
Types of Independent Engineering Reviews
 New projects
– From feasibility through operation
– Opportunity to make changes and improvements
 Operating assets – being acquired
– Design is fixed
– Historic operating data available
 Short term owners
– Build and operate for several years
– Tax equity driven timing
 Long term owners
– Concerned about long term operation - 25 years or more!
 New types of projects
– Community solar
– Corporate purchases
– Solar+Storage
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13. DNV GL © 2013 25 April 2017
Independent Engineer System Scope and Key Elements
 Scope can include items below – not entire menu of services
 Varies as appropriate for specific project
 Safety considered throughout!
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Site evaluation
Site Evaluation Design Review
Key Equipment
Review
Energy Modeling
Technical Review
of Key Contracts
Financial Model
Input Review
Site Inspection(s)
Commissioning
Review
Final Completion
Documentation
Operations

14. DNV GL © 2013 25 April 2017
Independent Engineer System Scope and Key Elements
 Site Assessment
– Anything noteworthy about project site that could be issue
 Design Review
– Confirm project follows appropriate codes, standards, good industry practices
– Electrical
– Structural
– Civil
– Geotechnical
– Environmental
– May be done by evaluating provided reports
 Key equipment review – NOT COMMODITIES!
– Modules
– Inverters
– Tracking/mounting system
– Balance of System
– Monitoring system
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15. DNV GL © 2013 25 April 2017
Energy Modeling
 Independent energy prediction is important - unbiased
 Meteorological data
– Solar Resource and environment
– Critical in accurately predicting energy production
– Review and select from available sources – independent selection key
– Ground stations
– Satellite sources
 System design details
 Models of components
– Modules
– Inverters
– BOS
– Critical to be accurate
 AC interconnection
– Energy calculated for metered point of interconnection
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16. DNV GL © 2013 25 April 2017
Energy Modeling
 Loss Factors - some key
– Ohmic
– Temperature
– Mismatch
– Shading
– Soiling
– Availability
 Degradation – system level
– Informed by NREL work and additional system specific
information plus additional test and qualification data
 Uncertainty analysis also included
 Downside analysis
– P50 - P75, P90, P95, P99…
– Includes resource and other variability and uncertainty
 Combination of standard and customized tools
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17. DNV GL © 2013 25 April 2017
Independent Engineer System Scope and Key Elements
 Technical review of key contracts
– EPC Contract – Experienced contractor is important
– Schedule
– Budget and contingencies
– Quality systems
– System warranties
– Operations and Maintenance contract review
– Scheduled maintenance
– Unscheduled maintenance
– Interconnection agreement
– Power Purchase Agreement (PPA) review
– Price $/MWh (including time of day rates)
– Possibility of curtailment
– Offtake Agreement for C&I projects
– Who will be accepting power on customer side of meter
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18. DNV GL © 2013 25 April 2017
Independent Engineer System Scope and Key Elements
 Financial model technical review
– Check that technical inputs are correct
– CAPEX, OPEX, Contingencies
– Models vary between financiers
 Site inspection(s)
– Does constructed system match design documents
– Keep eye out for things inspector from AHJ may have missed
 Commissioning review
– System testing per EPC contract
– Capacity, Performance Ratio, Availability test
 Provide closing documents to support funding
 Ongoing operations – quality monitoring system is important
– Reviewing performance for system and component warranty
enforcement
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19. DNV GL © 2013 25 April 2017
General O&M information
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Thermal image analysis
Panel degradation visual inspection
Third party operational data analysis

20. DNV GL © 2013 25 April 2017
What enhanced reliability data would increase the value of the PV
system?
 Reasons to pay more for a PV power plant
– Increased energy production – more revenue
– Lower operating costs
– Reduced risk
 Data that shows higher reliability
– Accelerated life testing of the type included in standards in place and
being developed
 “Holy Grail” would be a test regime that is validated to strongly
correlation with failure modes to provide accurate:
– Component lifetime
– Component degradation
– For modules and inverters/MLPEs
 All additional test data is good – especially third party
 For now, qualification programs help – going beyond certification testing
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21. DNV GL © 2013 25 April 2017
Conclusions
Independent Engineers are looking for
key system characteristics:
–Operate safely
–Perform reliably – for expected lifetime
–Meet energy production expectations
–Require minimal unplanned
maintenance
–Meet financial goals
–Cash flow
–Return on investment
Help keep the solar industry moving
forward!
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22. DNV GL © 2013 25 April 2017
SAFER, SMARTER, GREENER
www.dnvgl.com
Thank you!
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Presenter:
Daniel Pardo, Senior Project Manager
daniel.pardo@dnvgl.com