26 Dec ADVANTAGES OF EPC PROJECTS
According to a report of the Spanish Electricity Network, in 2015 clean energy contributed 37.1% of total electricity production to the national electricity mix, higher than resources such as coal and nuclear energy. Does this mean that the future is in renewable? So far, a strong commitment to clean energy is being generated in countries’ commitment to reducing CO2 emissions to contribute to the sustainable development of the planet. Portugal, Germany, and China are some of the countries that have excelled in the production of renewable energies during this 2016.
But still we need much to be done in the field of renewable energies in Spain; it is true that there is a positive evolution towards sustainable consumption. In this sense, renewable projects are an increasingly sought-after option for individuals and companies, which because of their lack of knowledge, leads them to demand companies that control all the development of such projects, so-called EPC projects.
Renewable energy EPC projects (Engineering, Procurement and Construction), also known as “turnkey” projects, are projects in which the contractor seeks and provides all the human and material resources for the development and construction of renewable plant based on wind and photovoltaic energy mainly. The brunt of the project rests with the contractor, who will deliver the project ready to be exploited by the client.
The advantages of EPC projects are that less time, resources and effort are devoted to the work, since the contractor is the one who coordinates the different agents involved in the process. A team of specialists and technicians face the situation and solve any problems that arise. The technical team ensures the quality of their work and the execution times are fixed from the beginning of the contract, so there is a delivery commitment.
By having the same team coordinate all the work, EPC projects become a cheaper option than the traditional option, which consists of contracting the development and execution of the renewable project separately, commissioning different agents. This is another of its most favorable advantages.
That is, we are investing in a sustainable and environmentally friendly project, as well as economical, with guarantees of construction and durability. For example, in the case of photovoltaic energy for self-consumption, the life of the project is a minimum of 25 to 30 years and it is from 7 to 10 years when the installation is amortized.
So investors in an EPC project will recover the investment in less than half the lifetime of the facility, saving on electricity for 15 years guaranteed. During those years the EPC contractor is usually the person in charge of the maintenance of the constructed facility. This represents another great advantage, since the team knows all the technical details of the project, being able to solve the incidents that are generated over the years in a more direct way, saving time and money.