PART 2 - EPC CONTRACTS - GENERAL PRINCIPLES AND KEY TOPICS
THE CONTRACTUAL STRUCTURE
The diagram below illustrates the basic contractual structure of
a project financed renewable energy project using an EPC
Contract.
The detailed contractual structure will vary from project to
project. However, most projects will have the basic structure
illustrated above.
We note that in some renewable energy projects, particularly
wind farms or hydro plants, the EPC Contract may be split into an
Equipment Supply Contract (such as a Wind Turbine Generator Supply
Contract) and a Balance of Plant ("BOP")
Contract, where the performance guarantee element is dealt with in
a Warranty Operating and Maintenance Agreement
("WOM"). The principles are essentially
the same as set out below and we will discuss specific components
later in this paper.
