Asset Management Best Practice Guidelines (Version 2.0)

The journey of an AM service provider starts with a handover (or on-boarding) process. Whether an asset has just completed its construction phase, as described in Chapter 3, or has been operational for some time, the handover process is critical to ensure the ongoing management of the asset. While the key steps and responsibilities of an AM service provider during the handover from construction is described in Chapter 3, this chapter will address the importance of the onboarding process when an operational asset is transferred from an Asset Manager to another or when an Asset Owner decides to internalise the AM services.

Handover processes are often cumbersome primarily due to the volume of documents and data involved and the need for the receiving AM to learn about asset’s history, nuances and current health status to ensure appropriate and continuous management is provided. Depending on the number of assets being on-boarded, the process could last from a few weeks to a few months, it is therefore important that the receiving Asset Manager ensures that appropriate project management resources are dedicated to this process. 

Whilst a significant part of the workload associated to the handover process lies with the receiving Asset Manager (whether third-party service provider or within the owner’s organisation), it is critical that the receiving Asset Manager secure appropriate assistance from the incumbent AM to ensure appropriate flow of information and documents as well as a suitable transfer of the asset history and outstanding issues lists where applicable.

A thorough handover process is a key enabler for an AM service provider. As described more in detail in this document, the exchange of information and documentation is necessary to allow AM services being carried out appropriately. In this context, the on-boarding process is the cornerstone of the AM service. The key areas of any handover process are detailed below.

5.1. Site data and information

The aim of the Asset Manager is to collect and map the site static details as well as the dynamic information in an asset register (ideally in a dedicated database), effectively creating a “single source of truth” which provides continuity of management for the benefit of the Owner.

• Static data: This information comprises a full suite of site data ranging from contact details of the key contractual counterparty to identification numbers of the installation (for instance grid connection identification codes), key corporate information (from VAT numbers to company registration numbers and directorships), key equipment and components details as well as key contractual terms.
• Dynamic information: This includes information that provides the history of site. A collection of key events, incidents, inspections, tests and ad hoc studies (above characterised by a certain level of materiality) that have shaped the lifecycle of the site since commissioning as well as currently outstanding events that will require immediate action by the new AM. This type of information provides a story line and history of the site which is incredibly relevant to the AM as it constitutes the basis of the understanding of the site technical and commercial behaviour and will educate management decisions in the next phases of the site lifecycle.

The table below summarises the key categories of site information and data that should be part of the on-boarding process.

TABLE 8 - KEY CATEGORIES OF SITE INFORMATION TO BE COLLECTED BY INCOMING ASSET MANAGER

 ^{*The list is not exhaustive and provides only some examples for each category}

5.2. Document acquisition and management

The solar PV market has developed complex contracting structures for solar PV sites, often driven by the requirements of investors, lenders and funders. Documentation and contracts management is therefore at the core of any AM service as it sets the boundaries and shapes the services to be provided. During the handover process two main tasks are carried out with regards to the documentation management:

• Document checklist: The Asset Manager should be able to advise a minimum and essential set of documents required to enable the normal carrying out of the services as well as a wider selection of documents which might be considered as additional. This does not comprise contracts only but also technical documents from construction and operations documentation. The outcome of this process will identify and gaps and ensure that documentation is properly migrated in the document management system agreed between the owner and the Asset Manager. 
• Document checks:  The handover process should allow enough time for the Asset Manager to run through the essential documents to both (i) collect static information that will feed in the asset register; (ii) understand and map the key milestones and process required by the different contracts; and (iii) learn the history of the site.

The table below summarises some of the key documents to be collected and reviewed during the on-boarding process. These documents originate from the construction and operational phases:

TABLE 9 - KEY DOCUMENTS TO BE COLLECTED AS PART OF A PROJECT HANDOVER

5.3. System and tools

There are many software and data solution providers in the market and therefore, it is important to recognise that data might need to be migrated between systems during the on-boarding process; this activity should not be underestimated and will have a direct impact on the accessibility and usefulness of the data. This dependency could affect asset information included in an asset register and the document management system but also the financial information (bookkeeping, ledgers and financial forecasting).

The owner and receiving Asset Manager will need to decide which systems and tools to use, should they not wish to deploy the systems used by the incoming asset, or ensure appropriate data mapping and communication protocols between the systems are established. Both parties should account for significant support from the respective IT teams to ensure that the migration takes place smoothly and successfully. For more information on Asset Management Platforms, please refer to Chapter 10, Data management and high-level monitoring.