Technical Due Diligence
Review of wind energy projects
The devil’s in the details. This applies in particular to the complex interfaces of technical, regulatory, economic and financial requirements for wind energy projects. Whether you think about buying individual projects, a project portfolio or even the acquisition of an entire company – we support you with a solid technical due diligence, also during project construction and commissioning. During operation, we act as your Owner's Engineer or Lender's Technical Advisor. We offer our expertise on special questions such as the decision on repowering, continued operation or dismantling at the end of design lifetime.
We are happy to suggest a suitable scope of work in advance. Depending on the stage of your project or size of project portfolio in question, we discuss the scope of work and the review depth with you and adapt both to your individual needs: from the review of existing energy yield assessments up to the technical assumptions in the cash flow model.
With due diligence by Deutsche WindGuard, you are on the safe side. We watch vigilantly over your project. Onshore or offshore.
In wind energy, due diligence stands for an audit of individual projects, project portfolios or entire companies. Special technical tests, such as the evaluation of a turbine model, may also be a part. Due diligence is usually required in the context of transactions or project financing. An essential element is the assessment of compliance, in terms of technical, regulatory and financial requirements, as well as a risk assessment. Technical risks are identified, associated economic consequences are analyzed and proposals for mitigation are made.
Technical Due Diligence for Projects in the Planning Phase
For potential investors or during project financing (Lender's Technical Advisor), we perform a comprehensive due diligence for your project. We particularly focus on aspects such as the project’s technical or economic feasibility, permit issues and stage of development (readiness for building, etc.). You benefit from the in-depth know-how of our experts and the extensive service portfolio of the WindGuard Group. The following core areas are usually covered during a due diligence:
- Compliance of planning/approval
- Permit requirements/operational restrictions
- Expert reports (noise emission reports, environmental impact assessments, etc.)
- Compliance with current standards and guidelines
- Technical losses
- Uncertainties/Risk Analysis
- Turbine Supply Agreements
- Maintenance contracts/maintenance concept
- EPC contracts
- Technical/commercial management contracts
- BoP contracts
- Insurance contracts
- Grid connection contracts
- Wind farm layout
- Site suitability/structural integrity
- Turbine type and manufacturer [LINK to type/manufacturer rating]
- Grid connection
- Balance of plant (foundations, access, wiring, etc.)
- Opine on the ability of BoP/EPC Contractor to fulfil their responsibilities
- Assessment of the technical input parameters (CAPEX, OPEX, etc.)
- Analysis of decommissioning cost
- Opine on the plausibility of the construction schedule and key project milestones (permission, installation, commissioning, etc.)
Due Diligence for projects in the construction phase
We support you during the construction phase of the project and document it with follow-up reports. The specific requirements for this (Lender's/Owner's Engineer) are agreed upon in advance on a case-specific basis. Tasks include, but are not limited to,
- Regular site inspections
- Verification of compliance with project specifications/financing conditions
- Inspection of component manufacturing and delivery
- Control of schedule compliance
- Cost monitoring
- Documentation of construction progress (regular reporting)
- Technical inspections
Due Diligence for projects in the (early) operational phase
Furthermore, we support you during the operational phase of the project, e.g. according to the terms and requirements of an existing credit agreement (Lender's Technical Advisor). If there are any problems with performance during the operation of your wind farm, we will be at your side with advice and assistance. This can also mean a review of guaranteed power performance and sound emission by our accredited measuring departments. The areas of responsibility during the operational phase include, but are not limited to
- Performance analysis (e.g. based on SCADA data)
- Long-term assessment of annual energy yield based on actual production data
- Measurement of power performance and sound emission (verification of warranty compliance)
- End-of-Warranty-Inspections
- Cost monitoring
- Documentation of wind farm operation (regular reporting)
Due Diligence for Operational Wind Farms / Asset Management
If you would like to purchase or sell existing projects, we will provide you with an independent report on the technical condition of the wind farm in question. Our accredited inspection body puts all systems through their paces, including checks of the rotor blades and a video endoscopy of the gearbox. As part of the due diligence, we also review the historical operation documents, analyze O&M costs and determine the long-term expected annual energy yield based on historical production data.
If there are specific technical problems with the operation of your wind farm, e.g. in terms of performance, we will be happy to assist you with a root-cause-analysis and a solution to the problem. You can draw on the many years of experience of our inspection department, measuring department, technical management as well as our know-how in the field of detailed analysis of SCADA data.
As your project approaches the end of design lifetime, we help you to make an informed decision on repowering, continued operation or dismantling.
What distinguishes our due diligence
Deutsche WindGuard has been active in the due diligence department for more than 20 years. As an independent wind energy consultant, many international investors and banks rely on our advice in their investment and financing decisions. In the following we want to highlight a few aspects that distinguish our due diligence service from the competition.
Suiting scope, matching teams, one-stop-shop
No project is like the other. Therefore, we first discuss the appropriate, individual scope of the review ("Scope of Work") with you. Once this has been agreed, we will put together a team of experts tailored to your project. This team will be able to optimally serve the previously defined scope of the audit. Our due diligence team has extensive experience in all relevant fields. You have access to experts from the entire range of services of the WindGuard Group, e.g. our specialist departments for energy yield assessments, wind measurements, technical management or technical inspections. Our employees have hands-on experience and are always up-to-date with the state of the art through their daily work as well as membership in various industry committees. We have the right expert in-house, for all your needs.
Flexibility and fast response times
In the course of every due diligence, new questions and aspects come up at regular basis. Therefore we attach great importance to the continuous exchange with you. We inform you about the latest results and react quickly to changing conditions. In consultation with you, we adapt the scope of work at any time when necessary and support you reliably through the entire transaction process.
Experience - especially in special cases
Deutsche WindGuard has been at home in the wind industry for around 20 years. During this time, we have audited more than 400 projects worldwide with a total capacity of over 11 GW. With this in mind, we are also at your disposal with advice and assistance in the case of special questions and challenges. With our access to experts from a wide range of departments, you have access to one of the most extensive networks in the entire industry. This makes us your designated partner even for demanding tasks and projects.