Power project developers often negotiate the engineering,
procurement, and construction agreement (EPC) at the same time as
other project contracts. Depending on the project type and
contracting paradigm, a developer (owner) must align key EPC terms
with some or all of the following: (1) power purchase
agreement (PPA), (2) interconnection agreement, (3) major
supply agreements, and (4) operations and maintenance
(O&M) agreement.
This article will evaluate the EPC as an exercise in risk
allocation, and then highlight issues for alignment with the PPA.
In future articles, we will identify areas that overlap between the
EPC and other project contracts.
I. EPC Agreement and Risk Allocation
