By - Jon Brown

Wind Project Repowering Due Diligence Summit
August 13-14, 2018 | Denver, CO

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Overview

Repowering wind farms – 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, prompting the wind industry to evaluate existing assets for refurbishment and redevelopment.   These incentives are prompting a full spectrum of wind repower development in the U.S. – from small, partial repowers that involve a simple technical update – to full repowers, where entire wind farms are relocated to a more economical area. 

Some experts estimate that repowering wind turbines can increase the fleet output by 25% and can add 20 years to turbine life from the time of the repower (General Electric).  However, although repowering wind projects holds huge 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. 

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

Agenda

Monday, August 13, 2018

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


8:30 – 10:00 a.m. :: Update on U.S. Wind Repowering Market & Repowering Overview – Purpose and Process

  • Major trends in the wind project repower market
  • 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

Moderator:

Paul Brown, CEO, Insurance Risk Partners

Panelists:

Ravi Bantu, Director, Transmission, Americas, RES Americas

Benjamin Stafford, Commercial Leader, General Electric (GE) Renewable Energy

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

Shariff Barakat, Associate, Nixon Peabody LLP

10:00 – 10:15 a.m. :: Morning Break


10:15 – 11:45 a.m. :: Key Tax Considerations & Financial Modeling for Wind Repowering Analysis

  • Tax issues and qualification for wind repower projects
    • Understanding IRS guidelines for combining old and new assets
    • How to qualify for project development timelines
  • Understanding depreciation for project development timelines
    • Production Tax Credit (PTC)
    • Investment Tax Credit (ITC)
  • Financial modeling for wind repowering
  • 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, Senior Manager – Valuation Advisory Services, Machinery & Equipment, CohnReznick Advisory

Adam Cohen, Partner, Holland & Hart

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


1:00 – 2:15 p.m. :: Legal, M&A and Permitting Issues With Wind Repower Projects

  • Overview of key legal considerations for wind repowering
    • Repowering smaller <1 MW units
    • Repowering larger wind farms
  • Eagle take permitting requirements for wind repower projects
  • 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

James Borgel, Partner, Holland & Hart

Sandi Snodgrass, Partner, Holland & Hart

Rochelle Rabeler, Partner, Holland & Hart

2:15 – 2:30 p.m. :: Afternoon Break


2:30 – 3:30 p.m. :: Insuring Wind Repower Projects & Equipment

  • New and existing turbine technology impacting insurance
  • The interface between contract structure and insurance program design
  • Risk allocation and the role of insurance in project agreements
  • Project finance agreements and credit risk
  • External factors impacting a fluctuating insurance market for major equipment

Paul Brown, CEO, Insurance Risk Partners

Josiah Daniel, Vice President, Insurance Risk Partners


3:30 – 5:00 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


Tuesday, August 14, 2018

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


8:30 – 10:00 a.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

Jessica O’Connor, Consulting Engineer & Data Analyst, ArcVera Renewables

Eric Soderlund, Senior Manager, Sargent & Lundy LLC

10:00 – 10:15 a.m. :: Morning Break


10:15 – 11:00 a.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

Mourad Riad, Structural Engineer, Sargent & Lundy LLC


11:00 – 11:45 a.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

Benjamin Stafford, Commercial Leader, General Electric (GE) Renewable Energy

11:45 a.m. :: Program Adjourns

Workshop

Comprehensive Risk & Liability Due Diligence: Insuring Wind Repower Projects

Tuesday, August 14, 2018

12:30 – 1:00 p.m. :: Registration

1:00 – 4:30 p.m. :: Workshop Timing

 Overview

This workshop will provide a detailed discussion on the role of comprehensive risk management due diligence for wind repower projects, focusing on insurance and liability coverage needed for technical, equipment, contracting and performance aspects of wind repower projects. 

Learning Outcomes

  • Evaluate the unproven dynamics of wind repower projects that require special risk management and insurance services
  • Evaluate key equipment risks and possible failures in small and large wind repowering sites
  • Discuss how to identify, quantify, and mitigate risk efficiently and cost-effectively

Agenda

Overview of Risks & Concerns in Wind Repower Projects

  • Material change in risk involved in repowering
  • Risks of new and old technology combinations
  • Unproven dynamics of repower projects
  • Other underwriter, insurance & contracting concerns

Evaluating Equipment Risks with Large Repower Projects

  • Risks of changed turbine equipment (blade length, weight and profile)
  • Risks of changed tower size
  • Risks associated with changes in force and load

Evaluating Equipment Issues & Risks with Small Repower Projects (<1 MW)

  • Corrugated style towers

Risk & Liability Assessment, Mitigation, and Allocation for a Repower Site

  • Damage to existing property versus damage to repowering equipment during installation and operation
  • Allocating responsibility for risks between owners and contractors
  • Contractual provisions – warranty, indemnity, force majeure, risk of loss, limitation of liability
  • Dovetailing contractual protections and insurance coverages

Coverage considerations

  • New versus existing property
  • Defective design, specification, materials, and/or workmanship
  • Valuation clauses
  • Revenue and tax incentive protections
  • Lenders’ concerns

Loss Adjustment for Insurers and Investors

  • Common engineering failures in wind repower projects
  • Analyzing and adjusting for associated losses

Workshop Instructors

PAUL BROWN/ CEO/ INSURANCE RISK PARTNERS

A co-founder of Insurance Risk Partners, Paul Brown possesses more than 25 years of experience as a broker and consultant to the power generation and energy sectors.  He has designed, implemented and supervised comprehensive risk management programs for a wide variety of companies with investments in all aspects of the power and energy industries. Paul Brown brings his expertise in a diverse portfolio of worldwide power and energy operations that forms the foundation of IRP’s Power and Energy Practice.  His expertise in complex property risks, creative authorship of widely accepted policy language, and his reputation for ardent client advocacy on claims have earned him broking and consulting work on a global scale.  Working with domestic and international insurance markets, Mr. Brown has developed risk management and insurance programs for various infrastructure projects across North and South America, Europe, Asia and Australia.  Paul Brown was previously the Managing Director of Arthur J. Gallagher’s Power and Utility Practice and  General Counsel at Meyers-Reynolds & Associates, Inc.

JON HARDING/ LOSS ADJUSTER/ RENEWABLE ENERGY LOSS ADJUSTERS

Jon Harding is a claims professional with over twenty-five years’ experience worldwide handling multiple classes of insurance claims for Insurers and Reinsurers alike. He has experience working on multi-million dollar Renewable Energy, Traditional Energy, Property and Transportation and liability losses globally as well as extensive Risk Surveying experience. Jon Harding is a Founder at Adjusting Services International (ASi) and Specialist Loss Adjuster at Renewable Energy Loss Adjusters (RELA). ASi entered into a binding agreement with RELA to provide independent loss adjusting, claims handling and surveying services within the USA, Canada and other territories.

JATIN SHARMA/ PRESIDENT/ GCUBE INSURANCE SERVICES, INC.

Jatin Sharma is currently the President at GCube Insurance Services, Inc.  GCube Insurance is a lead provider of renewable energy insurance services offering comprehensive property and liability coverage for utility scale projects around the world, focusing on marine, property, and parametric insurance for utility scale renewable energy projects.  Before coming on as President, Mr. Sharma was previously Head of Offshore/Business Development Leader and then Head of Business Development at GCube Insurance.  He holds a MSc in Climate Change Management from Birkbeck, University of London.

 

Speakers

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

Ravi Bantu, Director, Transmission, Americas, RES Americas

Paul Brown, CEO, Insurance Risk Partners

Josiah Daniel, Vice President, Insurance Risk Partners

Jessica O’Connor, Consulting Engineer & Data Analyst, ArcVera Renewables

Mourad Riad, Structural Engineer, Sargent & Lundy LLC

Benjamin Stafford, Commercial Leader, General Electric (GE) Renewable Energy

Eric Soderlund, Senior Manager, Sargent & Lundy LLC

Fernando Sosa, Senior Manager – Valuation Advisory Services, Machinery & Equipment, CohnReznick Advisory

Location

Embassy Suites Denver – Downtown Convention Center
1420 Stout St
Denver, CO 80202

To reserve your room, please call 1-303-592-1000
Please indicate that you are with the EUCI group to receive the group rate. Use GROUP CODE EUC to get the group rate.

Room Rate:

The room rate is $199.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of August 12 – 13, 2018.

Rate Available Until:

Make your reservations prior to July 12, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.

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