By - Jon Brown

Wind Repower & Retrofit Due Diligence Summit
February 11-12, 2019 | La Jolla, CA

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Overview

The National Renewable Energy Laboratory has estimated that U.S. wind repowering investments could reach $25 billion a year by 2030.   Wind repowering – replacing older turbines or other components on a wind farm to improve power capacity and generation – is increasingly becoming an attractive option for developers, owners and investors to profit off existing wind project assets.  Federal production tax credit incentives, technical advancements in wind turbine technology, and opportunities for increased performance and revenues are all driving the repower movement.  Moreover, North America’s aging wind fleet is causing a surge in operations and maintenance spending from the wind industry, with project owners spending up to $4 billion annually.  Repowering wind farms is a viable solution to manage these increasing O&M costs, all the while improving capacity and revenues.   All these incentives are prompting the wind industry to evaluate a full spectrum of repower development – from a range of ‘partial’ repowers that involve simple to more complex technical updates – to full repowers, where entire wind farms are decommissioned and replaced with new turbines in the same project area, or relocated to a more economical area. 

This emerging repower movement is an attractive opportunity for the wind industry, with experts estimating that repowered turbines can increase fleet output by 25% and add 20 years to turbine life (General Electric).  However, although repower projects holds big potential, there are major challenges involved that must be evaluated when considering or undergoing the repower process.  Each wind farm is unique and will require a critical due diligence review of financial, technical, and legal considerations to determine if repowering is: 1) a profitable option; and 2) what type of upgrades are necessary to optimize wind generation resources and revenues.

This program is designed to provide expert insight on the repower development market, providing holistic coverage of the financial, technical, and legal due diligence items involved in repowering wind farms, and insight on evaluating what constitutes as a bankable repower project.  This instructional symposium will be relevant to both industry veterans and those new to the business. 

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Learning Outcomes

  • Assess key technical, financial, and legal due diligence items related to wind project repowering
  • Identify key trends in U.S. wind repower market
  • Examine key tax and project finance concerns and qualification opportunities for wind repower projects
  • Assess key legal considerations, construction contract provisions, and insurance issues for wind repowers
  • Review wind repower economics and what constitutes a bankable repower project
  • Discuss project developers who are evaluating repowering options and their analytical processes
  • Assess the interconnection process for repowering wind farms
  • Analyze technical due diligence for wind energy assessment for repowering valuation
  • Identify methodology for conducting a comprehensive independent engineering (IE) review for wind repower projects

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this conference and 0.3 CEUs for the workshop.

 

Agenda

Monday, February 11, 2019

12:30 – 1:05 p.m. :: Registration


1:05 – 3:00 p.m. :: Update on Wind Repower Market Landscape & Evaluating Bankable Project Opportunities

  • Major trends in the wind project repower market
    • New technologies, taller turbines & longer blades
    • Rising costs of O&M for aging wind fleet
    • Re-qualifying for tax credits
  • Types of repowering
    • Full vs. partial repower
    • Variances of partial repowering
  • Benefits of repowering
  • Project economics
    • Analyzing whether the site is appropriate for repowering
    • Logistics of considering whether a site can be repowered
  • Overview of due diligence for repowering projects
    • identifying key issues, questions and features

Carter Atlamazoglou, Senior Director – Global Clean Energy, FTI Consulting

Ravi Bantu, Director, Transmission, Americas, RES Americas

Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

Jim Duffy, Partner, Nixon Peabody LLP

3:00 – 3:15 p.m. :: Afternoon Break


3:15 – 4:15 p.m. :: Legal and M&A Issues with Wind Repower Projects

  • Overview of key legal considerations for partial & full wind repowering
    • Larger or taller equipment issues
    • Wind resource
    • Contract restrictions
    • Community response
    • Decommissioning
  • Legal contract structuring for repowering agreements
    • Operating agreement review (O&M, PPA, Interconnection)
    • Contracting for new vs. existing equipment
    • Ensuring that key provisions of development contracts work together
  • Legal contract structuring for repowering agreements
    • Operating agreement review (O&M, PPA, Interconnection)
    • Key construction contract provisions
    • Ensuring that key provisions of development contracts work together
  • Legal due diligence for wind repower M&A transactions

4:15 – 5:15 p.m. :: Developer Perspective: Analyzing Project Potential & Interconnection Aspects of Repower Projects

  • Evaluating the repower market and possible expansion of RES Americas’ development services in wind repowering
  • Key construction and engineering aspects of wind project repowering
  • Analyzing if a wind asset is bankable for a repower and resale
  • Maximizing the value of wind generation capacity with existing ground assets
  • Interconnection process for repowering wind
    • How it varies from a typical interconnection process
    • What ISO’s and RTO’s are doing for repower interconnection

Ravi Bantu, Director, Transmission, Americas, RES Americas

5:15 p.m. :: Program Adjourns for the Day


Tuesday, February 12, 2019

8:00 – 8:30 a.m. :: Continental Breakfast


8:30 – 10:00 a.m. :: Environmental, Land Use and Permitting Considerations

  • Types of permits required for repower projects
  • Permitting and design challenges associated with replacing and upgrading turbines
  • Timelines for obtaining approvals
  • Zoning and entitlement
    • States vs. local permitting
  • NEPA/CEQA
  • Community issues
  • Wildlife studies and government agency (local and federal) interactions
  • Water use and wetlands
  • Cultural resources
  • Native American consultation
  • Special issues

Eric Hansen, Director – Environmental Services, Westwood

10:00 – 10:15 a.m. :: Morning Break


10:15 – 11:00 a.m. :: State Regulator Approaches to Wind Repower Projects

  • Variations in state regulations and rules – what to be aware of in state of operation
  • Establishing contacts within all appropriate agencies
  • Building a successful developer – regulator relationship for project approval
  • Issues and areas of concern for regulatory approval of repower projects
    • Noise modeling
    • Property owner participation
    • Wildlife and permitting
  • Tips for developer due diligence for regulator review of repower projects
    • GIS/maps
    • Surveys
    • Processes and timelines
    • Input from developer partners
      • Biologists
      • Lawyers
    • Who should you bring to the table?

Richard Davis, Environmental Review Manager, Minnesota Department of Commerce


11:00 – 11:45 a.m. :: Financial Modeling for Wind Repowering Analysis

  • Financial due diligence for potential wind repower projects
    • Grid interconnection
    • Balance of plant
    • Tax credit qualification
    • Pre-installation of balance of plant
    • Transmission rights and PPAs
  • Acquiring older facilities at a discount
  • Capitalizing on good existing wind sites
  • Using existing infrastructure
  • What investors are looking for in a repower project

Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

11:45 a.m. – 1:00 p.m. :: Group Luncheon


1:00 – 2:30 p.m. :: Energy Assessment & Independent Engineering (IE) Review for Wind Projects

This session will discuss key technical and engineering considerations for wind repowering farms, evaluating how to determine if turbines on a wind farm will work and are certified to work.  It will review seven key areas that owners, investors, lenders and engineers should analyze to maintain ongoing operations and plan for successful repowering:

  • Wind turbine foundations
  • Electrical balance-of-plant
    • Reactive compensation
    • Projected expected life
    • Ampacity overload analysis
    • Harmonics/sub synchronous resonance (SSR)
    • Interconnection Agreement (IA)
  • Wind turbine towers
    • Mechanical loads analysis
    • Protective coating maintenance
    • Anchor bolt maintenance
  • Wind resource assessment
  • Wind turbine technology and site suitability review
  • Commercial and permitting review
  • Operations and Maintenance (O&M) cost assessment

Eric Soderland, Senior Manager, Sargent & Lundy LLC

2:30 – 2:45 p.m. :: Afternoon Break


2:45 – 3:45 p.m. :: Wind Turbine Foundations Analysis – Deep Dive

The integrity and capacity of the existing foundations are the most critical considerations for the long-term success of a repowering effort.  Specifically, owners and tax-equity investors have demanded a thorough, detailed, and comprehensive review of existing foundations, including strength, serviceability, and fatigue analysis.  This session will discuss key discoveries and outcomes from extensive modeling research conducted on a variety of wind turbine foundation designs, and key methodology steps needed to assess the risk of foundation failure:

  • Determining the risk of wind turbine foundation failure
  • Reviewing original foundation design
  • Analyzing design consideration for fatigue loading
  • Assessing condition of exposed (above ground) portion of foundations
  • Below-ground foundation inspection
  • Cracked versus uncracked properties
  • Skewed wind load test
  • Site specific design loads
  • Exposed foundation inspection findings
  • Project’s quality assurance and quality control (QAQC) documentation to assess quality of workmanship and adherence to wind turbine and foundation design specifications from initial construction

Amr Sallam, Sr. Principal & Sr. Engineering Consultant, Terracon


3:45 – 4:30 p.m. :: The OEM Perspective on Wind Repower Projects

  • Construction and installation experiences for repower projects – lessons learned
  • Analyzing long term integrity of existing towers and foundations
  • Conducting a thorough engineering analysis of changes in force and load
  • Methodology for engineering solutions of repower options
    • Part replacements
    • Equipment sizing
  • Risk management
    • Warranties
    • Third party certification
    • Back end services to consider

Representative, General Electric (GE) Renewable Energy

4:30 p.m. :: Program Adjourns

Workshop

Tax Issues & Qualification for Wind Repower Projects

Monday, February 11, 2019

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 – 11:45 a.m. :: Workshop Timing

Overview

Tax credit qualification for renewable projects has traditionally been applied to new installations and developments.  However, project owners and investors are increasingly seeing the financial opportunity to repower or retrofit existing wind assets, as a means to re-qualify these assets for another ten years of credits.  A tax credit qualified repower project is an attractive opportunity for the wind industry to greatly improve increased annual energy production, while deploying significantly less capital. 

This workshop will provide in-depth insight into the special tax issues associated with wind repower projects.  It will focus on how to ensure a wind repower project ‘pencils out’ for tax qualification, and ensure the repower is a bankable and worthwhile development endeavor. 

Learning Outcomes

  • Review special tax issues associated with wind repower projects
  • Evaluate tips to qualify a wind repower project for tax credits and optimize overall financial accounting aspects
  • Examine case studies and financial models for wind repower project bankability

Agenda

  • Overview of tax incentives for renewable energy
    • Production Tax Credit (PTC)
    • Investment Tax Credit (ITC)
    • Recent extension of PTC and ITC and relevant changes
  • Wind project financial model & tax qualification review
  • Financial opportunities and benefits for wind repower projects
  • Tax considerations and qualification for wind repower projects
    • Understanding IRS guidelines for combining old and new assets
    • Relationship between installed capacity and overnight costs
    • Future technological advancements
    • How to qualify for project development timelines
  • Tax credit issues specific to repowered facilities
    • “80/20 Rule”
    • Safe Harbor applications
    • Depreciation issues
  • Determining eligibility for tax credit

Instructors

Jim Duffy/ Partner/ Nixon Peabody

Jim Duffy is a partner in the Boston office of the national law firm, Nixon Peabody LLP.  He serves as the Chair of the firm’s Renewable Energy Tax Credit Team and concentrates his practice on structuring and closing transactions involving federal income tax credits and other significant federal and state income tax incentives, including Production Tax Credits for wind and other forms of renewable energy, Energy Investment Tax Credits for solar and certain other forms of renewable energy, as well as Treasury cash grants in lieu of Energy Investment Tax Credits.  His practice also covers New Markets Tax Credits, Historic Rehabilitation Tax Credits, and Low-Income Housing Tax Credits.  He has represented numerous developers, investors, syndicators and lenders in structuring and closing renewable energy and other transactions.  He is a member of the American, Massachusetts, and Boston Bar Associations. He has served as the chair of the Equity Finance Committee of the Real Estate Section of the Boston Bar Association and as a member of the Real Estate Steering Committee of the Boston Bar Association and is admitted to practice in Massachusetts. He is a graduate of the University of Rhode Island, B.A., summa cum laude (1978), and The Harvard Law School, J.D. (1981). 


Shariff Barakat/ Project Finance Attorney/ Nixon Peabody

Shariff Barakat is a project finance attorney focused on domestic infrastructure and renewable energy projects at the national law firm, Nixon Peabody LLP. He represents developers, sponsors, tax-equity investors, lenders and other stakeholders in the acquisition, development and financing of power generation projects.  Shariff Barakat focuses on representing clients involved in the acquisition, development and financing of renewable energy power generation projects, with a particular focus on tax equity financing.  He handles due diligence review, drafting and negotiating primary transaction documents and providing tax advice and opinions, as well as overall project management.  Mr. Barakat’s experience spans billions of dollars in closed and funded investments supporting gigawatts of renewable energy, including large and small utility-scale solar and wind projects, large and small residential solar portfolios, community solar projects, C&I solar projects, geothermal projects and biomass projects.  Prior to joining Nixon Peabody, he worked at a large consulting firm and provided tax advice and opinions, financial modeling services and valuation services in connection with renewable energy projects.  He also provided tax advice and opinions on a number of large M&A and tax-advantaged leasing transactions.

Speakers

Carter Atlamazoglou, Senior Director – Global Clean Energy, FTI Consulting

Ravi Bantu, Director, Transmission, Americas, RES Americas

Richard Davis, Environmental Review Manager, Minnesota Department of Commerce

Jim Duffy, Partner, Nixon Peabody LLP

Eric Hansen, Director – Environmental Services, Westwood

Amr Sallam, Sr. Principal & Sr. Engineering Consultant, Terracon

Eric Soderland, Senior Manager, Sargent & Lundy LLC

Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

Location

San Diego Marriott La Jolla

4240 La Jolla Village Dr.

La Jolla, CA 92037

Reserve your room:

please call 1-800-228-9290

Room Block Reserved For:

Nights of February 10 – 11, 2019

Room rate through EUCI:

$179.00 single or double plus applicable taxes
Make your reservations prior to January 21, 2019.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, January 25, 2019
Standard RateAttendees
Wind Repower & Retrofit Due Diligence SummitUS $ 1195.00US $ 1395.00

This event has the following workshops:

Tax Issues & Qualification for Wind Repower ProjectsUS $ 495.00
US $ 595.00

Take advantage of these discounts!

  • Attend the Conference and workshop and pay US $ 1,595.00 per attendee (save US $ 95.00 each)

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 11, 2019 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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