Lifecycle Quality Best Practice Guidelines
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03
Stakeholders
There are several stakeholders involved at various stages in the lifecycle of a solar power plant. Having a common understanding of each one’s role will help ensure clear lines of responsibility and accountability throughout a project. Whilst separate definitions are given for all these terms, that is not to say that a single entity cannot perform multiple functions. For example, an EPC service provider can also be an Independent Power Producer, and an O&M service provider at the same time, throughout the lifecycle of one project.
| Aggregator | An entity that combines multiple customer loads or generated electricity for sale, purchase, or auction in any electricity market. This is useful for Asset Managers and O&M service providers as aggregators can provide them access to electricity markets, balancing markets, and other future flexibility markets, helping them to sell power produced by distributed assets or stockpiled in storage assets and unlock new revenue streams from providing flexibility services. |
| Asset Manager | The service provider responsible for the overall management of the SPV, from a technical, financial, and administrative point of view. The Asset Manager ensures that SPV and service providers fulfil their contractual obligations. Asset Managers also manages the site to ensure optimal profitability of the PV power plant (or portfolio of plants) by supervising energy sales, energy production, and O&M activities. Asset Managers furthermore ensure the fulfilment of all administrative, fiscal, insurance and financial obligations of the SPVs. Asset Managers review the performance of the sites regularly and report to Asset Owners and seek to balance cost, risk, and performance to maximise value for stakeholders. In some cases, when the SPV belongs to large Asset Owners, such as utilities or Independent Power Producers (IPPs), the AM activity is done in-house. For more information, see SolarPower Europe’s Asset Management Best Practice Guidelines (available at www.solarpowereurope.org). |
| Asset Owner | Asset Owners are the stakeholders that finance the EPC phase, and the overall operation of a PV power plant. They can be a single investor or part of a group and can be classified as either private individuals, investment funds, IPPs, or utilities. The preferred model for asset ownership is an SPV, i.e., limited liability companies, specifically incorporated for building, owning, and operating one or more PV plants. In some cases, when the SPV belongs to large Asset Owners, such as utilities or IPPs, some, or all, of the roles of Asset Owners, Asset Managers, project developers, O&M and EPC service providers may be done in-house. |
| Authorities | Local (e.g., the municipality), regional (e.g., the provincial or regional authorities supervising environmental constraints), national (e.g., the national grid operator) or international (e.g., the authors of a European grid code) bodies with competence in areas that relate to stages of a project’s lifecycle. |
| Data-related service providers | Companies that provide hardware and software solutions such as monitoring systems, asset management platforms, CMMS, or ERP. Other players in this segment provide advanced data analysis by using site data to calculate KPIs (analytical tools) or provide a repository for key site information whilst facilitating some administrative workflows. Data is crucial to ensuring that Owners, Asset Managers and O&M service providers are aware of on-site conditions, including equipment behaviour. It is vital for ensuring that prompt action is taken once a fault has been identified and providing important information on potential areas of underperformance. There is a tendency in the industry to opt for solutions that integrate all the above-mentioned systems and platforms into one software. There are several advantages to this approach, and it can be considered a recommendation. |
| Distribution System Operator (DSO) | Entity responsible for distributing the electricity from the transmission grid to end users (households/businesses) and maintaining the distribution networks. |
| EPC service provider | The entity in charge of the engineering, procurement, and construction of a solar power plant. An EPC service provider is responsible for delivering a complete PV power plant to the Asset Owner, handling all aspects from seeking authorisation for the construction to commissioning and securing a grid connection. Their role is very important in procuring quality components and ensuring quality installation, which have a large impact on the long-term performance of solar power plants. Many EPC service providers also offer O&M services to the solar power plants they develop. They often provide a 2-year performance warranty period lasting from the COD until the delivery of an FAC. In certain mature markets the role of the EPC service provider is increasingly split between different entities. For more information, see SolarPower Europe’s EPC Best Practice Guidelines. |
| Independent Power Producer (IPP) | A producer whose principal activity is to generate electric energy with the sole intention of its sale to distribution business entities, or, via a third-party electric power system, to customers. |
| Lender | The lender or debt provider (financing bank) is not considered as an Asset Owner even if the loans are backed up by securities (collateral). The lender normally measures the risk of providing debt service based on the debt service coverage ratio (DSCR) of an Asset Owner. The role of the lender is evolving, with enhanced considerations and involvement regarding the requirements for the debt provision. Some projects also have a mezzanine lender providing junior debt services, where another layer of debt is provided at a higher risk than in the original lender’s case. |
| Off-taker | The entity that pays for the electricity produced. This role is still evolving and is often subdivided according to national renewable power support schemes: • The state or national grid operator / electricity seller(s), or specific authorities for renewable energy (e.g., GSE in Italy) in an FiT scheme • Energy traders or direct sellers in a direct marketing scheme • End customers in schemes that support autonomy in energy supply |
| O&M service provider | The entity that responsible for the O&M activities as defined in the O&M contract. In some cases, this role can be subdivided into: • Technical Asset Manager, serving as an interface between some of the technical O&M activities and the Asset Owner. This person is responsible for providing high-level services such as performance reporting to the Asset Owner, managing contracts, and managing invoicing and the warranty agreement. • Operations service provider is responsible for the monitoring, supervision, and control of a PV power plant alongside maintenance coordination. • Maintenance service provider carries out maintenance. A comprehensive set of O&M activities (technical and non-technical) is presented in SolarPower Europe’s O&M Best Practice Guidelines. |
| Project developer | The Project Developer is the entity responsible for carrying out the actions described under “development (project development)” in chapter 2 of these guidelines. |
| Specialised suppliers | Providers of specialised services (e.g., technical, or operational systems consulting) or hardware (e.g., electricity generating components or security systems). |
| Technical advisors and Engineers | Individuals or teams of experts that provide specialised services (e.g., detailed information, advice, technical consulting). Their role is important as they ensure that procedures and practices are robust enough – according to standards and best practices – to maintain high performance levels from a PV plant. Technical advisors can represent different stakeholders (e.g., investors and lenders) but often an independent engineer is employed in an attempt to minimise the risk of bias towards any party. |