EPC India Guidelines

Engineering,
Procurement and
Construction (EPC)
Best Practice Guidelines
India edition
Engineering, Procurement and Construction

(EPC) Best Practice Guidelines 1
2 (EPC) Best Practice Guidelines
Foreword
Welcome to the India edition of the Engineering, Procurement and Construction (EPC) Best Practice
Guidelines. Building on the first edition of SolarPower Europe’s EPC Best Practice Guidelines, this edition
is adapted to the Indian context. It is a joint effort between SolarPower Europe, the National Solar Energy
Federation of India (NSEFI), and several solar PV experts active in India, supported by the EU-India Clean
Energy and Climate Partnership.
India is the fifth largest solar nation globally with over 45 GW of installed solar capacity. This is due to grow
rapidly in following years as the country looks to achieve an ambitious goal of 450 GW of renewable energy
power generation capacity by 2050. Key to India becoming a solar success story will be showing that PV
power plants can provide a reliable, cost-effective, and sustainable alternative to traditional power generation
sources. Putting the best processes in place and getting the fundamentals right during the project design,
engineering, procurement, and construction phases is key to improving the competitiveness and reliability
of solar PV technology.
To address the need for industry-wide best practices for EPC, SolarPower Europe joined forces with NSEFI,
supported by the EU-India Clean Energy and Climate Partnership (CECP), to develop the Indian edition of the
EPC Best Practice Guidelines. A joint Indian-European EPC working group was launched in September 2021,
assembling 31 leading solar experts from India and Europe. The kick-off meeting was followed by a series
of online working meetings, in which we updated the first edition of SolarPower Europe’s EPC Best Practice
Guidelines to reflect the market and business conditions in India. The result is a guide that we hope will help
Indian solar stakeholders improve the quality of the EPC segment. This document is aimed at EPC service
providers, and other parties involved in the construction of solar power plants, such as Asset Owners and
investors, lenders, technical advisors, and other service providers. It will help to establish common standards
and increase transparency in the sector.
In the Indian edition, all the chapters of the original have been thoroughly reviewed and revised with a focus
on the unique aspects of the country. The recommendations have been updated with reference to the Indian
Grid Code, with key detailed requirements therein. The Environment, Health & Safety chapter has been adapted
to include key national legislation on occupational health & safety to ensure that EPC service providers are
aware of their obligations towards their staff. The guidelines give details on where to acquire the relevant
environmental consents for solar PV projects. It also highlights key aspects of the finance architecture in
India, detailing what bonds and bank guarantees EPC service providers need to issue. Similarly, the guidelines
have been adapted to include the relevant Indian standards governing component quality, and more detailed
best practice recommendations on the handover of monitoring software to O&M service providers.
We encourage all solar operators in India to consider these Guidelines and to reach out to NSEFI with any
questions or suggestions.
Walburga Hemetsberger Subrahmanyam Pulipaka

Chief Executive Officer, SolarPower Europe Chief Executive Officer, National Solar Energy
Federation of India

Chair of the SolarPower Europe Lifecycle Quality Workstream: Adele Ara, Lightsource bp
Vice-Chairs of the SolarPower Lifecycle Quality Workstream: Timo Moeller, NovaSource Power Services; Alden Lee, ABO Wind
Coordinator of the SolarPower Europe Lifecycle Quality Workstream: Benjamin Clarke, SolarPower Europe
Contact: info@solarpowereurope.org
Contributors: Alok Kumar, Renew Power | Ankit Sharma, Efinity Global | Ankur Pathak, Mahindra Susten | Aravinth Rengaraj, Enel | Ayush Shukla, NSEFI
| Benjamin Clarke, SolarPower Europe | Bhupesh Trivedi, Navitas Solar | Brijesh Gupta, AMPL | C.K. Sridhara, TÜV Rheinland | Dan Sokolov, SolarPower
Europe | Edwin Koekkoek, EU Delegation to India | Harry Finnigan, Statkraft | Hiten G. Parekh, SunEdison | Jitendrya Mishra, Enel | Kotha Naresh, Enel
| Kulpreet Guglani, Livguard | K.V. Nachiappan, SwelectK. Sundaravel, Enel | Mohammad Aamir, Enel | Manohar Das, ib vogt | Manoj Gupta, Fortum |
Máté Heisz, SolarPower Europe | Patricio Sanchez, PI Berlin | Praveen Vaishnav, Renew Power | Rajesh Shrivastava, Aditya Birla Group | Rakesh Shah,
Greenko | Ralph Gottschalg, Fraunhofer CSP | R.K. Sharma, Refex Energy | Shally Gupta, NSEFI | Surajit Chanda, Aditya Birla Group | Tusshar Sharma,
NSEFI | Vaibhav Singh, PwC India | Vivek Kodesia, Eden Renewables | Wolfgang Rosenberg, TCO Solar
Supported by: EU-India Clean Energy & Climate Partnership and PwC India
Acknowledgements: SolarPower Europe would like to extend a special thanks to all the working group members that contributed their knowledge and
experience to this report, and to EU-India Clean Energy & Climate Partnership for supporting this project. This would never have been possible without their
continuous support.
Project information: The Indian edition of the EPC Best Practice Guidelines reflects the experience and views of a considerable share of the Indian and
European EPC industry today. It is based on the first edition of SolarPower Europe’s EPC Best Practice Guidelines and has been adjusted to the Indian
context in a joint effort between SolarPower Europe and NSEFI. The development of the Indian edition was supported by the EU-India Clean Energy and
Climate Partnership and their implementing partner PwC India.
Disclaimer: This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of
the authors (SolarPower Europe and NSEFI) and can in no way be taken to reflect the views of the European Union or the EU Delegation. It is provided to
recipients for general information only. Nothing in it should be interpreted as an offer or recommendation of any products, services or financial products.
This report does not constitute technical, investment, legal, tax or any other advice. Recipients should consult with their own technical, financial, legal,
tax or other advisors as needed. This report is based on sources believed to be accurate. However, SolarPower Europe does not warrant the accuracy
or completeness of any information contained in this report. SolarPower Europe assumes no obligation to update any information contained herein.
SolarPower Europe will not be held liable for any direct or indirect damage incurred by the use of the information provided and will not provide any
indemnities.
Design:
Images: Freepik.com
ISBN: 9789464518627
Published: April 2022

SolarPower Europe and the National Solar Energy Federation of India (NSEFI) would like to thank the members
of the Indian-European working group that contributed to this report, including:

Table of contents
Foreword��3 7.3. H
andover from project developer
to EPC service provider��45
List of tables and figures��8 7.3.1. S
ite description (including
site surveys and site data)��46
List of abbreviations��9 7.3.2. Permitting process��46
7.3.3. Grid connection process��46
1. Introduction��10
1.1. Rationale, aim, and scope��11 8. Engineering��47
1.2. Stakeholders and roles��11 8.1. Basic design��49
1.3. How to benefit from this document��13 8.2. Preliminary design��50
8.3. Execution design��51
2. Definitions ��15 8.4. As-built design��51
3. Lifecycle of EPC Quality Management��20 9. Procurement��52

9.1. General procurement guidelines��53
4. Risk Management during the EPC phase��25 9.1.1. Make-or-buy strategy��53
4.1. Quantification of risks��27 9.1.2. Use of third parties��54
4.2. Financial risk factors and bankability��28 9.1.3. Integration of Quality Management
4.3. Country and regulatory risk factors��28 into the procurement process��54
4.4. Contractual risk factors��29 9.1.4. C ommunication of
4.5. Technical risk factors��29 quality requirements��54
4.6. Other risk factors��30 9.2. Management of suppliers��55
4.7. Conclusions and recommendations��30 9.2.1 Selection of suppliers��55
9.2.2 Qualification of suppliers��56
5. Environment, Health & Safety��31 9.3. Supply control��56
5.1. Environment��32 9.3.1. Pre-production control��57
5.2. Occupational Health and Safety��34 9.3.2. During production inspections��57
9.4. Delivery��57
6. Personnel & training��38 9.4.1. Post-production monitoring��57
6.1. Key roles��39 9.4.2. Pre-shipment inspection��57
6.2. Training��40 9.4.3. P re-shipment testing, Factory
6.3. Leadership and Project Management��40 Acceptance Testing��58
6.4. W
orking environment and talent 9.4.4. Post-shipment inspection��58
development��41 9.5. S
pecific requirements
per key component��58
7. Transition from project 9.5.1. Modules��58
development to EPC ��42 9.5.2. Inverters��63
7.1. Selection of EPC projects��43 9.5.3. Mounting structure (fixed tilt)��65
7.1.1. Profitability��43 9.5.4. Mounting structure (trackers)��66
7.1.2. Technical quality��43 9.5.5. Cabling (including connectors)��68
7.2. Selection of an EPC service provider��44 9.5.6. Transformers��69
7.2.1. Financial stability��44
7.2.2. References and expertise��45 10. Construction��72
7.2.3. P
rice and performance 10.1. Construction preparatory phase��73
of procurement��45 10.1.1. Site survey��73

10.1.2. Stakeholder management��74 13.2.2. Deviation in Budget�� 101
10.1.3. Construction plan preparation��74 13.2.3. Deviation in Quality�� 101
10.1.4. C heck and finalisation 13.2. Ex-post KPIs�� 102
of works permits��75 13.3.1. Performance Ratio�� 102
10.1.5. A ctivation of external suppliers 13.3.2. Overall project performance�� 102
(services and materials)��76 13.3.3. Warranty KPIs�� 102
10.2. Construction implementation phase��76
10.2.1. Construction site organisation��76 14. Contractual framework��103
10.2.2. Civil works��76 14.1. Interface between the EPC
10.2.3. Electro-mechanical works��78 contract and the regulatory
10.2.4. Ancillary works��78 framework�� 105
10.2.5. Grid connection��78 14.2. Contractual risk allocation�� 106
10.2.6. Checks and functional tests��78 14.3. Price and payment�� 107
10.2.7. Mechanical completion��79 14.4. Bonds and guarantees�� 107
10.2.8. Training of Asset Owner 14.5. L imitation of liability and
and O&M service provider��79 Liquidated Damages�� 108
14.6. Termination, withdrawal,
11. System Commissioning��80 and force majeure�� 109
11.1. Pre-commissioning��81 14.7. Ownership and transfer of risk�� 110
11.2. C ommissioning, off-grid 14.8. Assignment and set-off�� 110
and on-grid tests��83
11.2.1. Commissioning activities��83 References��111
11.2.2. Off-grid testing��84
11.2.3. On-grid testing��85 Annex��112
11.3. Provisional Acceptance Certificate��86 A. Overview of applicable
11.3.1. Performance Ratio test��86 international standards�� 112
11.3.2. Other tests��88 B. Skills matrix�� 113
11.3.3. Start of plant commercial operation��88 C. E xample for Emergency
11.4. Intermediate and Response Plan�� 114
Final Acceptance Certificate��89 D. Risk Assessment Matrix and
Hierarchy of Controls (template)�� 115
12. Handover to O&M service provider��91 E. D
esign documentation�� 116
12.1. Transfer of the documentation��92 Basic Design – Development
12.2. Transfer of existing contracts��93 Documentation – Level A�� 116
12.3. A ccess to monitoring and Preliminary Design – Pre-Construction
communication systems��93 Documentation – Level B�� 117
12.4. Organisation of an inspection��94 Execution Design – Construction
12.5. P reliminary Handover Report Documentation – Level C�� 121
and Punch List��96 As-Built Design– Level D�� 128
12.6. S et up of strategic
spare parts warehouse ��97
12.7. Training of Asset Owner and
O&M service provider (after FAC)��98
12.8. C onfirmation of the Punch List
and of KPIs after 3 to 6 months
from start of O&M��98
13. Key Performance Indicators��99

13.1. Project performance KPIs�� 101
13.2.1. Deviation in Time�� 101

List of tables and figures
Table 1 Quality Management across the EPC lifecycle�� 22
Table 2 Types of quality tests for PV modules�� 60
Table 3 SECI module requirements�� 61
Table 4 SECI technical requirements for modules�� 61
Table 5 List of NABL-accredited labs�� 62
Table 6 SECI requirements for inverters�� 63
Table 7 Real operating conditions tests for inverters�� 64
Table 8 Standards used for certifying transformers�� 69
Table 9 Tests to be performed for transformers�� 70
Table 10 Tests to determine water to be used for module cleaning�� 77
Table 11 Required accuracy of energy meters in India�� 82
Table 12 Timetable for document handover between EPC and O&M service providers... �� 93
Table 13 Handover report template�� 96
Table 15 Minimum list of spare parts (non-exhaustive)�� 97
Figure 1 Risk Management strategy chart�� 26

Figure 2 Overview of engineering design stages, milestones, and deliverables�� 48
Figure 3 Make-or-buy decision matrix�� 53
Figure 4 Typical gaps between expected and real quality delivered.
Source: Bernard Meilland (1991). Key Success Factors in Services Marketing�� 54
Figure 5 System commissioning milestones. Source: World Bank Group�� 81
Figure 6 Key Performance Indicators in different project phases relevant for EPC�� 100
Figure 7 Full-wrap contract vs split EPC contract with umbrella agreement�� 104

List of abbreviations
AC................... Alternating current MPPT............. Maximum power point tracker
ALMM............ Approved List of Module Manufacturers MV.................. Medium voltage
AM.................. Asset Management MW................. Megawatt
ASCE.............. American Society of Civil Engineers NABL.............. National Accreditation Board for Testing and
BEE................. Bureau of Energy Efficiency Calibration Laboratories
BOM............... Bill of Materials NCU................ Network Control Unit
BOS................ Balance of System NLDC.............. National Load Dispatch Centre
CCTV.............. Closed Circuit Television NPM............... Net Profit Margin
CAPEX............ Capital Expenses NTP................ Notice To Proceed
CEA................ Central Electricity Authority O&M............... Operation and Maintenance
CFD................ Computational Fluid Dynamics OPEX.............. Operational Expenses
C&I.................. Commercial & Industrial PAC................ Provisional Acceptance Certificate; Pac: AC Power
CIL.................. Change in Law PBG................ Performance Bank Guarantee
CMM.............. Critical Milestones Missed PCU................ Power Conditioning Unit
CMMS............ Computerised Maintenance Management System PD................... Partial Discharge
COD................ Commercial Operation Date PGCIL............. Power Grid Corporation of India Limited
CPCB.............. Central Pollution Control Board PID.................. Potential Induced Degradation
CPWD............. Central Public Works Department PLC................. Programable Logic Controllers
CTU................ Central Transmission Utilities PM.................. Project Manager
DC................... Direct Current PMI................. Project Management Institute
D/E................. Debt-to-Equity ratio POA................ Plane of array
DMS............... Documentation Management System POI................. Point of Interconnection
DSCR.............. Debt Service Coverage Ratio POSOCO......... Power System Operation Corporation
EBIT................ Earnings Before Interest and Taxes PPA................ Power Purchase Agreement
EIA.................. Environmental Impact Assessment PR................... Performance Ratio
EH&S.............. Environment, Health and Safety PTCC.............. Power and Telecommunication Coordination
EL................... Electroluminescence Committee
EMD................ Earnest Money Deposit PV................... Photovoltaic
EoL................. End of Life QA.................. Quality Assurance
EPC................ Engineering, Procurement, Construction QC.................. Quality Control
ERP................. Emergency Response Plan QI.................... Quality Improvement
ERPS.............. Enterprise Resource Planning System QM.................. Quality Management
ERT................. Electrical Resistivity Tomography QP.................. Quality Planning
EVA................. Ethylene-Vinyl Acetate; Economic Value Added QR................... Quality Review (= Quality Monitoring); Quick Ratio
FAC................. Final Acceptance Certificate RACI............... Responsible, Accountable, Consulted, Informed
FAT................. Factory Acceptance Test RfPs............... Request for Proposals
FiT.................. Feed-in Tariff RfS.................. Requests for Selection
FTC................. First Time Charging RFSU.............. Ready for Start Up
FMEA............. Failure Modes and Effects Analysis RLDC.............. Regional Load Dispatch Centre
GST................ Goods and Services Tax ROCE.............. Return On Capital Employed
H&S................ Health and Safety ROI.................. Return on investment
HV.................. High Voltage ROS................ Return On Sales
IEC.................. International Electrotechnical Commission RoW................ Right of Way
IECRE............. IEC system for certification to standards relating RPN................ Risk Priority Number
to equipment for use in Renewable Energy SCADA........... Supervisory Control And Data Acquisition
applications SECI................ Solar Energy Corporation of India
IFC.................. Issue for Construction SLD................. Single-Line Diagram
IP.................... Inverter Protection, Internet Protocol SLDC.............. State Load Dispatch Centre
IPP.................. Independent power producer SMART........... Specific, Measurable, Achievable, Relevant, Time-
IRR.................. Internal Rate of Return bound
ISO.................. International Organisation for Standardisation SPCB.............. State Pollution Control Board
ISTS................ Interstate Power Transmission System SPV................ Special Purpose Vehicle
IVPD............... Induced Voltage test with Partial Discharge SSSP.............. Site-specific Safety Plan
measurement STC................. Standard Test Conditions (1000 W/m2, 25°C)
KPI.................. Key Performance Indicator STEM.............. Science, Technology, Engineering, and
kW.................. Kilowatt Mathematics
kWh................ kilowatt-hour STU................. State Transmission Utility
kWp................ kilowatt-peak TAM................ Technical Asset Management
LCOE.............. Levelised cost of electricity TA/SWMS...... Task Analysis/Safe Work Method Statement
LD................... Liquidated Damages TCU................ Tracker Control Unit
LeTID.............. Light and elevated Temperature Induced TRANSCO...... Transmission Company
Degradation TSO................ Transmission System Operator
LID.................. Light Induced Degradation UPS................ Uninterruptible Power Supply
LV................... Low Voltage UV................... Ultraviolet
MCC............... Mechanical Completion Certificate VPN................ Virtual Private Network
MNRE............. Ministry of New and Renewable Energy WBS................ Work Breakdown Structure

1
Introduction

1.1. Rationale, aim, and scope The Guidelines systematically go through the E,
P, and C phases of a solar power plant. (For more
According to SolarPower Europe’s market data, India details and an overview of the EPC stages, see also
has over 45 GW of installed solar capacity on its Chapter 2. Definitions, and Chapter 3. Lifecycle of EPC
territory, making it the fifth largest solar Photovoltaic Quality Management.) It is assumed that quality
(PV) nation in the world. This is supported by a underpins the entire process, and the earlier it is
project development pipeline of 53.6 GW and a introduced, the lower the overall system build costs
further 24.1 GW of projects tendered or pending and Operation and Maintenance (O&M) costs will
auction (International Centre for Sustainable be. The links between the E, P and “C” stages, as
Carbon, 2021). By 2025, solar installations are set well as the links between Development and EPC, and
to nearly treble in size, reaching 133 GW, according the EPC and O&M phases are described in detail to
to Solar Power Europe’s business-as-usual scenario. minimise handover problems.
These rapid growth projections highlight the extent
of India’s renewable energy ambitions, and the Quality is often assured by the application of
government has set a target of installing 500 GW standards. There is a comprehensive list of these
non-fossil energy capacity by 2030, meeting 50% in Annex A. The Guidelines do not aim to substitute
of energy requirements from renewable energy by any of these, they aim to support the application of
2030, and achieving Net Zero by 2070. Key to the them and point out relevant uses.
growth of the Indian solar market over this period
will be showing that solar PV is a reliable and
flexible technology that can answer India’s energy 1.2. Stakeholders and roles
demands. This means ensuring that PV projects are
meticulously planned, and power plants are built There are multiple stakeholders that interact during
to the highest possible standards, using the best the EPC phase of a solar PV power plant’s lifecycle,
available equipment. Engineering, procurement, each with different responsibilities and multiple
and construction (EPC) service providers will play areas of possible overlap. Some of the key roles can
a hugely important role in achieving this. The cost be summarised as follows:
of PV energy is a function of CAPEX, OPEX, finance,
and the amount of energy generated by a PV system. • Asset Manager: The service provider responsible
There is relentless competition in the marketplace, for the overall management of a Special Purpose
which is mostly played out in terms of cost. The Vehicle (SPV), from a technical, financial, and
four elements above are often seen as independent administrative point of view. The Asset Manager
of one another and are optimised separately. This ensures that an SPV and service providers fulfil
may not be ideal as quality assurance is the link their contractual obligations. Asset Managers
between these elements; CAPEX savings may lead also manage the site to ensure optimal profitability
to higher OPEX, or reduced energy generation. of the PV power plant (or portfolio of plants) by
These Guidelines can help minimise risks resulting supervising energy sales, energy production, and
from this siloed approach to optimisation. O&M activities. Asset Managers furthermore
ensure the fulfilment of all administrative, fiscal,
PV assets need to be cost effective to ensure broad insurance and financial obligations of the SPVs.
acceptance of the technology. Simultaneously, they Asset Managers review the performance of the
must deliver against performance expectations to sites regularly and report to Asset Owners and
prove their attractiveness to investors. To connect seek to balance cost, risk, and performance to
these two, there are different quality assurance maximise value for stakeholders. In India, asset
strategies that are employed throughout the management of projects is done by Independent
industry. These Guidelines allow for these different Power Producers (IPPs) or developers using in-
approaches, by detailing what is considered house teams. However, a recent trend has seen
essential to ensuring a worthwhile asset and services being increasingly outsourced to reduce
indicating optional or recommended things. costs, and ensure that assets operate more
efficiently

• Asset Owner (or Investor): Asset Owners are the all the above-mentioned systems and platforms
stakeholders that finance the EPC phase, and into one software. There are several advantages
the overall operation of a PV power plant. They to this approach, and it can be considered a
can be a single investor or part of a group and recommendation
can be classified as either private individuals,
investment funds, IPPs, or utilities. The preferred • EPC service provider: The entity in charge of the
model for asset ownership is an SPV, i.e., limited engineering, procurement, and construction of
liability companies, specifically incorporated for a solar power plant. An EPC service provider is
building, owning, and operating one or more PV responsible for delivering a complete PV power
plants. In some cases, when the SPV belongs plant to the Asset Owner, handling all aspects
to large Asset Owners, such as utilities or IPPs, from seeking authorisation for the construction to
some, or all, of the roles of Asset Owners, Asset commissioning and securing a grid connection.
Managers, project developers, O&M and EPC Their role is very important in procuring quality
service providers may be done in-house components and ensuring quality installation,
which have a large impact on the long-term
• Authorities: Local (e.g., the municipality), performance of solar power plants. Many EPC
regional/state (e.g., the state nodal agencies service providers also offer O&M services to
for renewable energy, provincial or regional the solar power plants they develop. They often
authorities supervising environmental provide a 2-year performance warranty period
constraints, state load dispatch centres), or lasting from the Commercial Operation Date
national (e.g., the national grid operator) bodies (COD) until the delivery of an Final Acceptance
with competence in areas that relate to stages of Certificate (FAC). In certain mature markets the
a project’s lifecycle role of the EPC service provider is increasingly
split between different entities
• Component Manufacturer or Supplier: A
component manufacturer builds and supplies • Insurance and re-insurance providers: The
any of the components required to build a PV underwriters and administrators of any
power plant (module or inverter manufacturers, insurance policy taken out for a solar PV power
cable, or hardware suppliers, etc.) plant. They have a long-term interest in ensuring
quality throughout the lifecycle of a power plant
• Data-related service providers: Companies that as it reduces the risk to which they are exposed
provide hardware and software solutions such and, consequently, the rates they charge for their
as monitoring systems, asset management policies
platforms, Computerised Maintenance
Management Systems (CMMS), or Enterprise • Lender: The lender or debt provider (financing
Resource Planning systems (ERPS). Other players bank) is not considered as an Asset Owner
in this segment provide advanced data analysis even if the loans are backed up by securities
by using site data to calculate Key Performance (collateral). The lender normally measures the
Indicators (KPIs) with analytical tools or provide risk of providing debt service based on the debt
a repository for key site information whilst service coverage ratio (DSCR) of an Asset Owner.
facilitating some administrative workflows. The role of the lender is evolving, with enhanced
Data is crucial to ensuring that Owners, Asset considerations and involvement regarding the
Managers and O&M service providers are aware requirements for the debt provision. Some
of on-site conditions, including equipment projects also have a mezzanine lender providing
behaviour. It is vital for ensuring that prompt junior debt services, where another layer of debt
action is taken once a fault has been identified is provided at a higher risk than in the original
and providing important information on potential lender’s case
areas of underperformance. There is a tendency
in the industry to opt for solutions that integrate

• Off-taker: The entity that pays for the electricity • Specialised suppliers: Providers of specialised
produced. This role is still evolving and is often services (e.g., technical or operational systems
subdivided according to national renewable consulting) or hardware (e.g., electricity
power support schemes: generating components or security system).
•C
entral agencies like NTPC Limited, Solar •
Technical Advisors and Engineers: Individuals
Energy Corporation of India Limited (SECI) or teams of experts that provide specialised
services (e.g., detailed information, advice,
• The state Distribution utility, or specific technical consulting). Their role is important as
authorities for renewable energy in a Feed-in they ensure that procedures and practices are
Tariff (FiT) scheme robust enough – according to standards and
best practices – to maintain high performance
•E
xchange, energy traders, or direct sellers in a levels from a PV plant. Technical advisors can
direct marketing scheme represent different stakeholders (e.g., investors
and lenders) but often an independent engineer
•E
nd customers in schemes that support is employed in an attempt to minimise the risk of
autonomy in energy supply bias towards any party
• O&M service provider: The entity responsible for The boundaries between these stakeholders might
the O&M activities as defined in the O&M contract. be blurred depending on the specific risk attitude
In some cases, this role can be subdivided into: and business model of each player. For instance,
certain Owners and investors have reached scale,
• Technical Asset Manager, serving as an allowing them to develop their own in-house Asset
interface between some of the technical O&M Management practice; certain O&M service providers
activities and the Asset Owner. This person is have strengthened their monitoring/performance/
responsible for providing high-level services engineering teams to provide Technical Asset
such as performance reporting to the Asset Management (TAM) services; certain utilities have
Owner, managing contracts, and managing integrated vertically and become EPC service
invoicing and the warranty agreement providers as well as developers, Owners and
operators of their own assets; corporate off-takers
•O
perations service provider is responsible have shown increasing interest in owning and
for the monitoring, supervision, and control managing the operational data of the sites they
of a PV power plant alongside maintenance purchase electricity from.
coordination
•M
aintenance service provider carries out
1.3. How to benefit from this
maintenance
document
• Project Developer: The Project Developer is
These Guidelines include the main considerations for
the entity responsible for project initiation, site
successful and professional EPC service provision.
selection, customer identification, preliminary
Although they have not been tailored to individual
studies, applications for permits, securing
stakeholders, the purpose of the Guidelines is similar
financing and selecting an EPC service provider.
for all: understanding the mandatory requirements
Project developers may own the project in
and the necessity of professional EPC services, as
the early development stages or even longer.
well as incorporating recommendations into service
Their role can sometimes include elements of
packages for more effective EPC services. Any of the
Engineering and Procurement. However, this
directly relevant stakeholders (as described above)
is not the case in SolarPower Europe’s suite of
can benefit from this work, tailor it to their needs
guidelines
without lowering the bar and know what to ask for,

offer or expect. The Guidelines are particularly useful The content covers technical and non-technical
for anybody in the industry involved in assessing or requirements, classifying them, when possible, into
minimising risks inherent in assets and solar PV the following:
projects.
1. Minimum requirements, below which the EPC
The value proposition of this report is its industry- service is considered as poor or insufficient, and
led nature, gathering the knowledge and experience which form a minimum quality threshold for a
of well-established and leading companies in professional and bankable service provider
the field of EPC, Asset Management (AM), O&M,
utilities, manufacturers, digital solution providers 2. Best practices are methods considered to be
and insurance providers. The scope of the Indian state of-the-art, producing optimal results by
edition includes the utility scale segment and more balancing technical and financial considerations
specifically, systems above 1MW. The Guidelines are
based on the experience of companies operating in 3. Recommendations, which can add to the quality
India and identify high-level requirements that can be of the service, but whose implementation
applied worldwide. These guidelines include specific depends on the considerations of the Asset
national considerations, such as legal requirements, Owner, such as the available budget
that apply to the Indian solar market, and are
designed to assist stakeholders ensure quality in the To differentiate between these three categories, verbs
development and EPC stages of a solar project. such as “should” indicate minimum requirements,
unless specified otherwise, as in, “should, as a best
practice” or “as a recommendation”.

2
Definitions

The commercial and financial management of a solar investment and the supervision
and control of technical activities. This involves management of a company or a portfolio
Asset Management
operating across several sites, dealing with a variety of regulatory frameworks and business
(AM)
models. AM is also defined as the coordinated activities of an organisation to generate
value from its assets (ISO 55000).
System commissioning closes the construction phase of the solar power plant and begins
the commercial operation period. Commissioning includes performance and reliability
Commissioning
tests to make sure that the solar power plant is built according to international standards,
best industry practice, and complies with the Owner’s requirements and grid specifications.
In the Construction phase, the solar power plant is installed based on installation manuals
provided by suppliers. Construction works involve civil works (mounting structures) and
Construction electro-mechanical works (modules, inverters, etc.) and supervisory and monitoring
equipment. Some parts of the construction may be subcontracted by the EPC service
provider.
An agreement with specific terms between an Asset Owner and a service provider. This
Contractual agreement defines the scope of the services to be provided, the management and interfaces
Framework of those services, and the responsibilities of each party. Liquidated damages and bonus
schemes are also part of the contractual commitments.
Technical and functional specifications for both software and hardware systems used to
Data and monitoring
collect, transmit and store production, performance, and environmental data for power
requirements
plant management.
A DC box (or Generator Connection Box) is used in PV power plants to connect the individual
Direct Current (DC)
solar module strands of a photovoltaic array in parallel, and to connect larger wire cross
box
sections to the inverter.
Decrease in the efficiency of a solar plant with the passage of time. Usually, at least 80%
Degradation of the original output is expected within a 20-year period. Most financial assessments
assume a 0.3-0.5% yearly ageing factor.
Phase in the lifecycle of a project that includes its initiation, site selection, customer
identification, preliminary studies, applications for permits, securing financing and
Development (Project selecting the Engineering, Procurement, and Construction (EPC) service provider. Project
development) developers may own the project in the early development stages or even longer. The term
“Project development” sometimes includes elements of Engineering and Procurement.
However, this is not the case in these guidelines.
A Distribution Station is the final stage in the delivery of electric power. Distribution
Distribution station substations connect to the transmission system and lower the transmission voltage to
medium voltage ranging between 2 kV and 35 kV with the use of transformers.
A management system that records, manages, and stores documents required for O&M
and AM. These include previous and current versions of technical plant and equipment
Documentation documentation and drawings, maintenance manuals, photos, reports, reviews, and
Management System approvals. DMS also define proper document formats and the processes for information
(DMS) exchange. Due to the increasing complexity of documents and to enable advanced
analytics, electronic DMS with the ability to handle meta-tags and searchable, editable
documentation are becoming best practice.

The Engineering phase starts off as a basic technical concept, the engineering design is
itself a process that evolves and is constantly refined as the project development advances
Engineering into a detailed execution design blueprint, issued for construction. Once construction and
commissioning are completed, a detailed set of “as built” documents is handed over to the
O&M service provider.
EPC refers to companies that deal with the Engineering, Procurement,

Engineering, Construction and Commissioning of solar systems. The EPC service provider is responsible
Procurement, and for delivering a complete Photovoltaic (PV) power plant to the Asset Owner, handling all
Construction (EPC) aspects from seeking authorisation for the construction to commissioning and securing a
grid connection.
Environment, Health EH&S indicates the policies and guidelines formulated to ensure environmental protection,
& Safety (EH&S) and occupational health and safety at work and on site. It applies to staff and visitors and
is covered in national laws and regulations.
An official acknowledgement that the minimum Performance Ratio (PR), guaranteed by

the EPC service provider, has been met over a two-year period since the issuance of a
Final Acceptance
Provisional Acceptance Certificate (PAC). The acknowledgement also confirms that the
Certificate (FAC)
power plant has no defects. Once delivered, the Owner takes over full responsibility for the
plant.
A policy mechanism, designed to accelerate investment in renewable energy technologies,

Feed-in tariff (FiT) through which power producers enter into a long-term contract where they receive a fixed
rate payment for each unit of energy they produce and inject into the electricity grid.
A legal term, often used in contracts, good industry practice is synonymous with best
practice throughout these guidelines. The term refers to practices, methods, techniques,
standards, codes, specifications, acts, skills, and equipment that go beyond the established
minimum acceptable baseline in the international solar power industry (including in the
Good industry
construction and installation of solar power facilities). They are adhered to by high-quality
practice
service providers and are designed to help accomplish the desired result of a decision or
action (or lack thereof), in line with applicable laws and permits. Good industry practices
are reliable and safe, economically efficient, protect the environment and are done with the
degree of skill, diligence and prudence that would ordinarily be expected.
Grid code compliance Equipment, procedures, and actions required by a grid operator to comply with grid safety,
requirements power quality and operating specifications.
An application to an insurer, from a customer, for reimbursement based on their insurance

Insurance claim
policy terms.
An Inverter is a type of electrical converter which converts the variable direct current
(DC) output of a photovoltaic power plant into a utility frequency alternating current (AC).
Inverter
Afterwards it feeds into a commercial electrical grid or is used by a local, off-grid electrical
network.
The solar radiation incident on a solar panel over time, relative to its area. It is usually
Irradiation expressed in watt-hours per m². It plays an important role in the determination of the
optimal inclination angle of PV modules and the profitability of a PV system.

SMART (specific, measurable, achievable, relevant, time-bound) parameters used to
evaluate relative performance against a set of fixed objectives. In the context of EPC, KPIs
Key Performance
are used to decide whether to invest in a project, trust a particular EPC service provider or
Indicators (KPIs )
not, track project progress, optimise EPC service providers’ processes, and deliver a final
assessment of a built project.
The smallest environmentally protected, essentially planar assembly of solar cells and
Module ancillary parts, such as interconnections, terminals (and protective devices such as diodes)
intended to generate direct current power under unconcentrated sunlight.
The digital platform used for the overall management of PV plants or a PV plant portfolio. It
allows for centralised monitoring of the functioning, energy generation and reference data
of a PV plant and its components. Ideally, this would be performed through a real-time
Monitoring System
monitoring module that retrieved data from local Supervisory Control & Data Acquisition
(SCADA) systems. It also includes operational modules such as ticket dispatching,
analytics, and reporting. The centralised monitoring module receives data for 24 hours a
day, all year from in-plant SCADA systems, purpose-built sensors for measuring irradiation
and temperature and other sources such as meteorological information.
Structures used to fix solar panels to surfaces like rooves, building facades, or the ground.
In the case of utility-scale solar PV plants, there are three main ways of securing mounting
structures:
• Pole mounts driven directly into the ground of embedded in concrete

Mounting structure
• Foundation mounts such as concrete slabs or poured footings
• Ballasted footing mounts such as concrete or steel bases that use weight to secure the
solar module system in position and do not require ground penetration. This type of
mounting system is well suited for sites where excavation is not possible, such as capped
landfills, and simplifies decommissioning or relocation of solar module systems
O&M includes all the services that ensure maximum efficiency and the smooth running
Operation and
of a PV plant. The services include monitoring and supervision, predictive, preventive,
Maintenance (O&M)
and corrective maintenance, performance analysis and improvement, power generation
forecasting, and site security management.
Operators, technicians, engineers, and managers employed for the execution of the O&M
Personnel & training activities and training plans/programmes to train them on relevant PV plant related aspects
and to keep them continuously updated on their respective roles.
The Procurement phase covers the selection and purchase of components such as PV
modules and inverters, and the identification and mitigation of risks through suitable
Procurement
inspection, testing and qualification mechanisms. It also involves supplier onboarding, and
inspections and tests until the end of the procurement process.
A preliminary acknowledgement that the minimum Performance Ratio (PR), guaranteed by

Provisional the EPC service provider, has been met after an initial testing period, following completion
Acceptance of the power plant’s construction. The issuance of the PAC launches the two-year warranty
Certificate (PAC) period, after which, provided the PR guaranteed by the EPC service provider has been met,
a FAC is issued.

An independent electricity generating entity (PV panels and Balance of System), with its
PV Power Plant
own set of operational and financial contracts.
Quality is a perceptual, conditional, and somewhat subjective attribute and may be

understood differently by different people. It is a commitment to customers in the market.
Quality
It can also be defined as fitness for intended use. Quality also takes into account the
reduction of harm that a product may cause to the environment or human society.
Quality Management is the process through which an organisation ensures Quality. Its four
Quality Management
pillars are Quality Control & Assurance, Quality Review, Quality Improvement and Quality
(QM)
Planning.
The effect of uncertainty on objectives. The major categories of PV risk include, but are not
Risk limited to, financial risks, country and regulatory risks, contractual risks, commercial risks,
technical risks, and reputational risk.
The practice of identifying and analysing the risks to which solar power systems and
Risk management operations are vulnerable and taking steps to mitigate them. The different risk management
methods are risk avoidance, risk reduction, risk control, risk transfer. A risk that cannot be
mitigated is called residual risk.
A company with its own rights, assets, and liabilities, created for building, owning, and
Special Purpose
operating one or more solar power plants. An SPV can also be referred to as an SPE (special
Vehicle (SPV)
purpose entity) or as a project company.
Substations transform voltage from high to low or the reverse. A substation is a part of
an electrical generation, transmission, and distribution system. A substation may include
Substation
transformers to change voltage levels between high transmission voltages and lower
distribution voltages or at the interconnection of two different transmission voltages.
A data acquisition system that connects various hardware and software

Supervisory Control
components in a given site and is used to monitor and control the solar power plant
and Data Acquisition
remotely. SCADA systems are typically employed to send data to a centralised monitoring
(SCADA)
system for monitoring and analytical purposes (see definition for “Monitoring System”).
A turnkey EPC contract is a contract in which the EPC service provider delivers the entire
solar power plant to the investor so that construction and commissioning are completed,
Turnkey EPC contract
and the solar power plant is ready, available to operate and feed generated electricity into
a grid distribution system.

3
Lifecycle
of EPC Quality
Management
A solar plant is a structure with many components. and investments. Taking a strong approach to
It is comprised of rows of solar PV panels mounted QM will enable the industry to move on from past
on structures, connected in series and supported mistakes and confidently deliver solar plants as part
on foundations usually composed of partially of India’s critical energy infrastructure.
embedded steel pipes. Rows of solar panels are
mounted on the racking and are connected through It is vital for solar PV power plants to consider what
electric wires which take DC power generated by are defined in these Guidelines as the four different
the panels through combiner boxes to inverter pillars of QM (see table):
houses where inverters convert it to AC power. This
AC power is passed through step up transformers • Quality Control & Assurance (QC): The EPC
that raise the voltage to a suitable level for the main service provider must build high quality solar
utility lines into which it is fed via a switching control power plants to satisfy investors and other
and metering system. stakeholders like employees and banks. The EPC
service provider is responsible for building the
The quality of the components described above, power plant, controlling the quality and making
their installation, and their maintenance are all vital sure that all required standards, as prescribed
to ensuring the system operates efficiently. This by the Central Electricity Authority (CEA), the
chapter covers the key aspects of quality assurance Ministry of New and Renewable Energy (MNRE),
in the EPC phase of an asset’s lifecycle. and other state agencies, are met. With prices
reducing regularly, and EPC service providers
Quality – if not set by clear criteria and measurements needing to provide value for money, a project’s
– is a perceptual, conditional, and somewhat quality is crucial
subjective attribute and may be understood
differently by different people. In general, it • Quality Monitoring or Quality Review (QR):
can be defined as a commitment to customers in the An EPC service provider is not in control of
market or as fitness for intended use, in other words, the quality and production processes of the
how well the product performs its intended function. suppliers but can monitor/review them and the
Quality also takes into account the reduction of finished products, which then might be accepted
harm that a product may cause to the environment or rejected
or human society. By applying Quality Management
(QM) an organisation seeks to ensure that this goal • Quality Improvement (QI): Quality must not only
is achieved. be improved if results fail to meet requirements.
QI starts much earlier. Before the production of
Utility-scale solar is still a maturing industry. In the components by the suppliers, the EPC service
the past it has been punctuated by fixed-period provider should ask experts to audit the factory
subsidy windows that have often adversely and the production processes to understand
impacted the quality of assets and their operational the weak points, demand better processes and
life expectancies. Financial pressure through maybe improved (narrower, clearer, more detailed)
looming deadlines for subsidy windows, or specifications. The same applies for design and
other “hard” (sometimes contractually imposed) construction
deadlines has led to rushed decision making,
inappropriate procurement, insufficient project • Quality Planning (QP): It is not sufficient to simply
oversight, and ultimately poor construction. These manage the quality of the power plant and its
counterproductive dynamics increase risk in finance components. The power plant must be designed
and health and safety (H&S). It is important to in the right way, with optimised components in
address this issue to ensure sustained solar growth line with local requirements
and continue attracting the required commitments

Table 1 - Quality Management across the EPC lifecycle
Engineering Operational
Procurement phase Construction phase Commissioning
phase phase
Supplier Preparatory
Contracting Supply Implementation
Selection phase
• Basic Shortlisting of • Agreeing on • During • Site survey • E H&S Pre- Power Plant
design suppliers fixing the production • Stakeholder coordination commissioning Operation
• Preliminary • Selection of finding from inspections management •S ite and mechanical
design suppliers the Factory • Post- • Construction organisation completion Power Plant
• Execution • Qualification Audit production Plan •C ivil works Maintenance
design of suppliers • Agreeing on control Preparation • E lectro- Commissioning
• As-built specs • Pre- • Work permits mechanical •O ff-grid (See also the
drawings Factor Audit • Agreeing shipment works testing O&M Best
• Pre-production on special inspection •A ncillary •O n-grid Practice
control quality • Pre- works testing Guidelines –
requirements shipment •G rid India edition .)
• Defining testing connection PAC tests
criteria for • Post- •C hecks and •P R test Technical Asset
Quality shipment functional •O ther tests Management
Monitoring inspection tests •S tart of plant
•M echanical operation Commercial and
completion Financial Asset
•D elivery of Intermediate Management
“As-built” and FAC
docs •P R test
•S et up of •O ther tests Lifecycle
strategic •H andover to lessons learnt
spare parts O&M service and feedback
warehouse provider loop opportunity
•T raining of to previous
Owner and lifecycle phases
O&M service
provider Maintenance
of spares
equivalent to
15% of O&M
expenses.
Documentation
Product lifetime
Quality Quality Review: Quality Quality Quality Control Quality Control Quality Control Quality Control
Planning Audit Improvement Review:
Monitoring
From Site Selection, Engineering, Procurement, ensure the availability of local technical support,
Delivery, Construction, Operation and even the the interoperability of different parts, and should
End-of-Life Phase, QM must pervade the project optimise the power plant’s design within the legal
management approach. Moreover, QM actions framework and local technical requirements.
should always be flanked by good documentation.
In the Engineering Phase a PV project is planned
Quality Planning is particularly important during the and designed. The focus here should be on selecting
Engineering Phase. The planning process should the proper components in the design based on

product quality and functionality/compatibility. The their quality and grants replacement of deficient
designing process, however, is a steady process components in the case of a failure. As lifespans
that continues beyond the planning phase. It runs of solar PV systems can reach more than 20 years,
parallel to other phases as the project advances. this time frame must also apply to the lifespan of a
To underline this there are several design levels at component, and it is incumbent on manufacturers
which engineering expertise is inputted (see also to ensure this insofar as possible.
Chapter 8. Engineering):
Further, geotechnical analysis of the ground should
1. Basic design be carried out to check the soil’s properties at the
•N
ecessary approach, often required by relevant installation site. Corrosive soil conditions can
authorities, to move forward in process influence the severity and rate of corrosion of racking
2. Preliminary design materials. Therefore, considering soil properties in
•D
etailed definition of materials, their quantities, the design phase (Level B or C) is essential. This
and the works that will take place is especially important for mounting systems, as
•S
erves as basis for tendering costs for materials they should be designed to be resilient against soil
& works environments to keep potential corrosion risks to a
3. Execution design minimum.
•C
reation of documents serving as Issue For
Construction (IFC) Quality Monitoring is prevalent in the Supply section
4. As-built design (after construction) of the Procurement Phase. In this phase it must be
ensured that all documents are secured, that agreed
A well thought out design that is planned carefully standards and criteria have been met, and that
is the basis for any high-quality PV project. Proper packaging and transportation is safe. In this phase
engineering know-how is therefore key in planning EPC service providers have the chance to detect
quality solar power plants. In addition, the availability defects early enough to avoid problems during the
of technical support for components, such as Construction Phase.
central inverters, in the country of the project should
also be considered as this is essential in the case From the Construction Phase onwards, QM is under
of emergency. A supplier should be able to respond full control of the EPC service provider, so Quality
quickly and provide service to its customers. This Control is most important. The EPC service provider
should be considered when planning a solar project needs experienced sub-contractors, who adhere to
and is part of QM. the installation manuals provided by suppliers, to
ensure proper storage and installation of mounting
Quality Improvement is particularly important in the systems and other components. This ensures the
Contracting part of the Procurement Phase. It sets quality of the installation, the long-term stability of
out the various inspection requirements, defining the PV system, and avoids claims being made on
when they will be carried out, which standards and warranties.
criteria shall be applied, how they will be measured,
and who is responsible for acting upon the results. After commissioning, the EPC service provider must
International standards and conformity assessment review the whole process to learn important lessons
standards frequently referred to in the context of PV for Quality Improvement for future projects.
systems are issued by IEC, ISO (standards).
Quality Control continues through the Operation
When signing a contract for a solar component Phase. A power plant should produce electricity
there should always be a manufacturer’s warranty. as planned, so defects have to be avoided. The
Procurement managers should read the warranty whole PV system must, for decades, withstand
terms carefully. Ideally, the manufacturer’s warranty several natural external impacts. These include
covers material and performance for sufficient wind speeds of up to 250km/h, snow loads of up to
years, depending on the component. This assures 5400 Pa and seismic as well as vibration loads. This

once again highlights the importance of quality in As we saw, the quality of a solar system must be
every aspect of system design. To ensure electrical planned, monitored, controlled, and improved. While
safety, entire PV systems must be grounded. To certain tasks are more important in some phases,
do so, the material used for mounting systems there are always overlaps. A comprehensive approach
must enable grounding and this should be checked to quality strengthens a complete lifecycle of QM.
before installation. It should be noted that, as
with any operational infrastructure asset, ongoing To avoid conflicts of interest within an operational
performance and reliability is dependent on there organisation, ideally, a quality organisation regularly
being a robust and regular maintenance programme reports to the highest management position within
throughout its operational life, which is part of QC. the company. It is important that suitable measures
For more information on the Operation Phase see are in place for the quality management staff.
SolarPower Europe’s O&M Best Practice Guidelines – International standards might be a possible measure
India edition. to monitor the effectiveness of quality management
practices exercised.

4
Risk
Management
during the
EPC phase
The term “risk” is often characterised by reference accommodates multiple ‘silo-centric’ management
to potential events and consequences or a systems. The scope of this approach will enable
combination of these. It is often expressed in terms all strategic, management and operational tasks
of a combination of the consequences of an event of an organisation throughout projects, functions,
(including changes in circumstances) and the and processes to be aligned to a common set of
associated likelihood of occurrence. ISO guide 73 risk management objectives. The following Figure
Risk Management defines risk more simply as “effect illustrates an effective risk management strategy
of uncertainty on objectives”. It is to be noted that process loop.
the word “effect” can refer to positive and negative
deviations from previous expectations. The term To effectively manage risks, one must analyse
“objectives” can have different aspects (financial, risk exposure. This involves the identification of
health and safety, environmental, etc.) and can potential risks, measuring them, assessing possible
apply at different levels (strategic, organisational, impacts and the likelihood of them happening, and
project, product, and process). “Uncertainty” is the evaluating them as a result.
state, even partial, of a lack of information related
to understanding or knowledge of an event, its Managing risk involves a closed loop process.
consequence or likelihood. As a first consideration, risks should be avoided
systematically and responsibility for doing so
ISO 31000:2018 Risk Management provides lies with the responsible stakeholder. Once risks
generic guidelines for the design, implementation, have been identified they must be mitigated and
and maintenance of risk management processes controlled. A failure mode and effect analysis can be
throughout an organisation. This formalised used to assess their severity and, where necessary,
approach to risk management practices facilitates lead to changes in processes. Risks can be
broader adoption by companies who require transferred by various measures. The most common
an enterprise risk management standard that of these include shifting the responsibility of certain
Figure 1. Risk Management strategy chart
Risk management implementation, business integration and communication strategies
Risk analysis
Risk taking
& cover
Measurement
Risk identification & reporting
Strategic • Operational • Project
Risk
Risk transfer avoidance Risk reporting
Insurance, SPV,
Contract
Risk measurement
Impact • Likelihood Risk
mitigation
Control
and process
Risk evaluation improvement
Controls: Quality, Financial, System
Risk management
Early warning system

processes to another party via a contract, buying an using FMEA, please refer to the Solar Bankability
insurance plan that provides cover or setting up a project at www.solarbankability.org.
purpose specific limited liability company (otherwise
known as an SPV). There may be some residual risks The cost of mitigation measures needs to be included
that cannot be fully mitigated against or transferred. in a cost benefit analysis, which must consider the
These must be controlled by proper measurement expectations of the stakeholders that are involved in
and by effective reporting structures to ensure that a PV project. Mitigation measures must be identified
exposure to them remains within manageable limits. along PV the value chain and assigned to various
technical risks. Typical mitigation measures during
The following subchapters outline several broad the design phase are linked to the component
categories of risk. Risk-mitigation and transfer selection (e.g., standardised products, products
methods are not discussed in great detail as this with known track record), O&M friendly design (e.g.,
would go beyond the scope of this document. accessibility of the site, state of the art design of
Whilst the risks identified in this chapter are present the monitoring system), Levelised Cost of Electricity
throughout a project’s lifecycle, they are helpfully (LCOE) optimised design (e.g., tracker vs. fixed tilt,
contextualised within the EPC phase. This helps central vs. string inverter, quality check of solar
give both EPC service providers and Asset Owners resource data). Mitigation during transportation and
alike an insight into each other’s concerns. installation is linked to the supply chain management
(e.g., well organised logistics, quality assurance
during transportation), quality assurance (e.g.,
4.1. Quantification of risks predefined acceptance procedures), grid connection
(e.g., knowledge of grid code). These mitigation
The typical approach in risk analysis in technical measures positively affect the uncertainty of the
projects is to apply a classic Failure Modes and overall energy yield, increase the initial energy yield,
Effects Analysis (FMEA) where the various risks, and reduce the cost of O&M during the operational
belonging to a certain phase and component, can phase.
be prioritised through their Risk Priority Number
(RPN). In the FMEA, each identified risk is typically It is important that risk ownership is also
evaluated for its severity (S), occurrence (O) and considered to better understand which stakeholder
detectability (D); numbers are used to score each is responsible for mitigation of a risk. Suitable
of these evaluation parameters. Typically, the RPN planning, supervision, and quality assurance actions
is then obtained by multiplying these three factors are critical at all stages of a PV project to minimise
with the following formula: the risk of damages and outages, optimise the use
of warranties, and the overall performance of the
PV plant. In practice, it is important to understand
RPN = SRPN x ORPN x DRPN the combined effect of mitigation measures to
be able to calculate their impact and assess their
effectiveness. The cost-benefit analysis can include
Technical risks are those that arise from the the combination of various mitigation measures
PV module, inverters, and other mechanical and derive the best strategy depending on market
and electrical components, as well as system segment and plant typology.
engineering, energy prediction, and installation.
Some risks are confined to specific phases of Particular attention needs to be paid to technical
development, such as construction risk, while others risks which are related to Environment, Health &
persist throughout the entire cycle from planning Safety (EH&S) issues. Some EH&S risks are not
through operation, such as default risk. For more linked to any performance loss, they must however
information on the quantification of technical risks, be dealt with to reduce possible harm (risks leading
to electrical fault, fire, etc.).

4.2. Financial risk factors and 4.3. Country and regulatory
bankability risk factors
A project’s equity can be significantly compromised Country risk refers to the risk of investing or lending
if a PV power plant does not perform. This is because, in a country. For example, financial factors such as
across a project’s lifetime, the development and currency controls, devaluation or regulatory changes,
the EPC phases carry the highest risk. Financial or stability factors such as mass riots, civil war and
risk involves market modelling, credit, liquidity, other potential events contribute to companies’
operational and other risks (e.g., reputational, operational risks. This term is also sometimes
legal, IT, to name a few). In many projects, the referred to as political risk. A differentiated country
financial modelling already poses an inherent risk, risk classification is offered by various institutions
particularly when optimistic assumptions are taken, e. g. OECD, S&P, Moody’s, Fitch, World Bank, and
and insufficient sensitivity scenarios, without other institutions.
critical influencing factors, are used. For the EPC
part of a financial risk assessment, it is important to In India, SECI is a major off taker for power from solar
have an understanding of (however, not limited to) PV projects (occasionally other state intermediaries
the following risks: market risks (particularly price with higher credit ratings will be involved). SECI and
and currency fluctuations from time of engineering/ these intermediary agencies provide much-needed
design through Commercial Operation Date (COD) support in reducing the financial risks, especially
and cash related transaction risks, for example, how if projects are developed under the Build-Own-
a pre-payment can effectively be secured against Operate format. Similarly, as India is a politically
future deliveries. Examples of risk mitigation stable country, many of the challenges above do
measures include performance bonds backed by not occur or are often quickly resolved to safeguard
internationally accepted financial institutions and relationships with investors.
escrow accounts. Another important aspect of
financial risk analysis relates to solvency of the However, there are some regulatory risks involved,
parties involved in the project and their individual particularly around which technical standards
business habits. Especially when it comes to a projects are meant to follow. Service providers
first-time interaction with a new business partner, seeking connection to the grid, must make sure they
business habits, including their value set, can have are aware of which technical standards apply in the
a significant impact on the financial stability of a state they are operating in, particularly as these can
project. There are several background checks that vary between states. Solar PV projects are required
can help reveal the reliability of a new partner, such to meet grid standards for voltage imbalance &
as references and financial health (credit) checks. fluctuation, metering, harmonic and DC injection
and flicker, DC side overloading to receive optimal
One important point of consideration for financial output, etc.
risks is bankability. It is important to note that
different banks have different standards of Any changes to technical standards, equipment
assessing a project and its underlying risk. Two used, updates to codes of practice for safety,
factors are vital from an EPC perspective: Firstly, it is substation grounding, insulation level and insulation
essential to make sure that your own bank accepts coordination, protection relays, connection schemes,
any bonds issued by banks of your business partner. or the introduction of new technologies after the
Secondly, it is important to understand the technical EPC contract has been signed all pose significant
requirements of the lending bank (often only for the risks. This makes it imperative that EPC service
long term) of the buyer of the PV power plant and to providers and Asset Owners clarify all obligations
adhere to these. and responsibilities in the EPC contract to avoid any
uninvited risk.

Currently, Change in Law (CIL) claims tend to favour 4.5. Technical risk factors
developers, with the financial burden incurred
through any changes tending to fall on EPC service The main technical risks associated with EPC
providers. This makes it even more important to are related to using key components properly.
ensure balanced risk allocation in EPC contracts Key components are defined as the essential
before the EPC phase starts. For more details on components that are needed to operate a PV system
this, please refer to section 14.2. Contractual risk safely such that it performs to a minimum acceptable
allocation. standard. Under this definition, key components of a
PV system are
Other risks that are significant to EPC service
providers and should be discussed in detail in the • Modules
contract beforehand to minimise the risks across • Inverters
geography are as follows: • Mounting structure
• Cabling – including connectors
i. Policy Risk • Transformers
ii. Weather conditions delaying the project
timelines Generally, international, and local standards
iii. Change in trade relations and supply chain and codes (e.g., IEC standards) are supporting
disruptions causing construction delays documents to enable a minimum set of technical
iv. Mismatch in design delegation, risk risk analyses. However, there are other technical
assumptions risk aspects involved in an EPC project that are not
v. Security validity, exemption, policy/ scheme covered by such standards.
implementation
vi. Non standardisation of the Technical While testing the key components is recommended
Specifications/Technical Eligibility criteria as part of Quality Review (QR), correct installation of
vii. Regulatory Exposures (Company’s Act, those components, using state of the art techniques,
Accounting Standards) is more critical to building a high-performance
viii. Currency Fluctuation power plant. Studies have shown that low plant
ix. Environmental Risk performance is most likely due to system problems.
x. Land risk
xi. Equipment failure Understanding the true risk exposure and setting a
xii. Material and Inventory risk framework to understand and measure all technical
xiii. Infrastructure risk for connectivity risks is therefore an indispensable exercise prior to
giving a quote for a project. EPC service providers
should seek funding to carry out a thorough technical
4.4. Contractual risk factors risk analysis. This practice benefits all stakeholders
directly or indirectly involved in a project, as usually
Often contracts do not refer to the entire project or the cost of mitigation increases sharply over time.
are not well defined, and therefore bear a significant Conformity with relevant standards and best
risk of misinterpretation. To prevent unexpected practices is paramount. For more details on specific
risks and thus disputes during construction, requirements, see Chapter 8. Engineering, Chapter 9.
international contractors should pay close attention Procurement (section 9.5. Specific requirements per
to local project characteristics and contract key component), and Chapter 10. Construction.
practices. For details on this subject, refer to section
14.2. Contractual risk allocation.

4.6. Other risk factors assessment, especially during the EPC phase (or
the inception phase) of a PV project, pays off in
Other risk factors that play a role in EPC projects the long run. There are too many examples of non-
that have not yet been addressed may include: performing assets in the field, some of which even
represent safety hazards. The bill after ostensibly
• Availability of components benefitting from saving during the inception phase
• Transportation, transportation damages can result in severe, unplanned costs for taking
• Delays, e. g. delays in shipments corrective actions in the long run. While this does
• Local certifications, import rules not even represent the worst case, the 5 years of
• Import duties (Including any safeguard duty, operation until failure represent less than 20% of
anti-dumping duty, etc.) a system lifetime, and the damage resulted in an
additional, unplanned investment of approx. 38% in
the fifth and sixth years.
4.7. Conclusions and
Proper quality and risk management should have
recommendations
their place in any PV power plant project throughout
its lifetime. Getting the PV power plant inspected
In conclusion, even though it can add about 2% to
and rated in regular intervals is always confirmation
the cost of a PV system, Quality Management, if
of a healthy, well performing system – so is flagging
properly performed, including proper conformity
any corrective measures to be taken early-on.

5
Environment,
Health & Safety

Environment, Health & Safety (EH&S) are critically For this purpose, it is important that Asset Owner
important during the EPC phase of a solar projects. and the EPC service provider and other contractors
In India, the main legal requirements for ensuring meet and align on procedures to follow to avoid
occupational health & safety come from the Technical risks, especially when different contractors are
Standards for Construction of Electrical Plants and working simultaneously on the site.
Electric Lines, 2010, and the CEA-Measures Relating
to safety and Electric Supply, 2010. These can be
combined with internationally accepted standards, 5.1. Environment
such as the IFC Performance Standards and the
Equator Principles, to make sure that solar projects Without precaution, the environment hosting
do not negatively impact the environment and the PV power plant may be affected during the
ensure a healthy and safe workplace. Furthermore, project’s lifetime. Hence, an effective assessment
international financial institutions also use EH&S of the associated impact of the proposed
and social criteria when assessing projects. development project is the most crucial aspect of
This chapter proposes an overview of EH&S best any environmental and social impact assessment.
practices. Since a universal methodology might not apply to
every project’s environmental and social conditions,
Good coordination is fundamental to fulfilling all different approaches are adapted to suit the
EH&S objectives as summarised below: environmental context of each site.
• Establish, implement and maintain an effective There are several basic environmental authorisations
integrated EH&S management system including, but not limited to:
• Ensure compliance with CEA-Measures Relating • Environmental impact assessment (EIA)

to safety and Electric Supply, 2010 and any other • Endangered/protected species
applicable health, safety and environmental • Agricultural protection
legislation, codes and standards. Whenever • Historic preservation
possible, best practices should be used • Forestry
• Ensure that intrinsically safe design is achieved In India, decisions on which environmental permits,
by monitoring progress and preparation of final or authorisations/consents must be obtained are
results and systematic review of the design made by the Central Pollution Control Board (CPCB)
process, if necessary and obtained from the local State Pollution Control
Board (SPCB). The CPCB classifies industries into
• Manage risks in the design, procurement, four categories:
construction, installation, commissioning,
operation and maintenance activities i. Red
ii. Orange
• Ensure appropriate levels of skills for all staff iii. Green
engaged in carrying out critical EH&S activities iv. White
and provide training where necessary
As per the “Revised Classification of Industrial
• Check for any potential EH&S impacts in the Sectors under Red, Orange, Green and White
project area and ensure that these are minimised categories”-2017 on Water (Prevention and Control
of Pollution) Act, 1974 and Air (Prevention and
• Ensure that a complete inventory of all waste and Control of Pollution), Act, 1981. The entry at Sr. no.
discharges is maintained and that all waste is 35 under “White category” includes the below:
disposed of in an environmentally and regulatory
acceptable way

i. Solar power generation through photo-voltaic • Identify the addressable “target volume”, i.e., the
cells, plants of all capacities failed solar PV modules (or strings), the repair of
ii. Wind power generation, plants of all capacities which is technically feasible, and the occurrence
iii. Hydel power plants, up to and including capacity or distribution of such failures
of 25 MW
• Determine the post-repair efficiency and/or post-
Through their inclusion in the white category, solar revamping reliability of these modules
power plants of all sizes are exempted from the
CPCB’s clearance requirements. • Integrate optimal sorting-repair-reuse and
logistics procedures in the current solar PV
O&M value chain, embracing circular economy
Safe disposal business models
Based on the latest available (2019) figures reported On this basis, we identify certain future R&D
on the growth of solar PV installations, we can pathways and challenges to be addressed, to
estimate that about 1-1.2 million solar PV modules support the development, growth, and bankability
are installed every day around the world. With this of second life solar PV and circular solar PV O&M
in mind and with an estimated average annual business:
failure rate of 0.2% in the field, we may anticipate
today ~8 million solar PV modules to fail every year, • Industrialisation and qualification of new solar
corresponding to a weight of 144 kt of potential PV module designs-for-circularity: including
annual solar PV waste from solar PV failures only. “repair-friendly” solar PV components, modular
Adding also other solar PV waste sources and designs, and deployment of repair technology
streams, such as the decommissioning of solar PV solutions in upscaled re-manufacturing lines
modules due to end of service lifetime, repowering,
insurance claims, etc., the cumulative solar PV • Identification and tracking solutions (e.g., RFID)
waste is expected to reach up to 8 Mt by 2030. at solar PV components/modules/system level,
to facilitate reverse logistics, sorting/inventory
Reported field experiences show that, most solar of solar PV and warehouse operations
PV modules with diagnosed/classified failures
that are decommissioned, follow a linear End of • (Automated) detection, diagnostics, and
Life (EoL) management approach: they enter the classification (incl. recommendation) of repair or
waste stream and are either disposed as waste re-use operations in solar PV asset management
(the majority of the time) or recycled. Currently less tools for solar PV plants
than 10% of decommissioned modules are recycled.
However, experts from the IEA PVPS Task 13 and the • Standardisation/technical specifications for on-
CIRCUSOL project estimate that 45%-65% of them, site quality control and sorting, as well as off-site
can be diverted from the disposal/recycling path, design qualification and type approval protocols,
towards repair and second life solar PV (re-use) or, towards solar PV reuse-repurposing-recycling
as aforementioned, revamping.
• Synergies of solar PV Asset Owners and O&M
To ensure the technical-economical bankability service providers, with innovators in supply chain
of solar PV re-use and second life solar PV, within / reverse logistics technologies, also leveraging
the O&M framework and the overall solar PV value AI/machine learning aided logistics, sorting,
chain, it is important to: warehouse operations, inventory management
for circular solar PV economy

5.2. Occupational Health and Safety given to all those entering a solar farm as to how
to safely deal with the effects of electrocution.
The following dangers are likely to exist on most In addition to general electrical safety, common
solar plants and must be considered when listing issues for PV plants include arc-flash protection
hazards to identify risks. The severity of any injuries when working on energized circuits; and lock-out-
caused are commonly exacerbated by the terrain tag-out to ensure circuits are not unintendedly
and remoteness often found on solar plants. energised
1. Medical problems 6. Fire

It is critical that all personnel engaged in work on Several sources of combustion exist on a
solar farms have considered and communicated solar farm, the most common being electrical
any pre-existing medical problems and any fire others including combustible materials,
additional measures that may be required to deal flammable liquids, and grass fires. Safe exit
with them routes need to be identified and procedures fully
communicated. All personnel need to be fully
2. Slips, trips, and falls aware of what to do to both avoid the risk of fire
The terrain, obstacles and equipment installed and what to do in the event of a fire
on a solar farm provide plenty of opportunities
for slips, trips and falls both at ground level and 7. Mud and water
whilst on structures or ladders; and for roof-top Many solar farms have water travelling through
or carport systems, fall-protection and additional them such as streams and rivers, some have
equipment is required when working at heights standing water, and some are floating arrays.
Mud is a very common risk particularly in winter
3. Collisions as low-grade farmland is often used for solar
Collisions can occur between personnel, farms, becoming a very common risk, particularly
machinery/vehicles, and structures. The large in the monsoon season in India. Mud and water
areas covered by solar farms often necessitate present problems for access as well as electrical
the use of vehicles and machinery which when danger
combined with the generally quiet nature of
an operational solar farm can lead to a lack of 8. Mechanical injury
attention. General risks such as difficult terrain, Hand-tools, power tools, machinery as well as
reversing without a banksman and walking into such mechanisms as unsecured doors can
the structure supporting the solar panels require present a risk of mechanical injury on site
special attention
9. Weather
4. Strains and sprains The weather presents a variety of hazards, the
Lifting heavy equipment, often in awkward spaces most significant of which is the risk of lightning
or from uneven ground, presents increased risk strike during an electrical storm. Due to the metal
of simple strains or longer-term skeletal injuries structures installed on a solar farm an electrical
storm is more likely to strike the solar array than
5. Electrocution surrounding countryside. A solar farm MUST
Operational solar farms whether energised or be vacated for the duration of any electrical
not present a significant risk of electrocution storm. Working in cold and rainy weather can
to personnel. This risk is exacerbated by the cause fatigue and injury just as working in hot
nature and voltage of the electricity on site and sunny weather presents the risk of dehydration,
the impossibility of total isolation. Staff engaged sunburn, and sun stroke. Working during sunny
in electrical work obviously suffer the greatest days for undertaking maintenance and/or test
risk but everybody on site is at risk from step in site lead to sunstroke. To avoid this, drinking
potential and other forms of electrocution in the sufficient water and staying in the shade is
event of a fault. Specific training needs to be recommended

10. Wildlife and livestock specific site that determines how Health & Safety
The renewable energy industry is proud to provide (H&S) will be managed. Answering the questions in
habitats for wildlife and livestock alongside the the agreement will indicate which supporting forms
generation of electricity. Some wildlife however are needed and which can be removed. Safety of
presents dangers. There are plants in different all areas relevant to the development of the project
regions which can present significant risk, some should also be considered.
only when cut during vegetation management.
Animals. Although there are no animals allowed
inside the plant, as most of the solar power plants Site Job/Hazard and Risk Register
are fenced, animals such as rodents, snakes,
insects such as wasps and other wildlife as well This site-specific register is for the EPC service
as livestock can present significant risks. The provider to record significant hazards that are
nature of these risks will vary from place to place, involved in their work and cannot be eliminated.
and personnel need to be aware of what to do in The register is a live document that should be kept
the event of bites or stings. Snakes, spiders, ticks, updated during the work period. The Site Job/Hazard
bees, and bugs are common and pose several and Risk Register relates to site-specific hazards
hazards where snake bites could be lethal, spider and risks only and does not replace a company’s
bites can cause pain and inflammation, tics bites overarching H&S hazard register.
could result in tick bite fever, bees can cause
allergic reactions and bugs could fly into people’s
eyes. It is therefore important that all precautions Task Analysis/Safe Work Method
are taken to prevent or manage these incidents. Statement
Storage and application of pesticides, herbicides,
and rodent poisons also introduce health and The Task Analysis/Safe Work Method Statement
safety hazards. For example, Glyphosate was (TA/SWMS) register is a job- planning tool for higher-
very common in controlling vegetation at PV risk activities. “Higher risk” refers to activities such
plants and has been found to be carcinogenic. as working in a confined-space, asbestos-related
Mowing has several hazards including flying work, working at height, working in an excavation,
objects. Every job at a PV site should have safety working next to or over deep water, or working with
precautions identified and implemented any hazardous product or material. A principal or
main service provider can request a TA/SWMS at
As best practice, the following activities should be any time, for any activity, not just those listed above.
included in any site organisation plan and performed Hazardous Products and Substances Register
throughout the project design and EPC phases of a
project’s lifecycle. Managing the risks posed by the This register records every product, substance,
solar plant to the health and safety of people, both and material that is brought to or used on the site
in and around the plant, is a primary concern of all by subcontractors. You are required by national
stakeholders. Solar plants are electricity generating laws to record every product, substance, and
power stations and pose significant hazards present material used on-site that contains potentially
which can result in permanent injury or death. Risks hazardous ingredients. The register must be
can be mitigated through proper hazard identification, completed before any work starts on-site and
careful planning of works, briefing of procedures to updated as changes occur
be followed regular and well documented inspection
and maintenance.
Onsite Training and Competency Register
Specific Health and Safety Agreement This register records the training, qualifications,
experience, and competencies of your employees
The Site-Specific Health and Safety Agreement is working on a particular site. It must be fully
an agreement between businesses working on a completed before any work starts on the site and

updated as employees or circumstances change. Site Incident and Injury Register
This register is designed to be used in conjunction
with a subcontractor’s company-wide training and This register records any incident that caused, or
competency register. could have caused, harm to any person on-site. It is
also a useful hazard-management tool because it
identifies hazards that need to be controlled better.
Emergency Response Plan You should record these incidents in your company’s
own incident and injury register. This document is
The Emergency Response Plan (ERP) saves lives. It only for site-specific reporting.
must be in place before any work starts on-site and
updated as changes occur. A comprehensive ERP
is needed for any work that requires a TA/SWMS or Hazardous Works Notification
a permit to work, such as harness rescue (above or
below ground), extraction from a confined space, Certain activities are considered high risk and must
trench, or excavation collapse, and chemical or fuel be made note of before work begins. The service
spill. For an example ERP, see Annex C. provider controlling the site or activity must notify
the authorities.
Site Briefing/Toolbox Meeting Minutes

Risk Assessment Matrix and Hierarchy
Site Briefing/Toolbox Meeting Minutes provide a of Controls
means of structuring briefings and meetings in a
useful and logical way. The frequency should be The Risk Assessment Matrix allows you to assess
based on need, but still at regular intervals. It is the risk of a hazardous event occurring while certain
an extremely valuable meeting whereby a renewed activities are being performed. The risk assessment
focus on safe operations, and a discussion on defines the potential severity and probability/
upcoming risks and challenges for the day can be likelihood of a specific risk so it can be compared
had between team members. across projects and against other risks, be effectively
mitigated, tracked over time, and communicated.
Holding daily Safety Conversations provides an
invaluable opportunity to establish and maintain a The levels of risk of a hazardous event occurring
Safety Culture on site. cover: very low, low, moderate, high, and critical. The
severity of potential injury or illness covers:
Site Inspection Checklist • Catastrophic = multiple fatalities and extreme

damage
Inspection is a vital part of hazard management. • Major = isolated fatality or permanent disability
An inspection can identify an issue before it causes • Moderate = hospitalisation and either short- or
harm. Inspections range from specific (vehicles) to long-term disability
broad (sites)and differ from one industry or trade • Minor = medical treatment or first aid or both
to another. An inspection checklist, therefore, must • Superficial = no treatment needed
be customised to meet the specific requirements
of a job. Parties need to agree how and when The Hierarchy of Controls table takes you through
inspections will be carried out. The frequency of a logical flow of options, from most effective to
these inspections is determined by the Site-Specific least effective, guiding decisions on eliminating and
Safety Plan (SSSP) Agreement document. minimising hazardous events. For a template Risk
Assessment Matrix, see Annex D.

In addition to this, EPC service providers are often • License for usage and storage of fuel oil storage
mandated to arrange for safety provisions as per the tanks, pressurized vessels, explosive and
safety codes of the Central Public Works Department inflammable liquids, gases and chemicals under
(CPWD) and the Indian Standards Institution. (a) Explosives Act, 1884 read with Explosives
There are further safety provisions contained in Rules, 1983 and Gas Cylinder Rules. 2004; and
the Electricity Act, the Mines Act, the Contractual (b) Petroleum Act, 1934 read with Petroleum
Labour (Regulation and Abolition) Act, the Building Rules, 2002, if applicable.
and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, and • Registrations under Goods and Services Tax
any other applicable acts. These provisions apply (GST)
to every labourer involved in a project. Below is a
list of supplementary permits that may need to be • Any other clearance associated with work for
acquired and maintained depending on the works successful completion
going on on-site:

6
Personnel &
training

One of the challenges for EPC service providers is project’s lifecycle. The Project Manager (PM) is
to manage the expectations of all parties involved responsible for the project’s schedule and budget
in the process, during a relatively short period of and manages the processes around change, risk,
time. These stakeholders include the Asset Owner and issue handling. A PM can also be responsible
(or project developer), investors (if separate to the for ensuring quality, however, having a dedicated
project developer), insurance companies, operators, Quality Manager helps to decouple short-term
maintenance companies, utilities, (surrounding) cost priorities from long-term savings generated
landowners, suppliers, advisors and more. There through quality assurance. PMs manage Site
are also the EPC service provider’s own employees, Managers, Lead Engineers, installations personnel,
and subcontractors for mechanical and/or electrical and any third-party conformity assessors. For more
installation. information, please see section 6.3. Leadership and
Project Management.
Personnel must deal with a range of work, such
as selecting modules, creating electrical wiring
diagrams with an awareness of local site regulations, Quality Manager
civil and construction work, which for example can
include earth or mechanical work. Other examples The Quality Manager oversees the EPC phase from
involve supply chain and logistics, including a quality perspective. They ensure that quality
transportation or restrictions on work, access to requirements are fulfilled, and they are responsible
sites, manpower in general, and local restrictions on for Quality Planning, Improvement, Monitoring and
travel and accommodation. Control as described in this document.
The EPC service provider’s personnel typically have

the following skill profiles (for a useful skills matrix, Site Supervisor or Site Manager
see Annex B):
This role includes first level supervision of
• Science, technology, engineering, and subcontractors where administrative responsibility
mathematics (STEM), such as electrical or is involved. Work is reviewed for completeness and
geotechnical accuracy. Site Supervisors, or Managers, ensure
• Managerial and administrative e.g., finance, the planned tasks are executed on time and in
project management the correct sequence. They are the onsite service
• Technical e.g., doing groundwork, frames, provider lead and are responsible for implementing
mounting panels a PV power plant’s system as designed, per
equipment manufacturer requirements, safely and
durably. Site Supervisors facilitate the delivery of
6.1. Key roles QM processes on site. Occasionally, Site Supervisor
make decisions that will be unique to a project and
Teams require several skills to successfully could affect system safety, quality, and performance.
complete a solar PV project. Below are some of the Therefore, this role requires strong decision-
key roles for EPC personnel. Whilst these can vary making skills and quality implementation of design
according to the type of size of a project, these specifications. It is useful if a licensed electrician,
functions remain crucial: an electrical engineer, or a mechanical engineer
occupies this role. Typically, this role requires more
than five years of experience, working as a team
Project Manager member with professional staff, and demonstrating
comprehensive knowledge of theories and principles
The Project Manager is accountable to the Asset of the discipline. Site Managers are accountable to
Owner for the overall success of a project. This Project Managers and have overall responsibility for
role should be filled as early as possible in a site logistics, security, welfare, EH&S, on site data
and document management.

Lead Engineer specific education and training, for example
electrical installations must be performed by
Sometimes referred to as Architects, Lead Engineers qualified electrical engineers. Civil engineers should
are responsible for the overall plant design and will perform work on construction and foundations.
direct and coordinate other domain specialists Mechanical engineers are required for work on
and engineers to ensure all aspects of the design frames. To become an expert, a person needs to
conform to requirements and relevant standards. have a qualitative surplus of knowledge, skills,
Lead Engineers will also own the relationship with attitudes, and outstanding performance. This
electricity network authorities. They run the technical requires extensive experience and continuous
(and sometimes commercial) parts of tender guided learning. Guided practice or coaching can
processes for key service providers and coordinate help transfer knowledge and build expertise.
inspections, commissioning, and testing. Lead
Engineers are accountable to Project Managers, In the solar PV industry people often combine
supporting and consulting with Site Managers, and theoretical and conceptual knowledge with practical
managing relationships with potential third-party and experiential skills. When this is supplemented
Conformity Assessors. with self-monitoring and active and structured
feedback loops, it can help organisations increase
their expertise and perform better. It is important
Installation personnel that individuals and organisations plan, monitor and
evaluate their learning and work. Having experience
Installation personnel may hold additional across the different lifecycle stages of a solar
certifications, ensuring a high level of quality and power plant is important in developing expertise
safety. This can include training on proprietary and an understanding of the related complexities.
technology training from equipment manufacturers. Furthermore, being involved in varied problem-
Track record and experience with the materials used solving scenarios is important for building expertise.
are recommended, even if the product itself has In an industry that is growing rapidly and that has an
been certified. evolving set of standards, products, specifications,
recommendations, and EH&S developments it is
important to stay up to date with new developments.
6.2. Training
The purpose of training is to develop expertise. Some 6.3. Leadership and Project
personnel may have undertaken proprietary training Management
or education that exceeds training and experience
requirements for certifications. Internal training can, Management provides personnel with the essential
therefore, be used in some cases as a substitute for building blocks to process information that is directly
the certifications. applicable to the tasks they perform. Optimising
decision making within a team and amongst those
There can be national or local requirements for on- in leadership positions requires clear objectives,
site work, including EH&S compliance training and purpose, and the drivers that affect these.
conditions for reporting and investigating incidents.
Licenses can vary, in line with permitting, local Project management tracks deadlines, budgets, and
rules and regulations. For more information on quality, to achieve planned results. Hence the Project
the regulations and permits governing occupation Manager sets goals for individuals and teams and
health & safety and environmental protection, please drives performance management.
refer to chapter 5. Environment, Health & Safety.
Training in Project Management can provide
Formal education and training are important guidance, explain core principles, and give direction
preconditions for expertise. Several fields require on what constitutes good practice. Formal education

or processes, like ISO 21500 Guidance on Project are essential for an EPC service provider to function well
Management, or publications from associations and provide long-term career opportunities for staff.
such as the Project Management Institute (PMI)
are examples. However, a project manager does not Talent acquisition is about finding the right person for
necessarily need to be certified. A solid track record the right position at the right moment and creating
is recommended regardless of whether someone opportunities for career growth. It is important to
has received formal education. continuously identify, develop and grow emerging talents.
The process of identifying talent can be outsourced.
6.4. Working environment Establishing development plans for employees and

ensuring leadership succession can help to achieve
and talent development
a robust talent management strategy. Tailored
training and seizing learning opportunities can help
Like in any organisation, a transparent, consistent,
realise career potential within the solar industry.
accountable, safe, and accurate working environment

7
Transition
from project
development
to EPC

Project requirements are generally set up during 7.1. Selection of EPC projects
the development phase (which precedes the
EPC phase). They are mainly regulated under To select EPC projects and assess their quality,
project development agreements. These are investors and lenders scrutinise certain factors,
executed between the Special Purpose Vehicle which often condense into checklists and internal
(SPV), as the Owner of the project (or the Asset guidelines (also called “ex-ante KPIs”). The content
Owner, when the SPV has not been established of this support strongly depends on several
yet), and the local developer who is in the early stakeholder traits (strategy, experience, etc.). For
development phase conducting the initial example, for one investor an activity in a certain
engineering activities including the setup of the region might be excluded, whereas another investor
layout. In addition to technical activities, the might be specialised in that region. Furthermore, the
developer is also responsible for filing all the content of such support depends on the size of the
requests for the necessary authorisations and project, while the complexity of the assessment will
construction permits with the competent public increase with project price. In the selection of the
administrations. For these reasons, the role of EPC project risk analysis and mitigation will play an
the EPC service provider is marginal in the early important role. For more information see Chapter 4.
development stage. This is confirmed by the Risk Management during the EPC phase.
fact that the layout and the other prescriptions
to be met are generally outside the EPC service
provider’s scope of work. 7.1.1. Profitability
Therefore, in the present Guidelines, only three An important point for all stakeholders is the
points are discussed because they are important assessment of project profitability. Since the
for the transition from the development to the EPC business plan needs to be realistic and solid, it is
phase: important to make sure that all important cost
parameters have been considered. At least one yield
• Before the beginning of the construction phase study, done according to industry standards, should
the different stakeholders, especially the underpin expected production. Technical and legal
investors and lenders, must assess the quality of due diligence studies must make sure that this
the developed project, to come to a final decision production can be converted into revenue.
to build the project, sign the relevant contracts
(see Chapter 14. Contractual framework) and utter Quantitative assessment of a project’s profitability
the notice to proceed (NTP). Section 7.1. Selection follows these qualitative verifications. An important
of EPC projects discusses salient points for this KPI for a project’s profitability is the Internal Rate
kind of assessment of Return (IRR). “Internal” refers to the fact that the
calculation excludes external factors like inflation
• Then, the financial stakeholders must choose an and cost of capital. According to the IRR formula, a
EPC service provider. Section 7.2. Selection of an project can be pursued if the internal rate of return
EPC service provider discusses some important is greater than the minimum required rate of return.
selection criteria
• Finally, the project must be handed over to the 7.1.2. Technical quality
EPC service provider without losing important
information. Chapter 7.3. Handover from project One of the overarching engineering KPIs is expected
developer to EPC service provider discusses this performance ratio (PR) / expected yield, which is
critical procedure an input parameter into the business plan. Multiple

parameters determine expected PR. We can only Assessment of the following four areas provides
mention some of them here. A more detailed list is insight into the financial situation of a company:
part of a technical due diligence / yield study. However, liquidity, solvency, operating efficiency, and
other aspects may be equally important, for example profitability.
pre-qualification metrics (such as e.g., manufacturer,
and main component ratings) and design rating. Liquidity is the amount of cash and easily-convertible-
to-cash assets a company owns to manage its short-
The technical quality of a project depends strongly term debt obligations. An important KPI for liquidity
on procurement decisions. For more information, is the quick ratio (also referred to as acid test). It
see Chapter 9. Procurement. is defined as the ratio between quickly available or
liquid assets and current liabilities.
7.2. Selection of an
EPC service provider
QR should be > 1, preferably >1.1.
The following criteria (also called “ex-ante KPIs”),
among others, help to assess EPC service providers:
financial stability, expertise, prices, and procurement Solvency is a company’s ability to meet its debt
performance. obligations on an ongoing basis, not just over the
short term. The debt-to-equity ratio (D/E) indicates
the relative proportion of shareholders’ equity and
7.2.1. Financial stability debt used to finance a company’s assets. The lower
the D/E ratio, the more of a company’s operations
Investors need financial security for their are being financed by shareholders who do not
investments. Not all risks can be covered by charge interest, but more importantly, may enable
securities, and consequently, this means that the the company to raise debt capital in case needed. On
selection of an EPC service provider merits care. the flipside, a decreasing D/E indicates increasing
financial solidity of the company.
It is important to get as close as possible to the present-
day financial situation of the company. Credit ratings A good indicator of a company’s operating efficiency
(seen in relation to the Indian market) and audited is reflected by its Return on Sales (ROS, also called
statements from the last 2-3 years typically provide EBIT margin):
the most solid and indisputable financial information.
However, these usually only reflect information that is
at least six months old by the time they are published.
Furthermore, account definitions can vary from country
to country, making comparisons difficult. Where EBIT = Earnings Before Interest
and Tax and its Return on Capital Employed
An alternative to this is a bank guarantee where the (ROCE):
investor moves the evaluation over to a bank partner.
This does not necessarily give a better evaluation
of the financial viability than one’s own evaluation,
but it gives the financial insurance of a bank. This Where CE = Capital Employed =
obviously comes with a cost. The mere demand for a Total assets – Current liabilities
bank guarantee can be prohibitive for some projects
and can eliminate smaller, competent EPC service
providers from participating, even though they are
financially solid for their size.

However, it is to be noted that EBIT may contain may provide their references in a track record, to
tangible book value and depreciation risks. document their experience.
Therefore, EBIT may be a misleading metric where
there have been inappropriate depreciation or book Furthermore, the EPC service provider should
value assumptions. Financial return KPIs based on document that its staff has the necessary training
cash flow (like EBIT) positions may reflect a more and certifications to be qualified to build the PV
reliable evaluation base, though the percentage plant. In the case of subcontractors, their experience
must naturally be higher. in the field of activity should also be proven.
A good KPI for evaluating a company’s profitability Another sign of expertise is the quality approach
is its Net Profit Margin (NPM): of the EPC service provider. Apart from potential
verifications at the manufacturer’s production
site, non-mandatory quality checks during the
construction phase are recommended (for more
information, see Chapter 9. Procurement). The extent
of checks needs to be adapted to the size of the
A low NPM means a higher risk of the company project.
running into difficulties quickly if operating cost or
competition increases. A larger net margin indicates As part of the expertise, it should be made sure
its higher potential to invest capital into growth (but that the EPC service provider has a proper quality
should be seen in relation to fixed costs). management procedure in place.
Apart from the financial stability of the EPC service

provider, other means may secure the investor: 7.2.3. Price and performance of
bank guarantees (e.g., performance bonds), procurement
insurance cover solutions, or cash retentions. Bank
guarantees, in this example a performance bond, Those EPC service providers that are preferred
ensure that the EPC service provider can pay for partners of their suppliers get better conditions. This
liabilities and warranties that might arise from the may be a better price, but also better delivery time,
EPC contract. To receive this type of bank guarantee, secured delivery in case of shortage or favourable
the EPC service provider must pay a percentage to warranty conditions and claim solving.
the bank. The downside is that, besides the cost of
the performance bond incurred by the EPC service
provider, the impact on their available free liquidity. 7.3. Handover from project
Small EPC service providers often face challenges developer to EPC service provider
in accessing bank guarantees. In this case cash
retentions may secure the investor, i.e., the last At the contracting stage, when selecting or appointing
payment only occurs after the Final Acceptance an EPC service provider, the developer should hand
Certificate (FAC) is issued. over all the important documentation about the
project and preliminary works (see Annex E, section
Basic Design). This will be the basis for the scope
7.2.3 References and expertise of work negotiation with the EPC service provider
and the share of responsibilities between the Asset
Experience of the EPC service provider in the Owner and the EPC service provider. The main topics
construction of PV power plants in a particular to be discussed by both parties include the site
country, region, grid environment, for a specific description with its particularities, the permitting
installation type (ground-mounted, rooftop), size process and the associated constraints from legal
and technology can play an important role in the authorities and the technical specifications from the
selection procedure. The EPC service provider grid connection side.

7.3.1. Site description (including site • Aesthetic measures for visualisation of the
surveys and site data) project, landscape integration or sight impact
on the neighbouring buildings (electrical cabinet
To ensure the best understanding and the most design, height of structures, hedges to be
accurate design of the PV plant, a detailed description planted)
of the site and all associated constraints should
be delivered to the EPC service provider. To pass • Fire and emergency mitigation measures
on responsibilities to the contractor all preliminary
studies and surveys should be shared. These
documents will allow identifying the requirements 7.3.3. Grid connection process
and identifying the need for extended study. The
main information to be shared is listed in Annex E, The development stage also involves identifying the
section Basic Design. If applicable, some documents most suitable point of interconnection with the local
from the Pre-Construction Documentation should network and the best strategy for connecting. This
also be considered. is often discussed at early stages with the network
or grid operator, who is normally involved in the
technical specification definition, and sometimes in
7.3.2. Permitting process the completion of the works. To ensure timely grid
connection and smooth communication between
The developer is typically in charge of obtaining the the network operator and the EPC service provider it
building permit and all authorisations (e.g., from is important to share the following:
environmental authority) related to the execution
of the works. In the EPC contract it should be • Grid connection technical specifications, often
mentioned that the contractor needs to comply prepared by the local network operator
with the above related permits and authorisation
to maintain them. Specific aspects related to the • Network operating conditions to be complied
construction period or design of the PV installation with during the operation phase
can be requested by the relevant authorities and
might be made the responsibility of the contractor Additionally, in case of a specific Power Purchase
during the construction stage: Agreement (PPA), it is recommended that this
information is shared with the EPC service provider.
• Environmental mitigation measures to be If commercial aspects need to be kept confidential
implemented (plant trees, restoring grass, then the technical specifications with which the EPC
exclusion zones for levelling and grading works, service provider must comply should be shared, at
measures towards flora and fauna) the very least.

8
Engineering

The engineering design and modelling of a PV engineering and design requirements to perform
power plant is a crucial element of the EPC lifecycle, their respective services. Good communication and
as it guides the whole process of EPC, from timely adjustments of the engineering design along
conceptualisation to investment decisions and to the way are strongly recommended to ensure quality
the actual construction of the solar power plant. It is throughout the entire process.
also a highly iterative process in which inputs from
all the main stakeholders are considered, to generate In the following chapter, the engineering stage of the
the most suitable project plan for a successful and project has been divided into four sub-phases, which
efficient PV plant. are considered the common flow for solar PV project
development. However, some of these phases (and
As a best practice, all locally applicable standards milestones) may differ from the reader’s project
and permitting procedures shall be clearly described due to different companies’ business approaches
and considered at the very start of the design process. or philosophies, types of project finance, number of
Later, different stakeholders may have different stakeholders and project size.
Figure 2. Overview of engineering design stages, milestones, and deliverables
Investment decision/
Financial closure
•Y ield assessment
RfP/tender based on solar
pre-qualification resource
• Technical concept • ( P50-P90 values)
design based on •S caled plan of all Construction
custom requirements requirements in RfP •P
rovision
•P lan for feasibility •B OM definition acceptance
study parameters & quantities certificate
Basic Preliminary Execution

As built
design design Design
•S ite identification •G eotechnical •F inal •S

et of as built
•P V Technology survey and grid permitting and documents
definition requirements environmental •M
anuals and
• Preliminary layout •S olar resource considerations licenses
•E nergy yield assessment •E xecution layout •O
&M manual
prediction •G eneral string • IFC set of •S
pare parts
• Initiate permitting layout documents handover
•G rid connection •S ystem design: •C ommissioning
assessment trenches, LV-MV and test plans
• Indicative BOM layout, SCADA, •P rojects
surveillance, met management
station plan
•G eneral civil •E xecution BOM
design
• Preliminary BOM

Starting off as a basic technical concept, the
engineering design is itself a process that evolves Establishing design requirements and conducting
and is constantly refined as the project development requirement analysis are the most important
advances. It evolves into a detailed execution design elements in the design process, and this task is
blueprint issued for construction. Once construction often performed at the same time as a feasibility
and commissioning are completed, a detailed set analysis.
of “as built” documents is handed over to the O&M
service provider. On top of basic things like the functions, attributes,
and specifications, determined after assessing user
needs, some design requirements may also include
8.1. Basic design hardware and software parameters, maintainability,
availability, and testability.
The basic design concept is the first assessment
of the engineering design, and it is sometimes Maintainability requirements:
considered to be part of the early “project
development” (see Chapter 2. Definitions). At • The support structure should allow grass cutting,
this stage, the developer may not have a clear panel cleaning, and preserve a sustainable
understanding of the project site characteristics ecosystem
such as topography, hydrology, and obstacles. The
main objective of the design concept at this early • There should be enough space between PV rows,
stage is to verify the project. feasibility. Generally, and between rows and fences
the basic design concept includes an initial layout
(preliminary layout in Fig.4) for the plant, energy • On roofs, there should be maintenance walkways
yield simulation, grid connection assessment and
an indicative bill of materials (indicative BOM in • The fixation of string cables should keep the
Fig.4) for the main components only: connectors far from rain
• PV modules – manufacturer, model, • The drainage system should be designed to

and power class(es) remove water in an efficient way without high
• Inverters - manufacturer and model OPEX and to avoid flooding
• Tracking system (if present) - manufacturer
and model • The security system should be designed to allow
for efficient protection of the plant at moderate
Using simulation software to compare different OPEX
sets of module or inverter technologies, as well as
mounting structures and different plant layouts can • The monitoring system should allow for quick
be beneficial in choosing the optimal design in terms error detection and efficient fault analysis (see
of predicted energy yield and cost structure. SolarPower Europe’s O&M Best Practice Guidelines
– India edition for requirements)
Usually, the basic design concept with total installed
capacity, indicative layout design and single line • It should be possible to have affordable service
diagram (SLD) is sufficient for starting the permitting contracts for core elements like inverters and
process. switch gear
However, more detailed versions of the basic As the project advances, the developer will acquire
design concept may be produced to facilitate early more information, provided that the following
development permitting milestones or bidding in studies are performed: site assessment, solar
tender procedures, depending on the concrete case resource analysis, environmental studies, permitting
requirements. requirements and interconnection assessment.

The design can be updated respectively with: Preliminary designs build on basic designs, adding
a more detailed preliminary bill of materials for
• Preliminary Layout with Installed Capacity: Wp modules, inverters, mounting structures, trackers.
and Wac They also include information on grid connection
• Layout constraints and boundaries requirements, measuring tools, and communications
• Indicative bill of materials of major equipment: equipment. A balance of system (BOS) equipment
modules, inverters, type of structure, is also produced for budgeting purposes and
transformers organisation of request for proposals (RfPs) with
• Preliminary SLD suppliers and service providers for a granular
• Yield simulations with proposed losses estimate of the cost structure.
assumptions for availability, soiling, cabling losses
Then, project documentation is ready for the 8.2. Preliminary design

technical due diligence usually required by investors,
especially if the power plant is financed through The scope of preliminary designs for PV projects
project finance. can vary depending on input from stakeholders and
any requirements they have. Some developers may
An indicative list of documents is provided at have a preliminary layout, SLD and bill of materials
the Annex E, section Basic Design, as a guideline developed before reaching an investment decision
for the developers on how to initiate a project, / financial closure, leaving an EPC service provider
seek permitting and advance to the technical due to review and update it once they have been hired.
diligence stage. In other cases, engineering preliminary designs are
only developed by an EPC service provider once they
It is best practice that the design development is are under contract.
done in close coordination with the stakeholders
involved such as investors, local communities, In any situation, the present section and the Annex E,
banks, suppliers, grid operators, national and local section Preliminary Design are an indicative guideline
authorities, etc. The more detailed and stakeholder- for the phase’s steps and documentation.
agreed the design is, the better it will support the
development of the project’s financial model. Preliminary designs shall be part of the Pre-
Construction Documentation, where the layout shall
As a best practice, the technical viability of the design propose:
needs to be confirmed. The proposed suppliers of
the main components need to be checked for a • PV Array sections
satisfactory track-record and relevant warranties. • Inverter Stations
These steps are especially important when utility • Mounting systems or trackers
scale and commercial & industrial (C&I) projects are • Substation
considered. Those financial stakeholders who do not • Communication systems
have their own internal technical teams may instead • Monitoring systems
rely on specialised technical advisors to conduct the • Cable routes
relevant studies and reports and confirm the quality • Access roads
of the basic design. • Laydown areas
• Meteorological stations
More detailed basic designs usually provide • Site tracks
sufficient basis for making investment decisions • Manholes
or arranging finance. However, depending on the • Construction area
stakeholders involved, clearing that milestone may • Permanent and temporary buildings
require more precise site topography measurements
and regulatory and financial closure aspects to be A preliminary design must include a preliminary
accounted for in a preliminary design. bill of materials (preliminary BOM in Fig.2) for

budgeting purposes. The bill of materials gives quite Factory acceptance plans shall be defined for major
a precise indication of quantities, so that (binding equipment. In addition, commissioning and testing
or non-binding) term sheets can be collected from procedures shall be provided to the Owner/developer
suppliers and contractors. In projects where a for verification and approval.
turnkey EPC contract is signed, the design is only
approved by the Asset Owner or the developer, and It is recommended that a list of companies, major
the EPC service provider is responsible for providing machinery, number of personal involved in the
all the contracts and suppliers. construction phase and quality assurance measures
planned be included in project management plans. A
If an EPC service provider has already been involved method statement shall be clearly defined for each
in the design phase, the set of documentation project phase.
shall include the projects’ buildings, amenities,
preliminary studies, quality and testing plans, as A detailed overview of the documentation of the
well as the method statement, in addition to the execution stage shall be found at Annex E, section
layout and equipment specification. Execution Design.
At this stage, the Owner/Developer shall also

agree with the EPC service provider on the Project 8.4. As-built design
Management Plan, including the project reporting,
EH&S, quality, changing plans and document After the PV plant is accepted by the Asset Owner
register. or the developer via the Provisional Acceptance
Certificate (PAC) (see also section 11.3. Provisional
A detailed overview of the documentation of this Acceptance Certificate), the project enters the
stage can be found at Annex E, section Preliminary handover stage. This is the phase of the project
Design. where the EPC service provider shall deliver all the
design documentation that details how the PV plant
has been built (as-built design documentation).
8.3. Execution design This is important to emphasise, because during the
construction phase some of the execution design
As the preliminary design is changed and/or may change due to unexpected events, mistakes on
approved by the Owner, the EPC service provider shall the design, terrain, or underground difficulties.
move to the execution design stage, incorporating
all the relevant construction blueprints and working A detailed overview of the As-built documentation
instructions. can be found in Annex E, section As-built Design
(consider also IEC standard 62446).
Once the design is finalised, it shall provide all the
information necessary to request a grid connection, In addition to the as-built design, the EPC service
as well as all the necessary parameters for a grid provider should also organise other handover
impact analysis (if required). documentation, such as the O&M manuals, for the
Asset Owner and the O&M service provider. For more
A fully detailed specification of equipment and information, see Chapter 12. Handover to O&M service
bill of materials (including the spare parts) shall provider.
be produced. As part of the execution design, the
construction plans would have the final reports of
calculations and assessments for all electrical and
civil structures.

9
Procurement

The Procurement phase covers purchasing recommended to apply the general requirements,
components such as PV modules and inverters, as where relevant, to subcontracted activities such as
well as identifying and mitigating risks. It involves engineering, construction, or quality management
supplier selection and onboarding, and conducting activities. This section follows the different steps of
inspections, and tests to qualify materials to be procurement, from supplier onboarding to inspection
used in construction throughout the procurement and tests until completion of the procurement
process. process. The guidelines are independent from the
procurement process itself and remain applicable
This chapter will help stakeholders to identify risks whether the EPC service provider decides to work
in the procurement process of components (such as through recurring orders, single purpose contracts
PV modules, inverters) and to mitigate them through or project-based procurement.
suitable inspection, testing and qualification
mechanisms for individual projects. The procedures
shall be underlined with definitions of acceptance 9.1.1. Make-or-buy strategy
level and criteria.
Prior to engaging in a procurement process, an EPC
It is important to ensure that all the components of service provider must make a strategic decision
a PV system conform to the contracts that they are about whether to realise the component or service in-
procured under. This is particularly important when house (“make”) or purchase it from external sources
it comes to the bill of materials for PV modules. (“buy”). The decision will be guided by both short
Here, each material, and their variations and and long terms factors. To guide their decisions, EPC
combinations, needs to be agreed with the supplier service providers must assess the benefits and risks
(manufacturer) and documented to carry out an associated with both options. They should consider
effective assessment of components at a project the factors influencing the decision such as:
level.
• Long term internal strategy
• Availability and foreseen developments of
9.1. General procurement guidelines internal and external know-how and expertise
• Costs (investments, purchasing price, resources,
This section addresses general guidelines cost of ownership)
applicable to the procurement of any component of • Control over supply chain (lead times, quality)
a system and provides guidance on how to integrate • Political, social or environmental conditions
quality aspects into the procurement process. It is • Volumes of a product that are required
Figure 3. Make-or-buy decision matrix

Benefits of “make”
HIGH
PARTNERSHIP MAKE
Need for increased control
LOW HIGH “buy”

risks
BUY PARTNERSHIP
LOW

Frequently, developers are mandated to release 9.1.3. Integration of Quality Management
procurement tenders for goods needed for the EPC into the procurement process
phase. Government agencies or organizations also
release tenders for the supply of goods, services, Regardless of the procurement process they have
EPC or turnkey solutions for operational needs or defined, the EPC service provider is ultimately
for new requirements in lots. The bidder that offers responsible for providing the required quality level
the lowest price is awarded the lots that they made for the activities and components provided by its
offers for first (referred to as the bucket-fill method). suppliers. The EPC service provider must ensure that
This makes the procurement business competitive the quality of the components and services procured
and transparent. EPC service providers are required from external sources fulfil their internal quality
to adhere to the prices quoted in their bids. standards, and that risks related to procurement
activities are identified and mitigated.
Bidding is conducted via an e-auction through an
implementation agency. Bidders are required to Therefore, the EPC service provider shall define and
submit proof of entity documents along with the deploy the appropriate procedures for:
payment of an Earnest Money Deposit (EMD), a
Performance Bank Guarantee (PBG), and usually a • The selection, evaluation and monitoring of its
security deposit for paying damages if they exceed suppliers
their quoted prices.
• The monitoring it intends to apply on the products
and services procured from external sources,
9.1.2. Use of third parties such as quality requirements and evaluation
criteria, products release procedures, auditing
Involving third parties in the procurement process processes
can lead to the delivery of better products as
they can bring quality expertise and objectivity As best practice, EPC service providers should
to the judgement of products and suppliers. The compile their required processes, quality procedures
contractual agreement on the Quality Monitoring and requirements into a quality assurance plan, to
measures, be it by third-party or other means, often be made available to project stakeholders.
leads to more quality awareness on the supplier’s
side and to more stringent application of quality
standards. A contractual agreement should address 9.1.4. Communication of quality
the scope of the responsibility assigned to the requirements
third party and their authority to make decisions
on quality. In general, involving third parties in the To minimise the risks associated with procurement,
procurement process is best practice but not an quality requirements set by the buyer need
outright necessity. to be communicated and agreed upon in the
contract phase. The biggest gap in meeting
Third party technical assessments vary significantly in quality requirements comes from problems in
terms of thoroughness, accurateness, completeness, communication and interpretation, as illustrated in
reliability, validity, and transparency. A good guide the following figure.
to identifying a credible third-party service provider
may be the proof of an accreditation according to ISO
17020, ISO 17025, or acceptance by IECRE.

Figure 4. Typical gaps between expected and real quality delivered. Source: Bernard Meilland (1991). Key Success
Factors in Services Marketing
Word Specifications Experiences Personal

of mouth from the contract from the past needs
CUSTOMER
Expected quality
Gap 5
Perceived service quality
Service delivery / execution External

SERVICE PROVIDER
(incl. contacts before and after Communication

Gap 4
Gap 1 Gap 3
Translation of requirements
into specifications
Gap 2
Perception of customer requirements
by the service providers’ management
Quite often, ambiguity in contracts leads to on technical, financial, legal, and social regulation
variations in the delivery of a product. This makes and standards should be assessed. This requires
identification of issues and follow-up actions cooperation from suppliers along all these lines.
unnecessarily difficult. The diversity among PV When selecting a supplier, TIER-ratings give an
modules is a pitfall, as some combinations have not overview of the track record of the manufacturer,
been tested or come from different production lines. but only provide limited information on the quality
Furthermore, production in various factories also of a product. Therefore, selecting products just
requires sampling to reflect the source of products on their TIER rating is insufficient. Consequently,
for third-party verification testing. the selection must be based on product testing
accompanied by factory audits and a documentation
The criteria and recommendations in the rest of this review.
chapter should be applied as a minimum to ensure A technical rating of products can be based on
product quality and extended service life at reduced accessible product data and quality assurance
operating costs. information provided by the manufacturer. It can
be used as preselection criteria as a part of an
overall quality review process for PV power plants.
9.2. Management of suppliers The rating or scoring system of suppliers should
start before the sourcing phase. A rating may be
9.2.1 Selection of suppliers based on a questionnaire, which should include the
product-related data as well as quality assurance
Prior to signing a contract with a supplier, the EPC information, including:
service provider should determine the ability of
the supplier to consistently deliver products and • Technical Specifications
services that can meet the requirements in sufficient • Bill of Materials
quantities. Alongside this, suppliers’ performance • Certificates

• Warranties • Electrical safety tests
• Any beyond standard quality assurance/quality • Outgoing performance / output power
control measures (e. g. extended reliability test verification
programmes) • Evaluation of equipment and procedures for
• Manuals, labels, and data sheets quality control tests (such as solar simulators,
• Quality management in the production visual inspection tools, electroluminescence
(EL), insulation test)
• Quality assurance/control (storage and handling
9.2.2 Qualification of suppliers of materials, production areas, staff training,
claim handling)
While all products are usually qualified and • Handling of test and calibration equipment
manufactured under a valid quality management • Documentation of process data
system, variations in production lines, bills of • Process for handling faulty products
material, and general fluctuations in quality are still • Conditioning of the finished product
common in the solar industry. Quality measures • Review and comment on the warranty claim list
should be monitored during manufacturing and • Product traceability
shipping to get a full assessment of the quality of
the procured goods. It is recommended that one
carries out quality review measures for production Product qualification testing
supervision that are in line with international
conformity assessment standards. Alternatively, While type approval and safety certification are
on-site assessments, and product testing should be the minimum requirements to market any product,
done before signing a contract with a supplier. series production might show fluctuations in
production quality based on production lines or
material variations.
Documentation Review
It is therefore recommended to fix a particular bill
A general document review, submitted by the of materials and factories / production lines in
supplier, should contain: the purchasing agreements and pre-test products
• Product of certificates and associated reports accordingly. The product qualification testing
(all relevant market access documents) shall be based on standards and be product /
• Factory certificates (management system, component specific. Depending on the size of
laboratory accreditations) the project, extensive factory inspections may be
• Warranty condition performed, as well as a conformity testing, to ensure
• Review of recalls / claim handling that the components arriving on site have been
manufactured using the correct bill of materials,
and the manufacturing process has delivered the
Factory Inspection specified quality requirements. Further details are
listed in section 9.5. Specific requirements per key
Before production starts, a pre-production factory component.
inspection is recommended. The aim is to identify
issues in the manufacturing and quality assurance
processes that can have a negative impact on the 9.3. Supply control
quality of the components. The inspection should
consist of verification and evaluation of the following When large quantities are procured with a specific
processes and procedures: deadline, it is important to assess the supplier’s
ability to meet it by checking material supply as well
• Incoming inspections and preparation of as actual production capacity.
materials – warehouse
• Production process assessment

9.3.1. Pre-production control 9.4. Delivery
Prior to production, it is advisable to assess the 9.4.1. Post-production monitoring
factory’s readiness to supply the products ordered
within the agreed lead-time and at the right quality Contractually agreed upon monitoring for post-
level. production (before dispatch, after receipt, during
construction) is an important tool for assessing
Focus shall be put on: the consistency of quality and thus the degree of
• The availability of agreed components (bill of fulfilment of the contract. Sound statistical sampling
materials) at this early stage of the project helps avoid long-
• The status of maintenance and calibration of term failures. For example, if the components
the production and testing equipment have already been installed and show early faults,
• The communication of specific quality the cost of handling complaints and, if necessary,
requirements of the project and availability of subsequent replacement is more expensive.
related documentation Comprehensive testing would add significant costs
• The qualification of the production manager to to the project thus a standard like ISO 2859 should
apply the specific quality requirements be applied. The case to be considered in testing
should be agreed with the component suppliers
in the contracts. The level of a batch conformity
9.3.2. During production inspections should also be agreed with the component supplier
in the contracts as this may influence the financial
During production inspections are performed after risk assessment and thus affect the overall cost of
production of components for a PV project (e.g., funding. Typically testing will be in the production
modules) has started. line but should be witnessed and verified through
sample third party testing (see 7.4.3 pre-shipment
The inspection shall focus on the following topics: testing, factory acceptance testing). Typically, General
• Verification of production on the agreed Inspection Level I (visual and electric properties) and
manufacturing lines Special Inspection Level 2 (insulation and dimension
• Use of material in accordance with the agreed checks) with AQL Major 1.5 and Minor 2.5 is used for
bill of materials sample size definition.
• Quality Monitoring during the manufacturing
process
• Verification (spot-check basis) through in-line 9.4.2. Pre-shipment inspection
tests
• Verification of performance determination test Pre-shipment inspections are carried out on a
on a spot-check basis sample basis and used to release finished goods for
• Verification that contractually agreed shipment if they meet the agreed requirements. The
specifications are met inspections include:
Sampling plans and the acceptance criteria for • Visual inspection

required verification tests and inspections shall • Power verification
be agreed upon in advance. Any production • Electric insulation
inspection process is a compromise between cost • Label verification
and thoroughness. Ideally, manufacturers should • Verification of packaging and fit for shipping
be monitored closely enough to ensure that no
significant unobserved material deviation from the
agreed features goes unnoticed.

9.4.3. Pre-shipment testing, Factory document and therefore, the following subchapters
Acceptance Testing only give an outline. One of the biggest challenges
comes from time pressure during the construction
Critical tests that determine the conformity to phase combined with manufacturing or delivery
agreed ratings as well as quick quality monitoring problems that may occur during the project
tests are performed on random samples taken from execution. An additional challenge is related to
packages ready for shipment. It is important to agree reviewing quality, as the variety of testing and
on pass/fail criteria and clear criteria for shipment inspection services offered in the market is quite
rejection. Testing / inspection can be done at the wide when it comes to reliability, accuracy, validity,
factory site (Factory Acceptance Testing, FAT) or at viability etc.
a warehouse, depending on access and availability
of testing equipment. There is no principal reason behind underperforming
PV assets. System faults occur the most frequently,
A FAT shall include the following aspects: but individual components can also have defects.
• Assessment of quality standards It is absolutely crucial for EPC service providers
of production line / manufacturing site to ensure the quality and reliability of all the
• Verifying the quality system in place in the components that they use.
production line, considering procedures,
compliance of all staff and processes, Any standards provided in calls for tenders should
traceability, and problem mitigation be followed to the letter in requests for selection
• Mechanical specifications of the product (RfS). Please see below for comprehensive lists of
• Electrical specification of the product the standards required for key components by SECI.
• Documentation, including manuals,
SLDs and warranty
• Service and support quality 9.5.1. Modules
• Data management and display
Modules are the engine of the final system and
represent a significant proportion of a project’s CAPEX
9.4.4. Post-shipment inspection and labour corrective maintenance measures need
to be carried out. In the planning phase one should
Post shipment inspections are performed to check verify that modules are, in theory at least, capable of
whether the received goods hold all necessary operating in the given working environment for the
documentation and import papers / certifications anticipated lifetime and with the assumed durability.
(e.g. Certificate of Conformity). Furthermore, the It is often wrongly assumed that this will be the case
post-shipment inspection shall document any if the module type has passed the IEC 61215 / IEC
transportation damages to enable claims based 61730 type/safety approval test. These standards
on such damages. Again, a prior agreement on have been one of the most successful contributions
acceptance criteria is of major importance. to reducing problems in the array field but are only
a design qualification standard. They are limited to
evaluating known failure mechanisms and assume
a moderate climate. Examples of failure modes
9.5. Specific requirements
being missed include backsheet issues or Potential
per key component Induced Degradation (PID) and Light and elevated
Temperature Induced Degradation (LeTID) related
Generally, spelling out solid requirements for key
issues. The main impact has been to reduce early
components is one of the most mission critical
failures in the first few years in operation. It does not
items. The importance of this topic can hardly be
give any information on the durability of a module,
underestimated when it comes to the long term
nor does it verify the quality of the product actually
technical and financial success of a PV project.
being installed, just the general suitability of the
Going into great detail is outside the scope of this
product family for the intended application.

Ideally, one should verify whether the modules will needed for the energy yield calculation, but samples
operate at conditions represented by the tests they size can be small (e.g., S 1). In the absence of third
have undergone or account for an increased quality party verified PAN files it is advisable to base PAN
risk if conditions in the field are expected to be out files on independent measurements as simulations
of the test standard’s scope. An example of modules based solely on data sheet information may lead to
potentially operating outside tested specification high uncertainties in energy yield simulation.
could be building integrated mounting or systems in
arid climate zones, as such systems may run much Product qualification tests are typically destructive
hotter than they have been tested for. IEC TS 63126 or longer-term tests and sample sizes are kept
Guidelines for qualifying PV modules, components, smaller. It is important to perform tests on modules
and materials for operation at high temperatures gives that represent the material combinations (bill of
guidance on testing modules and components for materials) of the module type. The tests shall check
high temperatures. As some standards also allow the functioning manufacturing processes, the
variants of test conditions based on manufacturer’s production control and are helpful in determining
definition, reviewing the testing protocol alongside general workmanship. Some suitable qualification
the certificate is recommended. tests are defined in the standard IEC 61215-2,
which is the basis for type approval and design
Integrating testing requirements for PV modules qualification of PV modules. The sampling method
in the procurement conditions allows for claims is typically Special Inspection Level S 1 to S 3
against underperformance as well as identifying acc. To ISO 2859-1 with consideration of all bills
design deficiencies. PV modules from one system of materials and potentially different production
supplied by various production sites or batches may lines to be represented. Induced degradation tests
require separate assessment. (such as PID and LeTID) are screening tests and are
suggested if sufficient proof of resistance to such
There are three groups of quality tests described: degradation is not provided. Here sampling rate
1. Performance characterisation testing could be reduced to two modules per bill of materials
2. Qualification testing to minimise testing cost.
3. Module Reliability Tests (Stress Tests,
Accelerated Aging Tests) Product reliability tests shall evaluate the long-term
behaviour with a focus on module performance but
Performance characterisation testing mainly also on electrical safety. Several test sequences for
addresses the electric performance of the PV investigating a module’s resistance to environmental
modules and the condition of the cell interconnection conditions, such as high Ultraviolet (UV) level, strong
circuit (cell cracks or interrupts). Regarding the temperature changes, high temperatures combined
power warranty, the performance of the entire with high relative humidity and mechanical stress
delivery can be deduced from a random sample both from wind forces and snow loads are described
according to ISO 2859-1. As budget and timing is in IEC TS 63209 Photovoltaic modules – Extended-
usually critical, mostly General Inspection Level stress testing – Part 1: Modules. Depending on
based on the total number of modules per production the application and the project region the stress
batch is applied. As an alternative, a combination of level may vary. The suggested sample size is two
a smaller sample size (e.g., 50 per batch) and the modules per test and bill of materials. In particular
manufacturer’s flash list will allow a robust product polymeric material degradation has caused major
verification if the measurements have been carried reliability concerns in the recent years. Here the
out with a sufficiently low uncertainty and the technical specification, issued in 2021, provides a
service provider has an appropriate quality system. combination of damp heat testing, UV testing and
It is advisable to combine power measurement with thermal stress in its sequence three that is designed
electroluminescence imaging for crack detection. to screen for long-term backsheet failures.
The performance at low irradiance is something

Table 2 – Types of quality tests for PV modules
Sampling rate acc. to ISO 2859-1
Performance characterisation testing -

Maximum power determination at Standard Test Conditions (STC) GI
Efficiency loss at low irradiance S1
Electroluminescence inspection GI
Qualification testing -
Visual Inspection S3
Insulation test under wetting (wet leakage test) S3

Degree of ethylene-vinyl acetate (EVA) cross linking S1
Adhesion strength EVA/backsheet S1
Power loss due to light induced degradation (LID)* S1
Power loss due to power induced degradation (PID)** 2 modules per BOM and test
Power loss due to light and elevated temperature induced degradation (LeTID) 2 modules per BOM and test
Reliability testing -
Design suitability (extended stress testing i.e. damp heat, thermal cycling,
2 modules per BOM and test
humidity freeze, UV exposure, mechanical load), relevant for all BOM used
*Can be less considered for n-type technology.

**Can be less considered for systems that have anti-PID solutions.
EXAMPLE:
Sampling for a 50 MW PV Plant with 400 Wp of each of the 2 BOMs, sampling rate S 3 for
modules and two different BOMs. 62,500 modules comes to the same sampling
Total number of modules: 125,000 rate. Hence 32 modules would be chosen per
BOM.
Performance characterization testing:
G I level would lead to a sample size of 200 Induced degradation and reliability testing:
modules 2 modules per BOM per test would mean 4
modules per chosen test sequence are to be
Qualification testing: selected.
S 1 level would lead to a sample size of 8
modules; considering 1/2 of the modules are of Testing can mostly be organized pre-shipment
each of the 2 BOMs, sampling rate S 1 for 62,500 at a test centre close to production. Sampling
modules comes to the same sampling rate. should always be random or organized by
Hence 8 modules would be chosen per BOM. an independent third party. Post-shipment
testing can make sense, if pre-shipment was
S 3 level would lead to a sample size of 32 not possible, timelines did not allow it, or
modules; considering 1/2 of the modules are transportation damages are to be assessed.

In addition to the above, SECI requires modules to conform to the following standards:
Table 3 – SECI module requirements

Standard Description
IEC 61215-1:2016 Ed.1 Terrestrial photovoltaic (PV) modules - Design qualification and type approval - Part 1:
Test requirements
IEC 61215-1-1:2016 Ed.1 Terrestrial photovoltaic (PV) modules - Design qualification and type approval - Part 1-1:
Special requirements for testing of crystalline silicon photovoltaic (PV) modules
IEC 61215-1-2:2016 Ed.1 Terrestrial photovoltaic (PV) modules - Design qualification and type approval - Part
1-2: Special requirements for testing of thin-film Cadmium Telluride (CdTe) based
photovoltaic (PV) modules
IEC 61730-1:2016 Ed.2 Photovoltaic (PV) module safety qualification - Part 1: Requirements for construction
IEC 61730-2:2016 Ed.2 Photovoltaic (PV) module safety qualification - Part 2: Requirements for testing
IEC 61701:2011 Ed.2 Salt mist corrosion testing of photovoltaic (PV) modules Severity 1
IEC 62716:2013 Ed.1 Photovoltaic (PV) modules - Ammonia corrosion testing (if applicable)
IEC TS 62804-1:2015 Ed.1 Photovoltaic (PV) modules - Test methods for the detection of potential-induced
degradation - Part 1: Crystalline silicon (under conditions of 85oC/85% RH for minimum
192 hours)
As per the Solar Photovoltaics, Systems, Devices and Components Goods (Requirements for Compulsory Registration)
Order, 2017, PV Modules used in the grid connected solar power projects shall be registered with the Bureau of Indian
Standards (BIS) and bear the Standard Mark as notified by BIS.
Further, PV Modules should have been included in the Approved List of Module Manufacturers (ALMM) list as per MNRE Approved
Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019.
The following technical requirements also form part of SECI tenders:
Table 4 – SECI technical requirements for modules
Parameter Specification
Cell/ Module Technology Multi-crystalline or Mono-crystalline
Module Efficiency 17% for Multi-crystalline
19% for Mono-crystalline
Rated power at STC No negative tolerance is allowed
Temperature co-efficient of power Not less than -0.40%/°C
Application Class as per IEC 61730 Class A
In India, modules must be tested in labs accredited by the National Accreditation Board for Testing and
Calibration Laboratories (NABL). Please see below for a list of NABL-accredited labs.

Table 5 – List of NABL-accredited labs
IS Number :- IS 61730 Part: 1 Year: 04 - Photovoltaic Module safety qualification Part-1-Requirements for construction
Sl No. Name of the Recognized Laboratory Lab Code
1 ACE Test Lab 8166826
2 Bharat Test House Pvt Ltd 9135626
4 Delhi Test House 9127026
6 HI PHYSIX LABORATORY INDIA PVT. LTD. 7126926
8 Mitsui Chemicals India Private Limited 7166626
10 TUV Rheinland (India) Pvt Limited 6162126
11 UL India Pvt Ltd 6120526
IS Number :- IS 61730 Part: 2 Year: 04 - Photovoltaic Module safety qualification Part-2-Requirements for testing
Sl No. Name of the Recognized Laboratory Lab Code
1 ACE Test Lab 8166826
4 Central Power Research Institute 6101024
11 TUV Rheinland (India) Pvt Limited 6162126

Since 2021, all grid-connected projects in India must • Isolation issues
have modules installed by manufacturers on the • Blocked air vents, filters etc.
ALMM. This ensures that the modules are not dumped • Derating characteristic of inverters, high
by foreign players into the country, while creating a temperature shut off
level playing ground for domestic manufacturers of • Rating or spacing not suitable for location
solar modules. Having modules approved requires (e. g. high altitude)
being certified to BIS specifications, which mirror • Grid code compliance
IEC certification criteria for modules. Every project • Unavailable required national certification
in India is required to have BIS-certified modules. • Inverter metrology
• Interference with radio signals etc.
(electromagnetic compliance and adaptability)
9.5.2. Inverters • Optimisers
• Local transportation including unloading
The inverter is one of the most complex components opportunities
in a PV power plant and includes multi-functional • Local service
power electronics for optimising the power output.
This element is the interface with the grid and Inverters need to be chosen depending on system
reads and communicates operational data to the topology. There is no formal assessment available
monitoring system. A fault with the inverter leads currently, but a risk assessment when choosing
to an immediate decrease in power output, which a system topology considering performance,
grows in proportion to the size of the inverter. Owners maintainability, impact of failures, likelihood of
should not simply rely on data sheets but invest in failure and reparability. As an example, a central
quality review services, conducted by experienced inverter may have a higher efficiency, be cheaper
technical advisors. In a quality assurance process, to install, but in case of a failure takes down the
the key steps of design, manufacturing, installation, system and will take weeks to repair, while spare
and commissioning are independently evaluated, string inverters could be stocked, and any failure
to prevent potential issues that could decrease could be corrected in a short time. The evaluation of
performance across the inverter’s lifecycle. risks will depend on design objectives, but it should
be documented for later verification and any future
The key risk mitigation steps are a factory audit, the process improvements.
review of a manufacturer’s factory-out inspection
and the commissioning, which are presented in As per the Solar Photovoltaics, Systems, Devices and
section 9.3. Supply control, and section 9.4. Delivery. Components Goods (Requirements for Compulsory
Registration) Order, 2017, inverters used in grid
Aside from the general comments above, key areas connected solar power projects must be registered
for potential issues with inverters include: with BIS and bear the Standard Mark awarded by the
Bureau of Indian Standards. SECI also requires the
• Adaptation to voltage and power design following technical standards for inverters:
Table 6 – SECI requirements for inverters

Parameter Specification
Rated AC power As per design
Maximum input voltage 1500 V
Rated AC output voltage As per design
Tolerance on rated AC output voltage +/-10%
Rated frequency 50 Hz

Operating frequency range 47.5 Hz to 52 Hz
Power factor control range 0.9 lag to 0.9 lead
European efficiency Minimum 98%
Maximum loss in Sleep Mode 0.05% of rated AC power
Total Harmonic Distortion Less than 3% at 100% load
Degree of protection Central Inverter IP 20 (Indoor) / IP 55 (Outdoor), String Inverter IP 65
The inverter specifications above are required for all frequently than LCD and piezoelectric keypad
tenders in the country. Solar inverter manufacturers operator interface/display)
are obliged to meet tendering requirements, such
as the minimum requirement for an LCD display • LCD displays are outdated across all electronic
on the front panel of inverters. However, to make equipment/appliances as these are being
assessments and monitoring of energy generation remotely monitored and controlled
easier, newer models of solar string inverters
come with LED indicators along with Bluetooth + Further, the inverter supplier should be of adequate
mobile application features for display parameters/ experience as below
information.
• The inverter supplier should have supplied
This feature has been adopted by all major minimum 5 GW capacity globally or 500 MW in
manufacturers and is being adapted in some tenders India in the past 5 years (as on last date of the bid
while manufacturers are also adopting to this submission)
feature in their newer string inverter models due to
the improved user experience and other advantages: • The inverter supplier shall be Class-I local supplier
as per MNRE Order on Public Procurement
• Improved daytime visibility through the mobile (Preference to Make in India) to provide for
application when sunlight in abundance Purchase Preference (linked with local content)
in respect of Renewable Energy (RE) Sector dated
• Able to display a larger number of parameters 9th February 2021 and subsequent amendments
(more than LCD for data display on Inverters)
When planning a system, it is critical to match the
• Safer than LCD displays as they minimize operating characteristics of the inverter (efficiency,
unnecessary exposure to high-voltage electrical load-related derating, voltage window) to the real
equipment operating conditions. As per MNRE the Pass criteria
for Solar Inverters should be as per IS 16169 and
• Less strenuous O&M requirement as they are IS 16221 Part II, wherever applicable. The following
less prone to failures and require replacing less tests are required.
Table 7 – Real operating conditions tests for inverters

List of Tests Assistance of manufacturers for technical and operational issue of components
Working voltage and DVC To tap out points and connect oscilloscopes at various internal auxiliary and
Gate drive/control power supplies

Protection against shock hazard due To tap out point across the total bus capacitors and connect oscilloscope
to stored energy
Limited power source tests To overload the auxiliary, Gate drive/control power supplies with loads to check
the maximum VA power
Voltage test (dielectric strength test) To remove some components like MOVs, X/Y capacitors or branch circuits which
is connected across the ground
Backfeed current test for equipment To put current probes after the DC fuses in the input side and before the contactor/
with more than one source of supply relay in the AC output side of the inverter.
Backfeed voltage protection To tap out point to connect voltage probes after the DC fuses in the input side
and before the contactor/relay in the AC output side of the inverter.
Maximum temperatures - To put thermocouples in the all the critical components without damaging the
General inverter functioning
Single Fault conditions to be applied To open or short the critical components which is identified as its failure may
lead to shock or Fire hazard.
Example: DC bus capacitor short, IGBT D-S short (C-E), IGBT G-D short (G-
E), IGBT open gate (Disable the IGBT by shorting the G -E), output current
measurement (open any one phase), output voltage measurement (open any one
phase), control circuit failure (remove power from control circuit)
Power conditioning unit: Power Conditioning Unit Sufficient diligence needs to be exercised when it
(PCU) shall comply with IEC 62116 Ed. 2 Utility- comes to:
interconnected photovoltaic inverters – Test. The
specifications are as follows: • Specific requirements for inverters, including
compliance with IEC 61196, IEC 16221, IEC
• The rated/ name plate AC capacity of the PCU 60068-2, and IEC 160000 for India
shall be AC power output of the PCU at 50°C • Performance characterisation testing (INV File
generation for energy yield simulations)
• Maximum power point tracker (MPPT) shall be • Product qualification testing
integrated in the PCU to maximize • Product reliability testing according to
appropriate standards
• Energy drawn from the Solar PV array. The
MPPT voltage window shall be sufficient to
accommodate the output voltage of the PV array 9.5.3. Mounting structure (fixed tilt)
at extreme temperatures on-site
Racking systems hold valuable modules in place and
• The PCU output shall always follow the grid in ensure stability of the installation of the PV system.
terms of voltage and frequency. The operating Mounting components consist of various metal
voltage and frequency range of the PCU shall be parts with different coatings or materials, such as
sufficient to accommodate the permitted grid aluminium, alloy, stainless steel, or galvanised steel.
voltage and frequency variation Corrosion can occur due to the constant and long-
term exposure of these materials to each other, to soil

conditions and to environmental stresses, such as be hot dip galvanised mild steel, conforming
rain and moisture and other atmospheric pollutants to IS 2062: 1992, or aluminium with a suitable
like chlorides in marine environments or sulphur grade minimum alloy of 6063 or better. The
dioxide and nitrous oxides in industrial locations. minimum thickness of galvanisation for hot
As corrosion intensifies over time, serious structural dip galvanised mild steel should be at least
failures in racking and mounting components can 80 microns, as per IS 4759. The two quality
result in instability in the PV system and cause it to standards underline the importance of corrosion
malfunction. It lays at hand that quality of mounting free purlins, aluminium mounting brackets and
systems plays a tremendous role in each step from bolts and focus on the chemical composition and
manufacturing to installation, maintenance, and mechanical characteristics of the components
recycling. for racking systems in general. Information
on coating thickness (e. g., zinc coated steel,
Corrosion classification should be defined in anodised aluminium, etc.) can be determined by
accordance with ISO 9223 & 9224 for the given measurements in testing labs or on site. In India
site’s environmental conditions and subsequently there are no specific directions for the material
corrosion attack per year shall be established. used. EPC service providers are free to choose
When the structure is designed using IS 875 part 3 the appropriate coating material (Pregalvanized
provisions, all arrays must be subjected to eccentric coils 550GSM as per IS 277/ASTM A653 or HDG
loading, where the centre of pressure is expected as per IS 4759 or Galvalume AZ150/180 as per
to act 0.3w from windward edge of the canopy as IS 15961/ASTM A792) based on corrosion attack
per table 8 of IS 875 part 3. Since this code is not computed from ISO 9223. Selection of surface
specifically designed for PV solar farm situations, protection coating thickness shall be 25 years of
EPC service providers shall explore more scientific service of the plant minimum
approaches by conducting wind tunnel studies or
CFD analysis as alternatives, considering the actual • IS 800: 2007 General Construction in Steel, and
design characteristics for optimizing the structure’s IS 801: 1975 Code of Practice for use of Cold-
tonnage. formed Light Gauge, assure the quality of steel
components, aluminium components, and kits in
As lifespans of solar PV systems can reach up to 25 the manufacturing process
years, racking manufacturers must target a similar
life span for the racking materials. The following • The material quality should be verified on
norms and guidelines are of great significance and documentation basis (alloy, etc.). Spot checks
should be adhered to during the project development of the anti-corrosion coating thickness can
and during the construction stage: be performed in factory or onsite. Further the
dimensions and tolerances of the delivered
• The manufacturing process of mounting parts shall be verified against the available
systems should be in accordance with IS 875 documentation
Code of Practice for Design Loads. The norm
includes guidance in actions to be performed
on structures designed for use in buildings 9.5.4. Mounting structure (trackers)
and other civil engineering works. IEC 62548:
Ed. 1 Installation and Safety requirements for Tracker systems offer a significant additional
Photovoltaic (PV) Generators, and IEC 61194: complexity to a PV power plant system as it entails
1992 Ed. 1 Characteristic parameters of stand- moving parts being added to an otherwise static
alone photovoltaic (PV) systems system. When considering tracking, be it single axis
or dual axis tracking, in addition to the previous
• In addition, to prevent corrosion of the mounting section, the following points should be considered:
structure, the materials used for structures shall Tracker system selection

• Structural calculation according to applicable commissioning that may affect the warranty
standards in the country of the project and terms of the trackers
international codes like ASCE or Eurocodes.
This calculation should consider the specific • Complete reference of MWs supplied with the
conditions known or foreseen for the soil same tracker and Commercial Operation Date of
conditions. It is highly recommended to check the installations
whether the tracker system has undergone wind
tunnel testing, and in addition, CFD (computer • Justification in the form of studies, wind tunnel
fluid dynamics) modelling to simulate wind measurements or tracker measurements
situations. This is particularly important for showing that all the aero-elastic stabilities are
resonant frequency conditions that can occur at properly added to the structural calculation
wind angles of attack that can hardly be simulated mentioned above. The following instabilities
in a wind tunnel. Note that catastrophic failure should be considered as a minimum: flutter/
at resonant frequencies does not necessarily galloping, torsional divergence, buffeting, vortex-
require high wind speeds induced vibrations, and aero-elastic deflection.
Justification of the values used for the damping
• Tracker structures shall be designed in ration and natural frequency should be provided
accordance with relevant IS codes (Design shall
be as per IS 800 & IS 801, material grades as • Tracking and backtracking algorithms:
per IS 2062, and dimensions shall be as per IS implemented model and validation by a third
808/IS811/IS 1161). The interior & exterior rows party and/or field measurement. Optimisation
must be clearly defined while preparing the PV of the above on cloudy days. Adaptation of both
array layout, based on the wind boundary layer algorithms for slopes N-S and E-W on the terrain
conditions defined from Wind tunnel studies.
Basic Wind speed & other associated correction • After sales service: headquarters, historical
parameters shall be referred from IS 875 part claims, relationship of this department with
3. It is preferable to have independent tracker design department to allow retrofits and general
row-based design, backed up with self-powering approach for old trackers that are no longer
capabilities, and battery storage for better manufactured
reliability during the operation phase of the plant.
Minimum ground clearance shall be at least • Research and Development: partial or full
500mm if in case of bifacial technology, it can be dedication of the team, main headlines for future
increased based on best EOH/LCOE analysis & developments
hydrological recommendations
• Traceability of manufacturing components and
• Certification of the PV tracker against relevant general quality control applied at the factory,
standards like IEC 62817. Specific confirmation during the transport and further phases
that the components used in the trackers to be
supplied are listed in those certificates
Tracker system reception and installation
• Accelerated lifetime tests beyond those
associated with the certifications mentioned Once on site, the delivered equipment should be
above verified by collecting a sample of each element
of the structure which is then measured and
• Quotation of services associated with the verified against the specifications. Certificates for
supply of the trackers: construction monitoring, the steel and galvanisation are provided directly
installation monitoring, and commissioning from the manufacturer’s sub-suppliers with site
monitoring. Clear explanation of responsibilities measurements of dimensions and thickness.
during the construction, installation and

The installation process should be overseen by a transmission of power from an inverter to the power
representative of the manufacturer and the following evacuation network, DC side is for power transmission
recommendations should be a general checklist for this from a solar PV plant to an inverter. Checking the
stage, being part of the project commissioning stage. insulation of cables connected in strings should be
done to ensure that the connections and crimping
1. Torque verification according to manufacturer has been done correctly. This prevents isolation
specifications faults or leakage. Connectors must be appropriately
2. Tolerances in installation are within the levels sized, with temperature derating factors, safety
accepted by the manufacturer margins, and short circuit currents in strings being
3. Piles driving are tested (pull-out) showing considered. The following requirements for cabling
minimum recommendation by the manufacturer must be taken into account:
4. Tracker Control Units (TCUs) and Network
Control Units (NCUs) are installed and • The connectors must be MC4 compatible and
connected with configuration approved by the tested at 6kV AC voltage, 50Hz for one minute.
manufacturer and Owner’s engineer They should have a snap-in locking mechanism
5. Meteorological stations are commissioned made up of Polycarbonate, or Polyamide material
according to manufacturer recommendations suitable for outdoor applications with IP67 and
and testing to see whether the stowing strategy above protection rating when in mated condition
is working
• The connector must be ozone resistant, halogen
Special care should be taken if material is free, dust proof, non-conductive, UV resistant,
galvanised. To maintain the corrosion protection, the with a low flammability value
galvanisation must not be damaged by scratching
or any machining. The EPC service provider is • The connector must be suitable for an ambient
free to choose the appropriate coating material temperature range of -40°C to 90°C. The upper
(Pregalvanized coils 550GSM or HDG or Galvalume temperature limit shall be 105°C when connected
AZ150/180) based on corrosion attack computed
from ISO 9223. The protective surface coating • The connector system should be compatible with
thickness should be selected with the plant’s the PV modules’ connectors and shall conform to
minimum service period of 25 years in mind. EN50521
• The connectors shall be suitable for connecting

9.5.5. Cabling (including connectors) cables with a cross-sectional area up to 10mm²
which have been certified under EN50618
Proper cabling and connections must be ensured.
The list of partially serious problems is virtually • Inline fuses shall be checked with Solar
endless but here are a few examples: PV modules against the project’s specific
requirements
Cabling specification
• Cable cross-sections are undersized • Contact material shall be tin plated copper with
• Cross sections of safety fuses are undersized multi-contact technology
• Cables sheathing is made of inferior material
not capable of weathering (e.g., low UV light • The system shall be designed for minimum
resistance, low permeability) contact resistance between connectors. Contact
• Cable wire material is inferior (e.g., not resistance at termination shall be below 0.5 m Ω
compliant with strand construction class 5 or 6
as per IEC 62930:2017) • The connectors shall be provided with over
voltage category/pollution degree of CATIII/2
Cabling in a Solar PV plant can be divided into two
segments, AC and DC. AC side cabling is for the

• Minimum safety class-II shall be considered for Various standards refer to proper cabling and
connectors connection practices, such as IEC 62930:2017 resp.
EN 50618 (Electric cables for PV systems), IEC 62790
• The connectors shall be suitable for use with (junction boxes for PV modules), IEC 62852 for DC
crimped DC cables. The vendor should also connectors and IEC 62738 (Design guidelines).
provide a suitable number of spanners to
complete the connection work Qualification requirements may depend on the
application. For example, when cables are planned
• The connectors shall have good resistance to to be laid underground, they must be qualified and
ammonia and shall also pass a salt mist spray tested for this application. Having systems close
test to the coast or on floating systems, will bring
additional requirements like resistance to salt laden
DC Side Cabling: When the number of circuits in a atmospheres.
conduit are sufficiently numerous the result will be
an increased thermal effect. This will impact cable When defining system components, it is also
insultation during the operational life of a power plant. important to check compatibility of components
and their interfaces. For example, a connector on a
• Any DC cable crimping should be done with bi- module might mate to a connector on a string cable,
metallic lugs, using proper hydraulic tools for but its connection with the “mating” connector of
higher cable sizes to avoid damaging the cables another make may not be approved. Warranties may
or lugs exclude such cross connection, so caution should
be taken.
AC cabling:
• Insofar as possible, the thermal effects of the 9.5.6. Transformers

cable must be reduced in locations where cables
are laid under roads. This can be achieved by The power transformer testing (Factory Acceptance
increasing a cable duct’s diameter, increasing the Test) should be performed once the assembly
size of the cable, reducing the number of circuits is completed at the manufacturing facility. The
per conduit, and adjusting duct spacing power transformer procurement process should
include a design review and quality control of the
• Cables should have anti-thermite & anti-rodent manufacturing process. Factory Acceptance Tests
properties are done at the factory to make sure that applicable
standards are met, to assure high quality products,
• Proper care should be taken during MV AC cable considering IS 2026-P1, 2, 3, 4, 5 and IS 11171. Other
laying on cable open trays to avoid outer sheath standards that are commonly used include:
damage
Table 8 – Standards used for certifying transformers

Transformers IS:2026, IS:6000, IEC:60076
Bushings IS:2099, IEC:60137, IS:3347, IS:12676
Insulating oil IEC:60296
Bushing Current Transformers IS:2705, IEC:60185
Indian Electricity Act 2003, Bureau of Energy Efficiency (BEE) Guideline & CEA notifications

The following table summarises the tests to be performed on the transformers provided.
Table 9 – Tests to be performed for transformers

Test description Testing requirement
Measurement of ratio and check of vector group
Measurement of DC winding resistance
Measurement of No loss and current
Measurement of load loss and impedance
Measurement of Insulation resistance of windings to earth and between
windings
Separate source voltage withstand test on HV and LV windings To be conducted on all
Routine tests
Pressure test on assembled transformer transformers supplied
Paint thickness test

Visual Inspection and dimensional checks
Functional test on auxiliary circuits
Measurement of Insulation Resistance of windings to earth and between
windings
Induced over-voltage withstand test.
Transformer noise measurement.
Magnetic Balance Test.
Oil BDV test.
Operational test on marshalling box accessories.
Oil leakage test.
Polarisation Index test.
Tan-Delta and Capacitance Test.
Heat run test on at least 1 no. of transformer per lot offered for inspection
or 10% on total transformer.
In addition to the above, the vendor shall offer stage inspections for the
following:
Pressure test and vacuum test on tank and cover.
Core and Coil Assembly – Insulation test b/w core-clamp and tank,
magnetizing current and polarity check, electrical clearance to be
witnessed by Developer.
Measurement of Acoustic Noise level of the transformer To be conducted on one
Type tests Impulse voltage withstand tests- Chopped and plain wave impulse tests transformer of each
Temperature rise test design

In addition to the routine tests, the following type tests from
Internationally recognised laboratory like KEMA or any internal testing
agency shall be carried out. These tests may be exempted in case the
successful test certificates of tests conducted within last 5 years on
similar rating is provided from KEMA.
Lightning impulse-test.
Short-circuit test
Unbalanced current test: the value of unbalance current shall not be more
than 2% of the full load current.
Induced Voltage test with PD measurement (IVPD) prior to impulse tests To be conducted on one
Induced Voltage test with PD measurement (IVPD) after the impulse transformer of each
tests- long duration 1 hour design
Induced Voltage with PD measurement for 60 minutes

Special Tests Induced Voltage with PD measurement for 5 minutes
Measurement of Sweep Frequency Response Analysis To be conducted on all
Dissolved Gas Analysis of Transformer Oil prior to and post dielectric transformers supplied
tests and all tests.
Chemical Analysis of Transformer Oil
After erection on-site, transformer(s) are subject to other tests like (i) Measurement of voltage ratio, (ii) Check
of vector group, (iii) Magnetic balance test, (iv) Measurement of insulation resistance, and (v) Breakdown
voltage test on transformer oil.

10
Construction

This chapter describes the main activities, concerns, structure (WBS), deduce a time schedule with clearly
and requirements to be met during the construction defined work packages, including responsibilities/
phase of a PV plant. In this phase, the solar power accountabilities (responsibility matrix, for example,
plant is installed based on installation manuals a RACI matrix), interdependencies, duration, and
provided by suppliers to assure the proper storage, resources. This time schedule shall be the reference
handling and installation of mounting systems, for monitoring the project’s progress from both a
PV modules, inverters, transformers, cabling, physical and cost control perspective and needs to
monitoring system/sensors and other balance of be regularly updated.
system components. It also ensures the quality of
the installation as well as the long-term stability of
the PV system. 10.1.1. Site survey
A proper schedule and preparation of several The site survey aims at checking that there are
activities around the construction are important no physical and geographical constraints or
and should preferably be organised according to inconsistencies with the assumptions and technical
common project management techniques. This details defined in the Execution design (see Chapter
includes clear definition of objectives, activities, 8. Engineering).
and responsibilities (who does what?), time plans
and milestones (when?), cost planning, and quality The survey is also necessary for checking the actual
assurance. To achieve this, an effective and efficient status of the site and for planning the preliminary
communication, documentation and reporting flow activities necessary to prepare the site for the
between the Asset Owner, the EPC service provider mobilisation of personnel and equipment and the
and the subcontractors is necessary. This will help start of the main construction activities.
encourage accountability, potential construction
defects are promptly identified, high standards While the effective mobilisation of the EPC service
upheld, and monitoring the EPC service provider’s provider and their subcontractors usually takes place
performance is easier. once contracts enter into force (in general when a
notice to proceed is issued by the Asset Owner), the
The overall construction activity can be divided into execution of certain early works, sometimes also
two phases: firstly, the preparatory phase, related called preliminary works, is a project strategy that is
to the preliminary activities and secondly, the becoming more frequent.
construction implementation phase, including site
preparation, civil, mechanical, and electrical works With reference to construction activities set-up, the
necessary to complete the plant and bring it to the key topics to be investigated during the site survey are:
production phase.
• Mapping of the construction site (allotment and
boundaries, topography, etc.)
10.1. Construction
• Definition of the area for temporary facilities and
preparatory phase
storage/warehouse
The construction preparatory phase includes those
• Identification and mapping (geolocalisation)
planning and preparatory activities that ensure
of interferences to be considered during
the smooth realisation of the power plant. For this
construction, for which drones can be used
purpose, it is important that the construction project
is correctly set up according to project management
• Assessment of critical elements for construction
principles: the Asset Owner and the EPC service
and identification of mitigating actions (technical
provider define project organisation and objectives,
risks, rests of bombs, hazardous waste, but also
arrange main parts of the project in a work-breakdown
archaeological discoveries)

• Detailed survey of transportation facilities and they intend to use for different kinds of work,
routing and other logistic items accompanied by certificates of suitability and
maintenance and/or testing sheets
• Detailed site study for geotechnical and
hydrological aspects •
Construction plan/Schedule execution plan:
Work schedule which includes the milestones
• Execution of the pull-out test, necessary for the for various stages, execution times, the people-
final test of the selected foundation design of the days planning, the progress percentages, and
mounting structures the direct hours month by month planned for
individual activities, including testing, and a
general progress curve. The program may be
10.1.2. Stakeholder management modified and improved in the operational phase,
according to the needs of the construction site
The primary tool for understanding the context in
which the project is implemented is to identify and A construction plan and a mobilisation plan
understand the stakeholders involved in, or affected must be developed to guarantee the arrival and
by, the project. This allows one to become aware of accommodation of construction site personnel
their expectations and to determine the effective, and assembly materials. They also ensure that the
potential, or perceived impact that the project can activities carried out during the construction phase
have on them identifying methods for involving them. are coordinated effectively.
The identification of the stakeholders and their Construction Planning ensures that all construction
needs and expectations requires suitable knowledge activities are properly planned, scheduled, monitored,
of the relationships that exist between the different and that the right personnel are available (workload
actors that are present and active in a given context. management). This avoids delays resulting from a
For this purpose, all subjects that could influence or lack of resources or materials.
be influenced by the project must be considered.
A key success factor is the definition of a robust
It is important that the identification of the and detailed project plan that will ensure work
stakeholders is not limited to local and administrative is completed successfully and within a project’s
authorities but should also consider people and authorised scope.
organisations that are relevant for local communities,
as they represent their interests and identity. A project’s scope of work is formalised in the
Work Breakdown Structure (WBS) by the project
management team. The WBS represents a common
10.1.3. Construction plan preparation framework for carrying out any other project
management activity. Only the activities or the
The construction plan preparation starts with products identified in the WBS fall inside a project’s
resource planning and the mobilisation plan which scope and therefore can be planned and controlled.
includes the following information and documents:
A well-defined WBS:
• Construction site organisation chart: Document • Provides complete definition of the project
drawn up by all subcontractors (civil and electro- scope at different levels
mechanical) involved in a project which indicates • Allocates tasks and responsibilities
all the expected positions, the staff residence • Defines a numbering system, which is used as
times and the expected hours. reference in project plans, reports, and technical
documentation
• List of site vehicles and equipment: Document • Provides an input to integrate cost and
created by all subcontractors involved in a schedule data
project which lists the vehicles and equipment

• Ensures the alignment with the contracting element as a percentage of the WBS node to
execution strategy which it belongs
• Facilitates the roll up of cost, progress, and
schedule performance information for reporting The weightings used for calculating the planned
purposes progress should only be changed if the project
undergoes major changes that could jeopardise the
All parties (the Asset Owner, the EPC service provider representation of the physical progress.
and other service providers) involved in the project
should comply with the WBS and related coding Through the phasing of each physical progress
system. Clear and effective communication between contribution planned progress curves shall be
the Asset Owner, the EPC service provider and other defined to establish a baseline against which
service providers (and in general, all third parties actual and forecast physical progress data will be
involved in the project), and constant monitoring compared.
of the construction work progress according to the
WBS, are key to ensuring full alignment on scope of The construction plan should also define processes
work, objectives, deliverables, and timing. and procedures relating to the interface of the
construction team with the rest of the project
A detailed scheduling of the activities, including staff, in particular with the engineering, EH&S and
milestones, is essential to completing the work in quality management teams. It should be assured,
a timely manner. Proper scheduling of the works is for example, that all the project changes proposed
mandatory for correctly managing and controlling by the EPC service provider and other service
the progress of the project. If the work plan has not providers are checked and approved by engineering
been prepared appropriately, mistakes and delays department (change management). Furthermore,
cannot be identified, and corrections cannot be the construction activities should be verified in
implemented. Furthermore, the project plan needs accordance with the quality control plan and EH&S
to be updated regularly. procedures.
During the construction phase, the EPC service

provider and other contractors will have planning and 10.1.4. Check and finalisation
scheduling obligations ensuing from various contracts. of works permits
Service providers should be responsible for scheduling
the lower-level activities defined in the WBS. Country-specific legislation and regulations around
EH&S and construction activities are continuously
Based on the defined project schedule (baseline), evolving. For more information on Indian EH&S
the associated physical progress curve should legislation, please see chapter 5. Environment,
be determined. This establishes a reference for Health & Safety. It is critical to be sure that all works,
determining the physical completion percentage of administrative permits, and authorisations have been
a project and is key to effective project monitoring obtained to avoid breaching any legal provisions.
and management. Doing so could result in severe consequences, both in
terms of personal and administrative sanctions and in
To calculate a project’s physical progress, one must downtime and delay in the execution of the activities.
define specific calculation rules to apply to each
activity type, and determine weighting criteria: The contractor is mandated to obtain a list of permits
and approvals to be obtained and maintained by the
• Progress measurement criteria: These are contractor.
applied to each activity at the lowest level of the
WBS for its progress assessment 1. CEA approval of design drawings
2. CEA energization approval
• Progress weighting criteria: These are used to 3. Metering approval
calculate the “weight” of each task and WBS 4. Synchronization approval

5. Clearance from applicable Regional Load subcontractors. Throughout construction, drone
Dispatch Center construction monitoring flights should be carried
6. Compliance with First Time Charging (FTC) out periodically to monitor, record and report on
protocols (including part-commissioning if construction progress and quality. The data from
applicable) these scans can also provide valuable support to
7. Section 68 (of the Electricity Act, 2003) H&S, stock management, and adherence to local
approval for the transmission Line planning and environmental regulations. For EH&S-
8. Section 164 (of the Electricity Act, 2003) related best practices, refer to Chapter 5. Environment,
approval for the transmission Line Health & Safety.
9. Transmission Line Crossing approvals from
the Central Transmission Utility, State
Transmission Utilities, or other developers 10.2.1. Construction site organisation
(as the case may be)
10. Power and Telecommunication Construction site organisation refers to the
Coordination Committee (PTCC) approval for preparation of the site for the start of civil,
transmission line mechanical, and electrical works.
11. Right of Way (RoW) for transmission line
The effective mobilisation of the EPC service
A useful tool to ensure full compliance is the provider and related subcontractors usually takes
prescription and authorisation checklist which place approximately 60 days from the signature of
should identify all the relevant legislation and the contract. However, preliminary site preparation
regulations applicable to the specific project and and executive engineering may begin immediately
location. It also lists all requisites necessary to after signing.
start the construction activities (authorisations,
particular training requirements for certain works, In the mobilisation phase, service providers will begin
such as works at height, land lease agreements, etc). to mobilise direct and indirect labour, equipment
and means so that all planned activities can start
as scheduled.
10.1.5. Activation of external suppliers
(services and materials) Site preparation main activities are:
• Opening of the construction site
Once all preliminary activities have been assessed • Archaeological survey may be requested by
and completed, the construction activities are ready local authorities depending on the historical
to start. All subcontractors and suppliers must be interest of the site
activated according to the specific clauses of the • Removal of vegetation removal and the
relevant contracts and based on the scheduled superficial part of soil where foreseen (this kind
activities. The scope of this phase is to ensure of activity should be minimal in accordance with
that all resources are present at the site in a timely a positive biodiversity strategy)
manner to avoid any downtime and delay. • Staking and beating of the poles of the
structures
• Visual mitigation works planned
10.2. Construction
implementation phase
10.2.2. Civil works
The EPC service provider’s Construction Manager
Civil works refers to excavation for the construction
must supervise construction site activities.
of cable ducts, including foundation, MV overhead
They should coordinate with the Asset Owner’s
line supports, preparation of the areas where inverters
Construction Manager and the Construction
and DC boxes will be installed, distribution station,
Supervisor on the monitoring and control of
road construction, and any earthworks in general.

They must be planned and implemented to minimise “current electrodes” and the electrical potential
the interference and the overlap with the electro- (voltage) drop is then read using another pair of
mechanical activities described below, which are electrodes known as “potential electrodes”. The
often difficult to manage from a safety point of view. purpose of conducting ERT is to gather data
that can be used to estimate lateral and vertical
Key aspects of the civil works at any project site variation in soil resistivity values. Electrical
include surveys to determine: resistivity tests are carried out in accordance
with I.S: 10589-1983, Equipment for subsurface
i) The safe bearing pressure of the soil at the site sounding of soils
ii) Soil acidity and consequential corrosion rate
iii) The electrical resistance of the soil at the site c. Chemical Tests: These tests highlight the
chemical content of the soil and its acidity (and
There are a series of tests that can be conducted to therefore potential to cause corrosion)
determine the aspects above:
a. Standard Penetration Tests: This is carried out in d. Geology of the project site: If field investigations
accordance with IS2131-1981 SPT. The number reveal loamy, red soil this can suggest the
of blows required to drive a 50mm diameter split presence of rocks that also require investigating
spoon sampler to a depth of 30 cm, using a 65Kg
hammer, is recorded as “N” value. The results of e. Laboratory tests: These tests should be
all the penetration tests performed in each of the conducted in accordance with IS-2720
bore holes are shown in their respective bore logs. i. In situ density and water content
The test is halted if, (i) 50 blows are required for ii. Atterberg Limits
any 15cm penetration, (ii) 100 blows are required iii. Grain size analysis
for 30 cm penetration, or (iii) 10 successive blows iv. Shear test
produce no advance. In any of these cases, the
N-value is recorded as a “refusal” At the end of construction, areas impacted by civil
works must be restored to their initial conditions.
b. Electrical Resistivity Tomography (ERT): The
Electrical Resistivity Tomography method is a Water is used to clean PV modules and must be
geophysical technique used in geo-technical selected carefully to ensure excessive mounting
studies. In this method, a known current is sent structure corrosion is avoided. Below are a series of
into the ground through a pair of electrodes viz. tests that can be performed to determine this:
Table 10 – Tests to determine water to be used for module cleaning

S.No. Description Method of test
1. pH Value IS:3025 (part-11) : 1983 Reaf : 2017
2. Suspended Matter IS:3025 (Part-17) : 1984 Reaf : 2012
3. Organic Matter IS:3025 (Part-18) : 1984 Reaf : 2012
4. Inorganic Matter IS:3025 (Part-18) : 1984 Reaf : 2012
5. Chlorides (as Cl) IS:3025 (Part-32) : 1988 Reaf : 2014
6. Sulphates (as SO3) IS:3025 (Part-24) : 1986 Reaf : 2014
7. Acidity - Volume of 0.02 N NaOH required to neutralise a 100 ml IS:3025 (Part-22) : 1986 Reaf : 2014
sample of water
8. Alkalinity – Volume of 0.02 N H2SO4 required to neutralise a 100 ml IS:3025 (Part-23) : 1986 Reaf: 2008
sample of water

10.2.3. Electro-mechanical works (TRANSCO) and are owned by the state government.
The Power Grid Corporation of India Limited (PGCIL)
Mechanical activities mainly consist of: is the majority owner of the central network or the
• Withdrawal of materials from the Contractor Interstate Power Transmission System (ISTS), which
warehouse transfers power between states. However, in certain
• Assembly of metal structures cases, entities can bid for ownership of a particular
• Installation of PV equipment / panels corridor. The PGCIL or state TRANSCO is responsible
• Package / cabin assembly for construction of substations for the evacuation of
• Tests and inspections power, while the evacuation network from the power
plant to the substation is the responsibility of the
Electrical activities mainly consist of: developer themselves, unless state policy dictates
• Laying ground network (equipotential bonding) otherwise. The grid is managed by the State Load
• Laying DC (LV) solar cabling and related Dispatch Centre (SLDC)- owned by the state, the
components for connecting PV module strings Regional Load Dispatch Centre (RLDC), and the
to inverters using tools certified/qualified by National Load Dispatch Centre (NLDC), owned and
the manufacturer for PV cable-connectors manged by the Power System Operation Corporation
assembly. At present DC cabling configurations (POSOCO). Connection complexity depends on the
can vary a lot but nevertheless, laying DC distance between the plant and the substation, its
cabling is a key element of the electrical works conditions, and the technical solution identified for
• Laying MV cables from transformer stations to the connections. These works are the final stage of
the distribution station the construction activities and normally require the
• Laying LV auxiliary cables involvement of the TRANSCO/PGCIL, which should
• Cabin and field connections be scheduled well in advance.
• Tests and inspections
10.2.6. Checks and functional tests

10.2.4. Ancillary works
Once the plant is completely built and connected to
Ancillary works are activities that are not directly the grid, one must test that it works properly. It is
connected with the assembly of the “electric important that tests are carried out according to a
generation plant”. They refer in general to security detailed procedure agreed between the EPC service
(fencing, CCTV, lighting, etc.), vegetation care, provider and the Asset Owner.
internal roads, signposting, etc.
To this end, the EPC service provider must send the
These works, even if not prioritised, must not be Asset Owner a detailed plan of execution of all the
underestimated because they could delay the work necessary to reach Start-up (Start-up Plan)
handover of the entire plant. before the start of the Mechanical Completion and
Pre-Commissioning activities of the plant.
10.2.5. Grid connection The plan should include the following minimum
requirements:
Utility scale PV plants need to be connected to the • Definition of a start-up team
network, usually managed by the Transmission • Definition of the project functional units and
System Operator (TSO). In India, both the state and related sub-units
central networks work in tandem for transmission of • Definition of the plant sections that can be put
electricity across the country. The State Transmission into production in sequence
Utility (STU) and Central Transmission Utilities (CTU) • Definition of the schedule and procedures for
manage the grid with Load Dispatch Centres. STUs carrying out the preparatory tests for the start-up
are often referred to as transmission companies for each functional unit and plant section

• Description of how to perform the Mechanical 10.2.8. Training of Asset Owner and O&M
Completion and Pre-Commissioning tests on the service provider
functional units
• Description of the execution of the Commissioning As soon as the plant is ready for operation, after
tests on the functional units and on the entire MCC has been issued, the EPC service provider
system should arrange for a specific training for the Asset
Owner and the O&M service provider’s personnel
(that could be a third-party or the O&M division of
10.2.7. Mechanical completion the EPC service provider). This training can transfer
the knowledge and philosophy with which the plant
When the plant is completely built and connected to has been designed and constructed.
the grid, after a visual inspection, the Asset Owner
issues the Mechanical Completion Certificate (MCC) Training is important as it allows the O&M service
(See also section 11.1. Pre-commissioning.). provider’s staff to familiarise themselves with the
plant and its operations. Poor training standards
The aim of the visual inspection is to verify: can result in lower performance of the plant, due
• That all components and materials are present to delays in detecting system malfunction signals,
and in accordance with the project documentation resulting in longer downtime as faults are resolved.
• The compliance of the completed project This is also an opportunity for the O&M service
with the project documentation, the Technical provider to give feedback to the construction (and
Specification, and the current legislation engineering) team, especially if both belong to the
• The electro-mechanical completion of the plant same company.
• That all components are free of visible damages
that could compromise the safety of the The Asset Owner’s personnel should also receive
components and personnel training. This will help avoid misunderstandings
• That the components have been installed between the Owner and O&M service provider and
correctly and according to manufacturer manuals make their collaboration more efficient and effective.
• The correct identification and labelling of all
components such as inverters, DC boxes, cables, A comprehensive and detailed as-built
support structure rows, switches, communication documentation (see Annex E), manuals and
devices, monitoring elements, etc. procedures (Annex C of SolarPower Europe’s O&M
• The correct execution of the connections (see Best Practice Guidelines – India edition) should be
also section 11.1. Pre-commissioning) part of the training activities. For more information
• An aerial survey to validate the asset against its on the Handover to a specialised O&M service
design layout provider, please refer to Chapter 12. Handover to O&M
service provider.

11
System
Commissioning

Figure 5. System commissioning milestones. Source: World Bank Group
Construction Mechanical Commissioning Provisional

Completion Acceptance
Testing (5-15
days)
2 Year EPC Warranty Period
Provisional
Owner Final Intermediate Acceptance
Takeover Acceptance Acceptance Testing Certificate
Testing (12 months)
(12 months)
Final Intermediate
Acceptance Acceptance
Certificate Certificate
System commissioning is one of the most important 11.1. Pre-commissioning

stages of the EPC service provider’s work as it
closes the construction period and prepares the Mechanical completion is the final construction
PV plant for commercial operation. This crucial stage (see section 10.2.7. Mechanical completion)
step of the project includes performance and meaning that all principal components that are
reliability tests. These make sure that the PV plant part of the PV plant have been erected or installed.
is built according to the international standards and At this point, the EPC service provider will usually
industry best practices, and that it complies with conduct a detailed inspection of the works, possibly
the requirements as agreed with the Owner, grid accompanied by the Owner or any third-party
specifications and guaranteed performance levels. representative (such as a technical advisor). This
Tests are undertaken for all individual components option should be clearly stated in the EPC contract
from checking that components function to more clause referring to commissioning (if the Owner
detailed measurements and verifications of the intends to apply it). Activities carried out under
overall system. Successful commissioning and pre-commissioning should be detailed and agreed
timely achievement of the Commercial Operation in advance with the Asset Owner in a specific
Date (COD) is linked to the release of a milestone document.
payment as defined in the contract as well as the
release of the performance bond. It is, therefore, very The pre-commissioning activities fall within the
important that the contract clearly describes the construction phase and are mostly undertaken
requirements, criteria, documentation, and reporting in parallel to the last steps of electro-mechanical
required to complete the EPC service provider’s works. In large scale projects, the first blocs are
scope of work and handover to the Asset Owner and ready under pre-commissioning while other parts
the O&M service provider’s team. are still being erected.

The pre-commissioning phase includes the • Verification of the correct polarity and electrical
following main activities: continuity of all the strings
• Check all electrical connections
• Systematic compliance checks performed on • Completion and functional verification of the
each component of each system, performed in a earthing system
non-energised state
• Testing of appliances, energisation of cables, After execution of pre-commissioning activities,
testing of instrumental circuits, testing of circuit the plant will be ready for energisation and for the
breakers, etc commissioning activities.
During the pre-commissioning phase, the following Usually, a detailed checklist covering all
tests should be performed, as a minimum components and parts is used to make sure that
requirement: nothing is missing or incomplete. The works are
thoroughly checked through the following items:
• Mechanical integrity of the modules with visual
inspection and the correct wiring. Thermographic • Inverters
analysis (via drones) can be added at this stage • Modules
as a best practice • Foundations
• Verification of the nominal power of the installed • PV Module Mounting Structures
system carried out as the sum of the nominal • LV and MV Cabling
power at STC of all the installed modules • Transformers
• Verification of the correct operation of all • Protection, distribution centres and switch gear
auxiliary services (fire system, rodent protection, at the substation
forced ventilation of transformers, temperature • Combiner boxes
sensors, UPS systems and related storage • Civil works
systems, lighting systems, etc.) • Low and medium voltage installation works
• Control of all input signals to the SCADA system • Monitoring and security systems
• Verification of all power supplies of the auxiliary
services of the cabins These final checks should also include meter testing. The
• Commissioning of UPS systems and related meter should have one port for downloading metered
storage systems, SCADA system and of weather data through a Common Meter Reading Instrument
stations and environmental sensors (CMRI) and another port for remote communication.
• Verification of IP addresses on all equipment India has specific requirements for meters:
• Setting of all alarm thresholds on the equipment
Table 11 – Required accuracy of energy meters in India

Energy Accounting Meters (Utility scale) Meter accuracy
At Inverter AC output meters Not inferior to 0.2s accuracy class addition to other meters with 1.0s
Above 132 kV accuracy class or better
Energy Accounting Meter (Distributed Solar) Meter accuracy
Up to 650V Direct connected 1.0s
Up to 650 volts Current Transformers Class 0.5s as per relevant IS where separate Current Transformers are
connected used, or Class 1.0s as per relevant IS for terminal current range meters
Above 650 Volts and up to 33KV 0.5s
Above 33KV 0.2s

The location of meter to be installed should be: Regulatory Commission. They must also conform
to the Indian electricity grid code, and the Central
• at the inverter AC output terminals Electricity Authority Regulation Technical Standards
• on each incoming feeder of 3.3 kV and above for Connectivity of the Distributed Generation
• on the low voltage side of each incoming Resources, 2013, and any amendments thereof.
transformer feeder of low voltage (415 V) buses
The power generation equipment must meet the
Finally, the checklist should be provided to the following requirements:
Owner and their advisors, together with the
compilation of an initial list of construction • Circuit breakers and other interruption equipment
defects (commonly referred to as a “punch list” or must be suitable for their intended application,
“snagging list”). Counterchecking the EPC service and able to interrupt the maximum available fault
provider checklist and providing own observations current expected at their location
and items to add, as defined by the Owner or their
advisors, is recommended. This punch list should • Distributed generation resources and their
include only minor finishing works, the cost of which equipment must be designed so that the failure
usually equates to a small percentage of the overall of a single device or component does not
contract value. The contract also needs to specify compromise the safety and reliability of the
the timeframe for correcting punch list items, and electrical system
what the conditions are for granting Provisional
Acceptance if punch list items remain unfinished. • Paralleling devices of distributed generation
Once the Owner’s representative has issued the resources must be capable of withstanding
punch list, a meeting is required between them 220°/4 of the nominal voltage at the point of
and the EPC service provider to agree specific interconnection
resolutions for each item and determining if any
items are disputed. • Every time a power generation station is
synchronised with the electricity system, it must
Mechanical completion, as described in section not cause a voltage fluctuation of more than ± 5%
10.2.7. Mechanical completion, allows for further at the point of connection
testing activities to commence. In large scale
projects, this is often undertaken by batch and The Test Protocol must respect all the
delayed over time, as different parts of the plant are requirements contained in the Contract and its
in different stages of construction. basic content should include:
• Results of the visual Inspection

and related checklist
11.2. Commissioning,
• Test methodologies
off-grid and on-grid tests • Instrumentation used for testing
• Test program
11.2.1. Commissioning activities • Test conditions
• Test data
Commissioning activities include operational checks
• Results of the Pre-Commissioning and
and tests executed on energised electrical systems.
Commissioning tests
The Test Protocol must be agreed between the
• The start-up protocols issued for the key
parties before the start of the tests as part of a Start
components (inverters, transformers, etc.)
Up Plan, defined before the start of the Mechanical
Completion and Pre-Commissioning activities.
This testing aims to verify and certify that the plant has
been constructed professionally, according to the pre-
Solar projects must comply with the Electricity
established technical prescriptions, and in accordance
Grid Code, set by the relevant state’s Electricity
with the project and any approved variants.

Before the plant is energised, a series of functional It is a best practice to take a pragmatic approach
tests and measurements should be undertaken as to tests which require minimum levels of irradiance.
per the reference norm IEC 62446: Grid connected String tests and thermography should be carried
photovoltaic systems. Minimum requirements for out above certain irradiance minimums. Conducting
system documentation, commissioning tests and them at lower levels will provide reduced value from
inspection for all electrical commissioning. the results. If necessary, some tests may need to be
deferred until high season to be valid.
The testing procedure should be handed over to
the Owner prior to commencing the tests, as is In addition to the above electrical tests, all other
usually defined in the EPC contract. This allows the equipment should be tested according to the
Owner or advisors to review and comment on the manufacturer’s guidelines and industry best
testing procedure before implementation. At the practices to ensure that it functions properly before
end of the commissioning phase, the EPC service the energisation of the PV plant. All other equipment
provider submits a Test Protocol to the Asset Owner, and materials include:
summarising the results of the Pre-Commissioning
and Commissioning tests. • Meteorological stations and monitoring system
• Low voltage installation, civil works,
The following test regime shall be performed on and medium voltage installation
all systems. Any test indicating a fault should • Security system as well as
lead to default rectification and re-testing of the cyber-security system
components. • Sanitary system
• Firefighting system
On the AC side, all AC circuits, including AC cables from
inverters to transformers, transformers themselves,
and main MV switchgear should be tested according 11.2.2. Off-grid testing
to the requirements of IEC 60364-6.
The first tests to be conducted are the polarity and
On the DC side, the following tests shall be carried combiner tests which need to be undertaken while
out on the DC circuits and components forming the all strings are still disconnected.
PV array.
The off-grid tests should include measuring 100%
• Continuity test of conductor of the open circuit voltage (Voc) and the short
• Continuity of earthing and/or equipotential circuit current (Isc) of the module strings according
bonding conductors, where fitted to IEC 62446. Prior to starting testing, the Owner
• Polarity test must confirm the adequacy of the measurement
• Combiner box test devices to be used by the EPC service provider
• String open circuit voltage test (measurement uncertainty, calibration, etc.). A report
• Cable pull test and gland tightening with measurement results from all the strings will
• String circuit current test (short circuit or be presented by the EPC service provider in digital
operational) form, as an Excel file.
• Functional tests
• Insulation resistance of the DC circuits The VOC test is passed if all the VOC, string on the
• Module thermography (optional) tested strings is within 5% of the expected value
derived from the module datasheet. Note that most
Prior to achieving FAC, it is a common practice of the time, the theoretical value should be adjusted
to carry out module thermography on an agreed with the actual temperature recorded at the time of
sample of I-V curve tests. the measurements as it may be far from STC (25°C).

A commonly used formula is: they fulfil the requirements of the Load Distribution
Centre, or the relevant utility.
0.95 × Vth ≤ VOC, string ≤ 1.05 × Vth
Once the commissioning phase of all the plant
Where Vth is the theoretical open circuit voltage sections has been completed and the protocol test
for the strings and calculated as follows: issued, the Ready For Start Up (RFSU) certificate of
the plant is released by the Asset Owner and then
Vth = n × VOC × [1 + (TMOD - TSTC) × μVOC]
the On-Grid performance and functional tests can be
started.
Where:
• n = is the number of the modules of the
tested string 11.2.3. On-grid testing
• VOC = is the open circuit voltage of the
module as of the module manufacturer data Once the above off-grid tests have been successfully
sheet [V] performed, the PV power plant can be energised
• TMOD = is the temperature recorded on a at the point of interconnection with the grid, the
module representing the tested string [°C], main switchgear level, the transformer level, and
measured with a precision better than 1% the inverter level. The EPC service provider shall
• TSTC = is the temperature under standard test demonstrate that the overall system and equipment
conditions and equal to 25°C operates in accordance with the:
• μVOC = is the value of the power temperature
coefficient as of the module manufacturer • Equipment manufacturer specifications
data sheet [%/°C]. Negative value. especially for inverters, transformers and MV
equipment
The Isc test is passed if all the Isc,string on the • Grid Connection Agreement which should
tested strings satisfy the following condition be annexed to the EPC contract, or at least
its technical annexes regarding testing and
ISC,string ≥ 0.9 × Ith commissioning specifications
• Specifications set out in the EPC Contract and
Gi the design
Ith = ISC × G
STC • Any relevant Applicable Standard, mainly IEC
61727 and local grid code
Where:
• Isc = is the short circuit current of the module
as on module manufacturer data sheet
Inverters and transformers shall be commissioned by
• Gi = is the instantaneous irradiation on the
their manufacturer or an authorised representative
plane of array of the tested module string
of the manufacturer, using the manufacturer’s
[W/m2], measured with pyranometers with
specified procedures. Commissioning reports shall
max 2% measurement uncertainty
be issued in a format provided by the manufacturer.
• GSTC = is the irradiation under standard test
conditions and is equal to 1000 W/m2
All SCADA system equipment shall be commissioned
and tested using the manufacturer’s specified
procedures. Tests shall verify the correct operation
It should be noted that the short circuit current test of the SCADA system, meters, sensors, weather
is not intended to detect system underperformance station instruments, and all inverters, while verifying
but only used for fault detection in string cabling. the correct data input logging from trackers (if any),
Before energisation, the EPC service provider shall breakers, and other components monitored by the
verify the completeness of the bay at the substation, system. The SCADA system shall be fully remotely
the correct installation of all components, and that accessible. A SCADA system commissioning
protocol or report shall be provided.

A detailed inspection of the PV power plant’s does not exceed a certain proportion of the
substation shall also be executed, including testing contract price (typically 2-5%)
of its connection to the grid. This requires the
following equipment to be tested: • The Provisional Acceptance performance tests
have been passed (PR but also functional and
• MV equipment capacity tests in some cases)
• Control and Monitoring System
• Protection system • All equipment and sub-contractor warranties are
• Telecommunication & monitoring system transferred to the Owner
• Metering System
• Auxiliary supply equipment and back-up • The EPC service provider has provided the Owner
(UPS, diesel, etc.) with the initial or minimum stock of spare parts,
as defined in the contract (see also section 12.6.
When the commissioning of plant is completed, then Set up of strategic spare parts warehouse)
the plant undergoes a stabilization period. When it
starts to generate at full capacity, performance can • All as-built documentation has been provided to
be evaluated, and acceptance tests performed. the Owner (see also section 8.4. As-built design)
For more information on Indian grid code • Training of the O&M service provider’s teams
requirements, please refer to section 11.2.1. has been performed and relevant O&M manuals
Commissioning activities. issued
• Liquidated damages (LDs) related to performance

11.3. Provisional Acceptance or delays have been paid by the EPC service
provider
Certificate
• Any performance security or warranty bond
The Provisional Acceptance stage marks the end
required during the EPC warranty period has
of the construction works and obligations of the
been delivered to the Owner
EPC service provider. It means the Asset Owner is
giving their conditional acceptance of the works.
The PAC is signed off by the Asset Owner and, if
This triggers the two-year standard warranty period,
stipulated in the contract, can also be validated, and
across which the EPC service provider must prove
signed by an independent advisor.
a minimum level of performance from the PV plant,
as defined in the contract. At this stage, the plant is
also handed over to the Owner and the O&M service
provider which may be the same company as the
11.3.1. Performance Ratio test
EPC service provider or a third-party.
After the functional test, the PV system’s
performance, in terms of energy and power, is
The conditions for issuing the PAC may differ from
evaluated in the Start-Up phase. To validate the
contract to contract but the key elements are as
PV plant performance at Provisional Acceptance
follows:
phase, the PR test is conducted over a limited period
and compared to the guaranteed PR, set based on
• All commission tests have been successfully
simulations. The usual duration of PR tests is 7 to 15
completed, including Mechanical Completion,
days, depending on the contract. From an Owner’s
grid connection and energisation of the plant
perspective, having the longest testing period
possible is recommended, as this helps to check
• The noncritical punch list items have been
performance in a wide range of climatic conditions,
identified and signature have been provided for
and facilitates comparisons with simulated values.
corrections. The value of this remaining work

Usually, the testing period needs to fulfil minimum The PR calculations are based on the mathematical
requirements regarding weather conditions and definition formula, but each parameter can differ
plant availability such as: and have its own specifications from contract to
contract. It is important to check the consistency
• inimum irradiance threshold in daily values on
M of the formula and the input values definitions and
a certain number of days (e.g., 8 days over a 15- measurement rules.
day period with irradiance greater than 5kWh/
m²/day) which should be adapted depending on Performance Ratio is defined as:
the season of the test and specific conditions of
the project location
• Minimum irradiance threshold on a single day for

consecutive hours (e.g., irradiance over 500W/
m² during at least 3 consecutive hours in 8 days Where:
over a 15-day testing period), also to be adapted PR = Performance Ratio over a year (%)
to the season and project location Yf = Specific Yield over a year expressed in
(kWh/kWp) or peak sun hours (h)
• Total number of testing hours with irradiance Yr = Reference Yield over a year expressed in
above a certain threshold (e.g., 500W/m² for at (kWh/kWp) or peak sun hours (h)
least 20 hours in a 15-day period) These definitions are based on (Woyte et al.
2014) in line with IEC 61724-1:2017 and are
• Availability should be 100% during the testing common practice.
period at least at inverter level. Grid availability
should also be 100%. The SCADA and the For projects located in regions with high
environmental monitoring system must also temperatures and temperature variability, a
guarantee 100% availability of data throughout temperature-corrected PR methodology needs
the test period to be implemented to account for the weather
effects.
If the above conditions are not fulfilled within the
testing period, it is generally extended until they Temperature-corrected PR can be defined as
are. Conditions should be set pragmatically and follows:
potentially adjusted to avoid delaying the PAC and
leading to difficult negotiations and distrust between
parties. The time of year should be considered so that
unrealistic thresholds are avoided. The performance Where:
tests should ideally be performed during spring as PRT0(i) = Temperature-corrected Performance
this is usually when performance is at its peak due to Ratio for the period I (%)
better weather conditions. Poor weather conditions Yf(i) = Plant Specific Yield for the period i,
can penalise performance compared to simulated expressed in (kWh/kWp) or peak sun hours (h)
values (high summer temperatures, winter shadows Yr(i) = Reference Yield for the period i, expressed
or low irradiance). in (kWh/kWp) or peak sun hours (h)
β =Temperature coefficient of the installed
If the continuity of the test is interrupted due to modules (%/°C)
faults or events related to the malfunction of the P0 = Plant Peak DC power (nominal power)
plant or one of its parts, the test will be suspended (kWp)
and repeated from the beginning. TMOD(i) = Average module temperature for the
period i, weighted according to Specific Yield
If the causes of the interruption are not attributable to Yf(j) (°C)–- see below the formula
the EPC service provider, the test will be suspended
and will resume at the end of the interruption.

undertaken. This means the project must go a
certain period (e.g., 7 consecutive days, or 100
consecutive hours) without significant system
failure or malfunction. Furthermore, the project
must prove that it can run for a certain amount of
Where:
time without inverter failures or shutdowns, with
TMOD(i) = see above
full availability of AC and DC equipment, and less
Yf(j) = Plant Specific Yield for the period j,
than a certain threshold (typically 2%) of string or
expressed in (kWh/kWp) or peak sun hours (h)
tracking system failure (if any). If a system failure or
TMOD(j) =Module temperature for the period j (°C)
malfunction occurs, corrective action shall be taken
by the EPC service provider and the Reliability Test
is restarted the following day.
Finally, the measured PR is compared to the
guaranteed value based on the pre-construction Additionally, a Capacity Test may be required to
yield assessment simulations. A buffer between the prove that the installed capacity can reach the level
simulated value and the guaranteed one is generally promised to the off taker. This is usually based on
used by the EPC service provider. It is important the DC capacity of the plant, calculated based on the
to ensure that the design reference yield has been peak powers of the installed PV modules, as stated
updated to reflect any changes made during the on the manufacturer’s data sheets. Alternatively,
project. More specifically, the internal and self- this is calculated from the sum of the peak powers
shading factor should be checked for accuracy. The of the Flash Test of the PV modules, provided by the
guaranteed PR at Provisional Acceptance should manufacturer at shipment. These values must be
be presented as a monthly breakdown of the yearly signed off by an independent third-party.
simulation to ensure accurate comparison with the
measured PR for the testing period. Given the short
duration of the test, guaranteed PR at Provisional 11.3.3. Start of plant
Acceptance is only used as a validation criterion for commercial operation
the Owner’s “take over”. It does not usually trigger
performance liquidated damages as they are linked Once all performance tests described in the above
to the results of annual PR tests. If PR is below the sections have been completed, the Asset Owner
guaranteed threshold, corrective action might be issues the PAC and commercial production starts
undertaken, and testing should be repeated. (Commercial Operation Date).
Once the PR criteria and any other requirements To ensure a smooth and efficient handover to
have been met, the PAC is issued. The project operation activities, the Asset Owner should be
reaches the handover phase, which is the start of involved well in advance and participate in the
the operational phase and O&M activities. commissioning phase and performance tests. It
is also a best practice to involve the operations
function of the Asset Owner during the development
11.3.2. Other tests and engineering phase, so that an O&M perspective
can also be taken into consideration.
In some contracts, complementary tests can be
performed at the Provisional Acceptance stage. Comprehensive and detailed as-built documentation
These tests can reflect the requirements of the (see Annex E), manuals and procedures (see Annex C
energy off taker with the Power Purchase Agreement of SolarPower Europe’s O&M Best Practice Guidelines
(PPA), whether or not the system functions, or simply – India edition) should be part of the training
be used as additional quality assurance measures. activities. For more information on the Handover to
a specialised O&M service provider, please refer to
To prove the project’s ability to perform to its Chapter 12. Handover to O&M service provider.
maximum capacity, a Reliability Test can be

11.4. Intermediate and Final provider. This performance certificate constitutes
the full acceptance of the PV plant by the Owner and
Acceptance Certificate
the release of the Contractor’s obligations.
There is a standard duration of 24 months

The guaranteed PR (and therefore the guaranteed
(depending on the EPC contract) between the start
energy) takes into account any event causing non-
of the Taking-Over phase to the Defects Notification
production due to periods of plant downtime. Owner
Period. During this period, anomalies can occur in
and EPC service provider may agree, and provide
the facility, which the EPC service provider is liable
for this in the EPC contract, not considering certain
for. The anomalies must be resolved according to
special events. In general, it is reasonable to exclude
their nature and classification. The anomalies can
certain events that are outside the control of the
be classified as
EPC service provider (e.g., vandalism, plant stop
imposed by the Transmission System Operator) and
a) Pending works
Force Majeure events.
b) Insufficiencies
c) Defects
The EPC contract shall include provisions on how to
d) Failure or malfunction of equipment
deal with cases where actual performance is lower
than guaranteed performance. These provisions in
When a project is handed over to the Asset Owner
general are included in the penalty clause.
by an EPC service provider. It is imperative that
digital copies of the warranty agreement and the
Where actual performance is lower than guaranteed
corresponding contact person are published on a
performance, EPC service provider shall:
portal or are easily accessible on-site. EPC service
providers usually provide a performance warranty.
• Make all interventions necessary to ensure that
These can last for varying lengths of time after
guaranteed process parameters are achieved
the Commercial Operation Date (COD). During
• Liquidate both the production lost (difference
the warranty period, it is the responsibility of the
between actual and theoretical production during
Owner’s Operations Manager to monitor, calculate,
the period from PAC to the Final Acceptance Test)
report and follow-up the values of PR and other KPIs
and the estimate of the lost production expected
guaranteed by the EPC service provider.
for the remaining useful life of the plant
It is best to take annual PR measurements during

If the measured PR is below the guaranteed levels, the
the warranty period, as they do not include seasonal
EPC service provider is required to pay performance
bias. For smaller scale projects, this Defects
Liquidates Damages (LDs) up to a certain amount
Notification Period can be reduced to 12 months. It
(see section 14.5. Limitation of liability and Liquidated
is always recommended to carry out PR verifications
Damages) to the Owner for the compensation of
for at least one full year.
revenue losses. During the Intermediate Acceptance
phase, the LDs are based on the annual production
The calculation methodology is different to
shortfall and the electricity selling price of the PV
Provisional Acceptance and should be based on
plant. During the Final Acceptance phase, the LDs
long-term PR tests. The guaranteed performance
are also calibrated to reflect the loss of revenues
ratio should be adjusted to account for module
that are expected for the full project lifetime or
degradation over the first and second years of
duration of the Power Purchase Agreement. This is
operations. Should the measured PR be above
usually calculated as the Net Present Value of future
the expected threshold of guaranteed value, then
revenues shortfall linked to the PR shortfall. Below
Intermediate and Final Acceptance certificates
is an example formula for additional LDs at Final
are issued accordingly. The Owner can then
Acceptance:
issue a performance certificate and release the
performance warranty bond of the EPC service

Other requirements at Final Acceptance stage should
include an inspection of the whole plant, including
the civil works, electrical infrastructure, every piece
of equipment and device installed, and the auxiliary
systems, to verify that the EPC service provider is
Where: leaving the plant in optimum condition. This should
• j = the year index, starting from 1 and ideally be done in the presence of the Owner and
increasing by one until 18 (if 20 years an independent third-party (technical advisor). All
lifetime) existing defects must be solved as a condition for
• HPOA = the annual expected irradiance on acquiring the Final Acceptance Certificate (FAC).
the modules plane, as estimated in pre- Spare parts can also be replenished in accordance
construction energy yield assessment (P50) with the O&M contract requirements to ensure a
and validated by an independent third-party smooth transition between both service providers.
• PSTC = the peak nominal rated power of the
installed modules in standard measuring Additionally, further testing such as repeated
conditions as per the datasheet in kWp module thermography, across all modules, should
• PRj = the effective PR during the period be performed as a best practice, preferably using
between successful completion of the aerial inspections during the period between PAC
Intermediate Acceptance Tests and the and FAC. This is to ensure that any issues identified
Final Acceptance Tests and adjusted for can be resolved before the date for Final Acceptance.
each j-the year following Final Acceptance It will enable the identification of any early-stage
to allow for module degradation degenerative issues. These activities can be included
• PRjguaranteed = the guaranteed PR for each j-the within the EPC service provider’s scope or under the
year following Final Acceptance adjusted to responsibility of the Owner at their own costs.
allow for module degradation
• GSTC = the global radiation impinging on STC After the Final Acceptance Test the Owner shall issue
(1 kW/m2) the FAC and shall take over the full responsibility of
the plant.

12
Handover
to O&M service
provider

This chapter describes the procedures for properly the security service provider, and grid operator,
transferring the O&M activities of a PV plant from as described in SolarPower Europe’s O&M Best
the EPC to the O&M service provider. After the FAC, Practice Guidelines – India edition
when the Asset Owner takes over the full contractual
responsibility for the plant operation, it is industry When the O&M contract includes guarantees,
practice to hand over the long-term O&M activities such as availability or PR, it is essential to have
to specialised third-party O&M service providers. enough historical performance data to get a proper
These specialised service providers are organised to understanding of component status at take-over
provide best in class O&M activities. Their technical and avoid the risk of paying liquidated damages.
departments are designed to provide high level The availability of centralised, cloud-based data
remote monitoring of failures and performances, collection and analysis systems are an emerging
timely on-site maintenance activities, project best practice which allows data (both historical and
management services, and strategic spare parts real-time) to be consistently captured, shared, and
management etc. (For more information and best used by all stakeholders.
practices, please refer to SolarPower Europe’s O&M
Best Practice Guidelines – India edition.) In the following sections, best practices for
handovers are described.
The handover process between the EPC service
provider’s O&M phase and the specialised O&M
service provider is critical and must be properly 12.1. Transfer of the documentation
managed by the Owner. This avoids loss of
information, prevents possible underperformance, A proper and complete set of documentation is
and avoids hidden costs. The handover includes crucial to ensuring proper management of the
several steps, which are mainly attributed to three lifecycle of a PV plant. The O&M service provider will
macro-categories of activities: use it for O&M while the Asset Owner may need it for
administrative or commercial purposes. Therefore,
1. Providing documentation such as drawings, at this stage it is best practice to involve the Asset
specifications, projects, diagrams, policies, Owner, or a representative, to make sure all parties
standards, procedures, parts lists, and reports of have full copies of the documentation.
construction monitoring, commissioning tests
etc. in appropriate file formats, necessary for the A list of all required documents can be found in Annex
functional, safe, and efficient operation of the E of these guidelines, and Annex C of SolarPower
system (see also Annex C of SolarPower Europe’s Europe’s O&M Best Practice Guidelines – India edition.
O&M Best Practice Guidelines – India edition) It is important to underline the file format that
must be used. All the technical drawings should be
2. Granting access to the plant site, to familiarise received both as a PDF with stamp and signature
the O&M service provider with the facilities and and as an editable format (.dwg). Having an editable
the equipment and components installed. One format of the drawing has two main benefits: (1) it
should allow the O&M service provider sufficient makes it simple for the O&M service provider to
time on site to explore the facilities and perform update the as-built documentation following any
all the required measurements, to avoid hidden major interventions or revamping, (2) it limits the
issues afterwards extra cost for the Asset Owner of redoing of the
documentation. Unfortunately, often much of the
3. Starting the O&M activities including the set-up plant engineering information is provided in formats
of a proper organisational structure, including such as PDF, JPEG, TIF instead of AutoCAD. While
control room service, project managers, site these formats are useful for human readers, they
technicians, subcontractors, etc. The O&M are of limited value to modern O&M systems as they
service provider must also handle the related require conversions or manual data entry to convert
logistics such as warehouses, provision of spare unstructured documents. Data integrity problems
parts, and relations with third parties such as often follow, which can result in operating mistakes.

Table 12 – Timetable for document handover between EPC and O&M service providers
Document Category: Timeline
All drawing & design basis report 15 days before Construction start
All as-build drawings Within 60 days post COD
Detailed Project Schedule Minimum 10 days before project start date
Warranty, SLA, Escalation matrix of equipment Minimum 10 days before COD
Minimum 15 days before equipment manufacturing start
Datasheets, GTP, GA, Manuals (installations & O&M), BoM
at Vendor’s site
To be submitted after commissioning but before
Manuals (Installation & Operation)
acceptance test
The EPC service provider shall provide the following cannot choose counterparts and renegotiate
documents as per the timelines mentioned below. conditions easily. Therefore, the transfer of
A detailed checklist of all the documents to be contracts needs some time; three months is a
submitted by the contractor shall be mutually reasonable period. In some cases, a contract needs
finalised. to be terminated and a new service provider needs
to be found.
In addition to the documentation package described
above it is important to give full visibility to the O&M It is best practice for contracts to include a clause
work done during the warranty period. Therefore, the about this kind of transfer from the beginning. This
following list of information should also be handed over: helps avoid degradation of contract conditions as a
result of the handover. A common inspection with
• Maintenance reports done by the the new contract parties should allow for better
EPC service provider understanding of the current situation and help
• Hourly production data of each define priorities for the coming period.
inverter and meter
• Hourly irradiation values measured on site
• Description of any force majeure event that 12.3. Access to monitoring and
occurred, such as thefts, grid failures or
communication systems
outages, equipment replaced under warranty
• Output of any measurement test conducted
Adequate time for the transfer of Monitoring
and communication systems should be factored
into any handover. Common problems include
12.2. Transfer of existing contracts passwords not being given to the new O&M service
provider and proprietary code in the Programmable
Contracts require special handling during handovers. Logic Controllers (PLC). Another problem may be the
They may have been executed with subcontractors use of the EPC service provider’s communication
such as local field electricians, companies who infrastructure for certain functionalities. For
take care of the vegetation, specialised support example, the use of the EPC service provider’s
companies, internet service providers etc. Virtual Private Network (VPN to give secure access
Further examples include service contracts with to network devices.
manufacturers of inverters or security systems.
The transfer of contracts is critical because the The most problematic point is probably the existence
obligations and responsibilities therein are also of proprietary PLC codes. Even if the EPC service
transferred. Furthermore, the new service provider provider agrees to give access to this code (which is

normally not the case), it will be difficult for the new be followed and, in the future, this standardisation
O&M service provider to understand and develop should be common to all manufacturers.
it further. This requires thorough documentation
of the existing code, and the EPC service provider The Asset Owner or interested party that wants to
would have to agree to hand this over to the new benefit from Predictive Maintenance should, as a
O&M service provider. If this is not the case, the only best practice, select “intelligent” equipment set
solution is to replace the existing PLCs with those of with sufficient sensors, and opt for an appropriate
the new O&M service provider. monitoring software system which should be able
to provide basic trending and comparison (timewise
As an alternative, one could use a monitoring or between components and even between PV sites)
service supplier from the beginning. In this case the functionality (minimum requirement).
transfer of the Monitoring System can be handled
like the transfer of a service contract. Or, if the
contract is with the SPV, the transfer would involve 12.4. Organisation of an inspection
the provision of user ID and password to the O&M
service provider. On the other hand, this alternative On-site technical inspections are an essential step
has inherent disadvantages like a different cost of the handover process because they allow the
structure, and less flexibility. O&M service provider to document and assess the
PV plant’s status. These procedures go beyond the
Using open solutions with open interfaces, freely as-built consistency checks, which are based on the
accessible documentation and specialised support set of documents accompanying the PV plant (see
companies is best practice. However, this still needs the complete list of documents in Annex E). These
to be developed on a large scale. inspections are also useful for familiarising the O&M
service provider with a site’s geographical features,
Due to the complexity of the handover or migration logistics, and surroundings.
of the Monitoring and communication systems,
a sufficiently long transition period should be From a technical perspective, handover inspections
planned, for example 6 months. During this period, (in compliance with the inspection criteria defined in
the EPC service provider should be obliged to the IEC 62446-1:2016), despite their similarity to the
cooperate with the new O&M service provider. The inspections done during (re)commissioning, have
conditions of this cooperation should be described a slightly different approach and focuses on the
in the EPC contract. aspects below.
Ensuring a smooth handover of monitoring and To ensure an accurate and complete inspection on-
communication systems is vital for the long-term site, the EPC service provider and the Asset Owner
efficacy of a solar PV power plant. An O&M service should allow the O&M service provider sufficient
provider needs to be able to tell instantly from time to perform all the detailed checks that are
monitoring software what state any component is requested. This means that the handover inspection
in and determine deterioration trends to improve may last several days, depending upon the size
the amount of predictive maintenance that they and characteristics of the plant. As best practice,
carry out. O&M and EPC service providers should plan the
inspection well in advance, agreeing upon a written
As a best practice, the EPC service provider should schedule for the activities to be performed on-site,
facilitate the complete list of status and error with an indication of the role that the personnel of
codes produced by the device together with the each party will have during the visit.
detailed description of their meaning and possible
impact on the function of the device. Additionally, a The inspection should at least cover the following
standardisation of status and error codes through aspects.
inverters and dataloggers within a same brand should

• Health & Safety check • Subcontracted services
Checks should be aimed at ensuring the It is common practice for large O&M service
safety of field personnel while maintaining the providers to make use of local specialised
uninterrupted operation of the plant. This must companies to carry out activities such as
be considered a minimum requirement and must vegetation control, module cleaning, HV
be performed following the regulations of the substation maintenance and security and
jurisdiction where the plant is located. surveillance. As mentioned previously, these
companies could be the same as those already
• Consistency of plant construction with as-built in charge of such activities during the EPC
project documentation phase. As best practice they should be involved
As a minimum requirement, the inspection team in the handover inspections to advise the main
of the O&M service provider shall check the O&M service provider on their specific area of
entire site. The team should review all the main responsibility.
installed components and materials to verify the
correctness of the as-built project documents. • Collect verbal information from current operator
In the case of a discrepancy, the EPC service Although not a formal activity, the site visit
provider should update the as-built project should be used to confirm information included
documentation. If drones were used to undertake in the O&M reports that are provided as described
construction monitoring and reporting (as per in section 12.1. Transfer of the documentation.
best practice), the documentation generated This should be done by asking the hosting
through this serves as a useful asset to refer to. personnel of the EPC service provider about
details of extraordinary events and major repair/
• Identifying potential issues with contractual substitution interventions that occurred in the
guarantees past, security related aspects (e.g., theft), force
One of the main purposes of the O&M service majeure events (e.g., flooding and drainage
provider inspection is to ensure that the issues) and component related issues (e.g., serial
performance guarantees included in the service defects on modules). Best practice assumes full
contract can be achieved properly. As specified transparency between the EPC service provider
in Chapter 11. Key Performance Indicators and and the new O&M service provider.
Chapter 12. Contractual framework of SolarPower
Europe’s O&M Best Practice Guidelines – India • Visit and access to the warehouse used by the
edition, this may include Availability and Response EPC service provider
Time and, in some cases, PR guarantees. To set up the spare part management strategy as
described in section 12.6. Set up of strategic spare
SolarPower Europe’s O&M Best Practice Guidelines parts warehouse, a visit to the warehouse used
– India edition recommend not to include a PR by the EPC service provider should be part of the
guarantee in the O&M service contract (post-EPC inspection. Moreover, the inventory of material
O&M). However if the PR guarantee is included, as and components will be made available to the
a best practice, the O&M service provider should O&M service provider for its activity.
be invited to participate in the FAC procedure
and to attend the Final Acceptance tests, to have • Additional inspections
the accurate evidence of the plant’s actual PR. The handover by the EPC service provider
Alternatively, if the O&M service provider was generally does not require extremely detailed
not yet appointed or was not invited to attend component inspection if they are new and the
the final acceptance tests, PR needs to be manufacturer guarantee is still valid. However, PV
recalculated during the handover as precisely as modules are the core producing units of a PV plant
possible. Proper calculation of PR is especially and could have hidden problems that do not show
relevant because the O&M service provider will up immediately. As minimum requirement, visual
carry on the risks of a project made by a third- inspections of all the modules (the inspection
party company.

procedures in IEC 61215-1:2016 may be useful increase its productivity. This can be translated
reference) are recommended. Aerial infrared into mid- to long-term plans for retrofitting and
thermography (in compliance with IEC TS 62446- revamping interventions.
3:2017) should be used for this as best practice. For
the O&M service provider and Asset Owner, having
a comprehensive aerial visual and thermographic 12.5. Preliminary Handover Report
inspection report serves as a valuable baseline
and Punch List
against which future performance of the PV
plant can be benchmarked. In addition, further
The handover on-site inspection produces a detailed
inspection techniques such as) should be done on
report that includes a Punch List. This document
a representative sample of modules.
is a technical report that describes all the existing
issues and inconsistencies that were discovered
Retrofitting and revamping/ repowering
and defines a simple pass criterion for each plant
opportunities
component. This report is of great importance
Given that these Guidelines consider the handover
to the handover process because it might trigger
of the O&M activities after FAC, it is unlikely that
important conversations with the Asset Manager or
the plant requires retrofitting or revamping/
the Asset Owner to tailor or amend the O&M contract
repowering. However, it is recommended that site
(e.g., price negotiation). A standard handover report
evaluations should be done with a prospective
should contain the following information:
view on how to extend an asset’s lifetime and
Table 13. Handover report template
A. Site Information (including description of plant access, surroundings, vegetation inside and
outside the fencing, etc.)
B. Document check list (as per Annex E of these guidelines, and Annex C of SolarPower Europe’s
O&M Best Practice Guidelines – India edition)
C. Plant components details: viii. Foundations

i. Modules ix. Mounting structures
ii. Inverter(s) x. Inverter Cabin
iii. String-boxes xi. Transformer cabin
iv. Transformer(s) xii. Video surveillance, access-control
v. Trackers system and perimetral fence
vi. Plant Layout verification xiii. Energy meters
vii. Module orientation and inclination xiv. SCADA and monitoring
For each of the above component the following table shall be included
YES NO
  System corresponding to what is specified in the as-built documentation
  System installed correctly
  The system status is sufficient
Visual inspection notes (for each of the above categories) ___________

D. Information and recommendations for the activities of vegetation control and module washing
E. Preliminary Punch List
For each plant component or plant section requiring an intervention, the following information
should be included in the Punch List:
i. Description of the activity required

ii. Preliminary bill of material
iii. Budget cost
iv. Notes
Any other additional information and recommendations for teams involved in future activities could
be added as an additional note to this report.
12.6. Set up of strategic spare lead to this list being updated following discussion
with manufacturers, amongst others.
parts warehouse
Table 15 – Minimum list of spare parts
Spare parts management is a key activity to ensure a
(non-exhaustive)
high level of availability and minimise downtime and
is typically included in the O&M service provider’s Examples for a minimum list of spare parts
scope of work. The starting point of this process is No. Spare part
the setup of a strategic spare parts warehouse. A
detailed description of this process can be found in 1 Fuses for all equipment (e.g., inverters,
Chapter 9. Spare parts management of SolarPower combiner boxes etc) and fuse kits
Europe’s O&M Best Practice Guidelines – India edition. 2 Modules
Below is a summary of it.
3 Inverter spares (e.g., power stacks, circuit
breakers, contactor, switches, controller board
The EPC service provider should buy spare parts
etc.)
together with all the other components for the
installation of the power plant as this ensures 4 Uninterruptible Power Supply (UPS)
maximum efficiency. Typically, the initial spare parts 5 Voltage terminations (MV)
should last at least for two years from Commercial
6 Power plant controller spares
Operation Date (COD). The volume should be in
line with the requirements of the Asset Owner and 7 SCADA and data communication spares
O&M service provider, as the O&M service provider 8 Transformer and switchgear spares
might recommend additional spares that they
9 Weather station sensors
deem necessary to meet contractual obligations
(e.g., availability guarantees). Generally, it is not 10 Motors and gearboxes for trackers
economically feasible to stock spare parts for every 11 Harnesses and cables
possible failure in the plant. Therefore, the O&M
12 Screws and other supplies and tools
service provider, together with the Asset Owner,
should define the stocking level of specific spare 13 Specified DC connectors (male and female
parts that make economic sense (Cost-Benefit should be from the same manufacturer)
Analysis). For a minimum list of spare parts, see the 14 Structures components
table below. This list is not exhaustive and system
15 Security equipment (e.g., cameras)
requirements and technology developments can

Another aspect to be considered is the warehouse be involved in a dedicated on-site visit where the
location and condition: components leftover from EPC service provider explains and shows all the
construction such as structural elements and H&S procedures. During this, the O&M service
electrical boxes may not be needed regularly and provider’s staff and the EH&S coordinator can
can be stored in a remote warehouse. However, identify additional hazards and implement new
most useful components should be stored on site or procedures if necessary. It is common for O&M
be easily accessible in case of need. service providers or Asset Owners having stricter
EH&S standards than the regional regulations.
During this preliminary stage it is also important For this reason, the inspection before the
to identify equipment requiring particular storage handover is beneficial for all parties
conditions, such as controlled temperature and
humidity, so that the O&M service provider can • O&M manual and procedure: The O&M service
organise the warehouse accordingly. provider’s staff need to be trained on specific site
requirements. Therefore, having training sessions
Once the preliminary list is agreed, it is best practice in which the EPC service provider explains the
to allow the O&M service provider to operate the content of the O&M manuals for major systems
plant for a period of 3 months before defining a final and equipment is recommended
list of spare parts. During this period the O&M service
provider shall evaluate the progress of equipment
degradation and recurrent outages.
12.8. Confirmation of the Punch
List and of KPIs after 3 to 6 months
from start of O&M
12.7. Training of Asset Owner and
O&M service provider (after FAC) The transition period (i.e., the initial period of
the O&M contract during which the O&M service
As already highlighted in paragraph 10.2.8. Training provider becomes familiarised with the site) ends
of Asset Owner and O&M service provider, the EPC after 3 months as a minimum requirement. However,
service provider should arrange an introduction to a 6-month period is recommended as best practice.
the site and a specific training program for the Asset At the end of the transition period the O&M service
Owner and the O&M service provider as part of the provider drafts a final Handover Report. This should
handover process. This is even more important when include the final revision of the Punch List and
handing over to a third-party O&M service provider. compare current plant KPIs with historical ones.
In this case, as best practice, this process should be Other elements or information resulting from the
structured in two parallel streams: observation and the events that occurred during the
transition period can be added, if required.
• EH&S training: The O&M service provider’s staff
and the Asset Owner EH&S coordinator should

13
Key
Performance
Indicators

There are different types of Key Performance 2. Project performance KPIs help all stakeholders to
Indicators (KPIs) relevant to EPC, depending on track project progress, and EPC service providers
project phase and relevant stakeholders. KPIs to optimise their processes
related to EPC can be grouped into three categories:
3. Ex-post KPIs deliver a final assessment
1. Ex-ante KPIs allow the (future) Asset Owner (or concerning a built project. For EPC service
project developer) to decide whether to invest providers these KPIs may also be helpful when
in a project that is being developed and trust a presenting their references to potential new
particular EPC service provider. They also help clients.
lenders to assess projects for financing. These
aspects are important during the transition from The number of criteria to be looked at depends on
the development to the construction phase the value of the project: big projects need to be
and are considered in section 7.1. Selection of examined in more detail.
EPC projects and section 7.2. Selection of an EPC
service provider
Figure 6. Key Performance Indicators in different project phases relevant for EPC
EX - ante Project performance KPI
Pre-qualification for Procurement

System Design
main components • Technical specs /
•S tandardized design
•V endor qualification standards
/ solution
•P roduct qualification •Q A/QC pre / post
•G eneral and site
•D ifferentiation between shipment
specific
•R ooftop, ground •V endors tiering,
•S tandard resources
mounted Credit etc.
and yield assesment
or floating •F ield / service track
• IECRE certification
•C limate record
and rating
•S ite specific • IECRE certification
environment and rating
and rating
Ex - post Testing and Construction

Commissioning •D esign principles
•S eparate PM and •D etailed EPC
T&C responsibilities specs (SOW, BL,
•W ell defined, simplified requirements,
procedures (e.g. PR specs...)
meas) •F ull compliance with
• IECRE certification and codes
rating •P eriodic inspection
and rafting

13.1. Project performance KPIs On the contractual side, Liquidated Damages may
be linked to Deviation in Time – see section 14.5.
During the construction phase, the performance Limitation of liability and Liquidated Damages.
of the project should be tracked closely. There are
available project management standards for this, Since the importance of different milestones may
such as ISO 21500, or publications of associations differ, another KPI should be introduced: the number of
like the Project Management Institute (PMI). In Critical Milestones Missed (CMM). A critical milestone
principle, project management tracks deadlines, is one that must not be missed, because of its
budget, and quality, to achieve planned results. significance to the project. Examples include the date
of receipt of construction permits or of grid connection.
There exist multiple KPIs for project performance. In a normal project CMM should be 0. Additional KPIs
Here we focus on those which track the three essential may include Deviation of Planned Hours of Work.
elements of the ‘project management triangle’: (1)
time, (2) budget, (3) quality. To achieve customer
satisfaction, the planned goals concerning these 13.2.2. Deviation in Budget
elements have to be respected. The sections below
discuss KPIs related to these aspects in more detail. At defined moments in the project, usually at
milestones and after (or even before) purchase of
important components (like modules) or services,
13.2.1. Deviation in Time current accumulated costs Cca(i) should be
compared to costs according to the business plan
Milestones are used in project management to mark Cpa(i). The resulting KPI Deviation in Budget can be
specific points along the project timeline. These defined as:
points may signal anchors such as project start
and end date, or the need for external review, input,
and budget checks. Therefore, one important KPI
concerning time is the Deviation in Time expressed
as percentage of milestones missed:
Where:
ΔB(i) = Deviation in Budget, expressed as a

percentage (%),
Cca(i) = current accumulated costs at the
Where: point of time i,
Cpa(i) = planned accumulated costs according
ΔT(i) = Deviation in Time, expressed as a to the business plan at the point of time i.
percentage (%),
#Ma(i) = Number of Milestones achieved at In this case the value of the KPI depends again on the
the point of time i, choice of the measurement points i, their granularity
#Mp(i) = Number of Milestones that should and distribution over the period of the project.
have been achieved at the point of time i
according to the plan.
13.2.3. Deviation in Quality
Quality KPIs measure the quality of construction as

The value of this KPI increases if the granularity of
well as the construction process and are therefore
milestones becomes finer and milestones are well
quite technical. A general KPI for quality tracking is
distributed over the whole construction phase.
the deviation in quality, which can be defined as:

It is also important to establish feedback loops
to create an atmosphere where continuous
improvement can flourish.
Where: 13.2. Ex-post KPIs

ΔQ(i) = Deviation in Quality, expressed as a Ex-post KPIs are the KPIs that help to evaluate
percentage (%), EPC projects after the construction phase. We
#NC(i) = number of detected non-conformities can distinguish two types of ex-post KPIs (1) KPIs
at the point of time i, concerning overall plant performance, and (2) KPIs
#QC(i) = total number of quality checks at the describing overall project performance from an ex-
point of time i. post perspective.
The value of this KPI depends of course on the 13.3.1. Performance Ratio
definition of quality checks, their number, and
distribution over the project period. Non-conformities The main KPI to evaluate overall plant performance
may include: is the Performance Ratio (PR). PR describes the
efficiency of the energy conversion system of a PV
• Deviations from execution plans plant. When calculating PR, one must bear in mind
• Construction defects that the efficiency of PV modules also depends
• Deviations from norms, standards, grid code, on temperature. For a detailed explanation and
and industrial best practice (the documents formulas, please refer to section 11.2.4. Temperature-
to be considered should be listed in the tender corrected Performance Ratio of SolarPower Europe’s
document) O&M Best Practice Guidelines – India edition.
• Deviations from permits
Tracking certain quality aspects separately, like 13.3.2. Overall project performance
conformity with EH&S protocols, is recommended.
In this case we would count non-conformities in KPIs regarding overall project performance are, in
EH&S and only compare it to the number of all EH&S most cases, identical to the Project performance
checks. KPIs described in section 13.1. Project performance
KPIs, with i being the concluding milestone of the
Since the importance of different quality aspects project.
may differ, it is a best practice to assign a weighting
factor for each conformity check. Other aspects of
project quality may be examined, for example: 13.3.3. Warranty KPIs
• The number of change requests (indicates the Additional ex-post KPIs after FAC measure the
quality of project development and preparation) handling of warranty claims by the EPC service
• KPIs describing the quality of communication provider, for example
between the stakeholders (surveys)
• The completeness of required documents for the • Number of broken components / Total number of
O&M phase (see Annex C of SolarPower Europe’s components
O&M Best Practice Guidelines – India edition) • Number of broken components replaced in
warranty procedure / Total number of broken
This list should be completed according to the components
necessities of the specific project.

14
Contractual
framework

This chapter describes the best practice for a “full- By executing an EPC contract, the Owner of a plant
wrap” EPC contract, under which the EPC service aims to reduce the risks derived from hiring several
provider undertakes to build and deliver the plant service providers in the construction phase. The
in compliance with the agreed time-schedule. The Owner of the plant also strengthens their position
EPC service provider also manages the supply of by creating a single point of liability with the service
the necessary equipment, and all the necessary provider, who will be liable and accountable for the
ancillary works and activities. For other approaches timely and accurate execution of all the construction
such as “split contracts”, see the box on Split EPC works carried out on-site, even when executed by
contracts. sub-contractors (if allowed by the EPC contract).
In this respect, all the relevant legal guarantees
Under a standard EPC contract, the service provider (e.g., time to complete the works, or performance
will typically have to meet a precise deadline to related guarantees) associated with the execution
reach the Commercial Operation Date (COD). of construction works will be issued by a sole
Setting this deadline right is particularly crucial entity, which will take full responsibility for the
when the plant is willing to apply for feed-in tariffs EPC contract. This results in one creditworthiness
(considering that, quite often, this is dependent check rather than several and is especially useful
on reaching COD within a certain date) or has to when a parent company guarantee is chosen over
meet contractual deadlines within the terms of a bank guarantees.
corporate power purchase agreement (which might
result in liquidated damages being payable to the
off-takers of the Power Purchase Agreement).
Box: Split EPC contracts Figure 7 - Full-wrap contract vs split EPC contract
with umbrella agreement
The EPC contract may be construed either as
a full-wrap contract or a split contract. In the
SPV
latter case, the supply and installation of the
components are carried out by different service
providers. In this case, the Asset Owner (SPV)
EPC service
enters into different contracts for the supply provider
and installation of the components. The choice
of executing a full-wrap or a split EPC contract is
up to the Asset Owner, who must evaluate how to Component Sub-Contractor Sub-Contractor
Supplier No.1 No.2
allocate the risks associated with the individual
activities. The Asset Owner’s choice should
comply, as much as possible, with the Lenders’
SPV
requests and interests, who tend to prefer a
single reference point for the construction of
the project. As previously stated, the contract
structures are one of the bankability criteria to
be respected to ensure that the SPV receives the Umbrella
Agreement
necessary funds for covering the construction
and operating costs. Component Component Service
Supplier Installator Supplier

A split contract is mainly chosen when the Asset the other scopes of work by reference to it.
Owner has the necessary in-house resources, Thereby the main contractor shall remain
skills, and personnel to deal with some of the responsible for all the further activities
tasks that would otherwise be outsourced
through a full wrap contract. Outsourcing •
Testing and commissioning (mismatch in
some activities to contractors located in responsibilities): The main contractor must
other jurisdictions and shifting profits to other wrap the completion risk and assume the risk
countries may have advantages in terms of tax of performing all the testing activities and the
optimisation and cost savings. economic burden of the related Liquidated
Damages
To maintain the single point of liability and
efficiently coordinate the different processes, a • Cross-contract claims: It needs to be agreed
third agreement is usually executed between all when contractors should be entitled to claim
service providers to determine how the risks and against the SPV for time extensions or cost
the liabilities must be allocated. This is referred revision if other contractors default
to as an “umbrella agreement” and ensures that
no derogation from the overall turnkey covenant • Caps on liabilities: The SPV should not be
concept occurs, and the bankability criteria are negatively impacted by the sub-division of
respected. Moreover, it should be noted that any liability caps in the splitting process. It
an umbrella agreement is frequently used in may be possible to retain an overall liability
conjunction with parent company guarantees, cap for each contract on the understanding
which ensures the service providers perform all that the different contractors are not jointly
their obligations. and severally liable
To avoid disputes in the case of a split contract • Termination: The termination of one of the
and an umbrella agreement, the following areas contracts should not have an impact on the
should be covered: other agreements and should not lead to
chain resolutions
• Scope of works: It is important that no “gaps”
arise between the scopes of work in each For a turnkey approach a full-wrap contract is the
single agreement, as it is not unusual that preferred option due to the single point of liability
technical inconsistencies may occur between principle. Lenders frequently prefer to have one
different agreements. Such mismatches financially robust party to take full responsibility
may be mitigated by defining the project in respect to all aspects of the construction
specification in the main contract (usually works regarding time, budget, costs, and
the installation agreement) and by defining technical and performance requirements.
14.1. Interface between the and other regulated bodies. In this respect, the
EPC service provider is responsible for maintaining
EPC contract and the regulatory
the vast majority, if not all, of said permits and
framework approvals. In fact, even if they are not responsible for
obtaining the construction permits (zoning permits,
The EPC service provider’s activities are also defined nihil obstat from public authorities, environmental
by the applicable regulatory requirements and impact assessment decree) which are procured by
permits obtained by the developer. developers in the pre-construction phase, the service
The construction of a PV plant requires a myriad provider must make sure that such authorisations
of permits and approvals from public authorities will remain in full force for the entire EPC contract’s

term. The termination of one of them may constitute certain provisions which ensure the bankability
a termination event under the EPC contract. Even of the entire transaction. The presence of these
if the plant’s Basic Design is not included under characteristics in the contractual framework makes
the scope of work of the EPC Contract, the EPC it possible to carry out a risk allocation (both cost
service provider is obliged to faithfully comply with and technical risk allocation) between the EPC
it, as it has been validated by the public authorities service provider(s) and the Asset Owner (or SPV). An
during the authorisation process. As India has appropriate and clear risk allocation, with a single
strictly defined grid requirements, a service provider point of reference, are the fundamental expectations
has limited flexibility for altering the design and of most Lenders. This makes it possible to shift the
specifics of a PV power plant. In addition, the EPC economic risk related to increasing costs directly
service provider is also in charge of applying for onto the Asset Owner. The less well defined the risk
and pursuing all other permits strictly necessary allocation of a project is, the more equity support
for the construction of the project (e.g., filing design will be demanded from the Asset Owner (investor).
amendments or other requests to the competent
authority). Moreover, during the construction phase, For achieving a balance between the Lenders’
the EPC service provider is also responsible for demands, and the Asset Owner’s interests, the key
satisfying any conditions, listed under the permits, clauses regarding timing, cost and quality of the
upon which the entry into the operation of the PV works should be aligned to market standards. In this
plant is conditional. regard, the main drivers – which are the bankable
standards - are:
An example of the interaction between a service
provider and public bodies occurs at the end of the • Single point of liability: The EPC service provider
construction phase, when the PV plant is connected should be the only one responsible for the
to the grid. Here, the EPC service provider is liable to Engineering, Procurement, Construction and
the SPV and the grid operator for: Commissioning of the PV plant. This allows a total
shift of the technical risk from the Asset Owner
• Respecting the requirements detailed under (SPV) towards the EPC service provider who must
the grid rules and concerning the technical face any claims that may arise. This principle
requirements with which the PV plant must is considered a key element as it represents
comply (i.e., voltage, reactive power to be injected the first tool for the lenders in assessing the
into the grid) creditworthiness of the entire project. However,
the Asset Owner (SPV) may enter into different
• Constructing part of the power line. It is not agreements for the procurement and installation
unusual that the construction of part of the of components
infrastructure network (i.e., the segment that
connects the power plant to the primary cabin) • Fixed price provision excluding or limiting any
is outsourced to the EPC service provider. When price adjustment mechanism: This element
this is the case, the service provider must also prevents small technical variations, or small
coordinate activities with the grid operator during alterations to the design leading to a revision
the testing process of the price. It allows Lenders to easily assess
and define all the costs in the banking base
case and the Asset Owner to transfer most of
14.2. Contractual risk allocation the construction cost risk to the EPC service
provider
The EPC contract is one of the most important
elements of a solar project and it has a major impact • Fixed completion date provision which excludes
on project financing and bankability. The EPC any request for time extension.
contract has mandatory principles and contains

• Pre-agreed construction standards and criteria: a pronounced effect on a project. In these cases, a
This requirement assigns the responsibility for flexible approach to allocating responsibility for
achieving minimum standards on parameters like resolving issues should be taken, with the stakeholder
PR and peak power to the EPC service provider. It most able to handle the issue taking the lead.
also makes the EPC Service provider responsible
for ensuring compliance with the relevant grid In case of delays in the execution of the works or
regulatory framework. If a plant fails to meet the technical defects in the operation, the Asset Owner
minimum guaranteed performance, the Asset may have the right to call for a reduction of the price
Owner is usually granted the right to reject and, under certain conditions, liquidated damages,
the plant and to be reimbursed the amounts provided under the contract.
already paid under the EPC contract. However,
performance risk shifting is mitigated through Every provision that could have an impact on
the insertion of a cap on the service provider’s the fixed price of the contract should always be
maximum liability for payment of liquidated carefully drafted and evaluated from a bankability
damages (“performance LDs”) perspective. This is because banks prefer stability in
the price throughout the entire contract. Therefore,
•
Commercial risk shifting (procurement, there should only be a very limited set of cases
inventory, and warranty of components): As where a price adjustment is justifiable for solid
the EPC service provider is the key point of reason or project specifics.
contact for others involved in the construction
phase, they may provide a warranty on quality Events justifying a revision of price are generally
of electromechanical systems, in addition to limited to unforeseeable changes in conditions such
the product warranty granted by the relevant as relevant and applicable changes in legislation,
component producer under national law or natural events which make the execution of
the works particularly burdensome on the service
provider.
14.3. Price and payment
In case of disputes over the payments, parties shall
As for the payment, EPC contracts typically provide firstly meet to try and amicably settle the dispute. If
for a payment schedule running in parallel with a technical issue is the basis for a payment dispute,
construction milestones agreed between the parties. a technical third-party – agreed before in the
contract negotiations – should make a judgement
It is not unusual to have a down-payment of around regarding the technical issue. It should be noted that
10% of the full price, paid upon the execution of the in the price determination, any review mechanism is
contract (or upon satisfaction of specific conditions generally excluded between the parties. Therefore,
required for the contract to take effect). Afterwards, even in the event of an increase in the cost of
payments tend to be tranches of the full price, paid materials, labour, or other unforeseeable factors, the
when relevant milestones have been met. Parties agreed price shall not be subject to any change and
may also agree – in case there is no performance no other arrangement in the payment mechanism
or warranty bond – to postpone the payment of the may be adopted.
last 5% of the price until after completion of the
works, and the expiry of the warranty period (usually
24 months after the PAC is issued). 14.4. Bonds and guarantees
EPC contracts are usually drafted including a fixed A standard EPC contract will provide for the issuance
price clause which binds the parties to the total of the following bonds on the service provider’s side
price agreed thereunder. However, occasionally to secure all its obligations thereunder. In India, EPC
external factors, outside of anyone’s control can have service providers issue bank guarantees:

•
Advance Bank Guarantee: This is generally 14.5. Limitation of liability and
issued upon payment of the down-payment or
Liquidated Damages
as a condition for making such a payment. The
Advance Bank Guarantee will usually cover 10-
Under the EPC contract it is common to set general
15% of the price of the contract, and service
limitations on liability applying to both parties. The
providers are required to submit this to reduce
EPC service provider’s liability should not exceed
the risk of abandonment
100% of the total price agreed under the EPC
contract, with exclusion of any limitation for wilful
• Performance Bond or Bank Guarantee: This is
misconduct, fraud, or gross negligence. The same
generally issued upon release of the Advance
goes for the Asset Owner but with a cap which is
Bank Guarantee or issued directly upon execution
generally lower than the one set for the EPC service
of the EPC contract if no advance payment is
provider.
provided and there is no issuing of an Advance
Bank Guarantee. The Performance Bond/Bank
Liability for indirect damages or losses, and punitive or
Guarantee will usually cover 7.5-10% of the price
consequential damages is always excluded for both
and will remain in full force until the PAC has
parties. Under standard EPC contracts, the service
been issued
provider will also be liable for payment of specific
LDs provided to remedy the damages suffered by
Warranty Bond: This is not a common practice;
the Owner for specific violations of the contract. LDs
however, some developers do require it in certain
should not exceed the general cap on the service
circumstances. This is generally issued upon
provider’s liability, as agreed between the parties.
release of the Performance Bond and issuance of
the PAC. The Warranty Bond will usually cover 5%
Standard Liquidated Damages (LDs) are the
of the price and will remain in full force and effect
following:
until the expiry of the 24-month EPC warranty
period, usually ended by the FAC being issued
•
Delays Liquidated Damages: These are often
calculated as a fixed amount due per each day/
All the guarantees above are typically issued as
week of delay on the deadline set for reaching
irrevocable, first-demand, autonomous guarantees
the COD. The amount should be linked to the
by a bank, or another acceptable financial institution
potential loss of revenue suffered by the Asset
with an appropriate credit ranking. Depending on
Owner
the reliability of the service provider, the Asset
Owner might consider accepting parent company
•
Technical Delay Liquidate Damages: These
guarantees. However, this should be reviewed from a
are generally linked to a failure to meet certain
bankability perspective before any decision is made.
technical thresholds for productivity, power
curve or PR, agreed between the parties, during
• Asset Owner’s parent company guarantee: The
the 24-month warranty period
EPC service provider may ask for the issuance
of a guarantee securing all the Owner’s payment
The LDs reflect the loss of revenue or increase in
obligations throughout the contract. This is
operating costs (or both) resulting from failure to
usually done through the issuance of a parent
achieve the required performance over the life of the
company guarantee. The Asset Owner’s parent
project, or in the agreed deadline.
company guarantee is generally issued upon
execution of the contract and will be in place
It is worth noting that the EPC contract will state a
for the entire duration of the EPC phase, usually
maximum amount payable as liquidated damages
covering around 70% of the price. In India some
for each category (which is usually a percentage of
EPC service providers may request that Asset
the price comprises between 5-15%, that in some
Owners to issue a Letter of Credit for the same
cases may reach 20% of the single category price).
amount
Should this be reached, the Owner should have the

right to terminate the contract and to ask for full To invoke this mechanism the affected party has to
repayment of the accrued liquidated damages. inform the other of the forecasted restart day and
the measures to be adopted to preserve the balance
of obligations originally set forth under the contract.
14.6. Termination, withdrawal, To protect the interests of each party, both may
have the right to withdraw from the contract should
and force majeure
the force majeure last for a period longer than a
determined threshold (generally 45 consecutive
Termination clauses are very sensitive and are
days or 90 days in aggregate), or it jeopardises the
typically negotiated over a long period between the
performance of the relevant obligations.
parties. Generally, the EPC service provider has very
limited contractual termination rights, which are
Force majeure clauses have recently taken on
predominantly linked to failure of payments that are
particular importance following the outbreak of the
not remedied within the relevant cure period.
COVID-19 pandemic due to its material impact on the
execution and performance of contracted services.
If a bank is financing the project, a direct agreement
In response to the pandemic, many governments
will likely be put in place between the bank, the
have adopted highly restrictive measures to reduce
EPC service provider and the Asset Owner. Under
the spread of the contagion, such as lockdowns
the direct agreement, the EPC service provider’s
which led to partial or full freezing of some industrial
termination right will be further limited. This is
activities. National lockdowns made travel for EPC
because the EPC service provider will have to inform
service providers impossible in some countries and
the bank in advance about its intention to terminate
their lack of presence on the plant sites completely
the agreement and the bank will have the right to
halted construction works. Due to the wide range of
cure the issue.
cases, a deeper analysis of a force majeure event’s
impact on an EPC contract must be carried out
At the same time, the Asset Owner will typically
on a case-by-case basis. There are two statutory
have the right to terminate the EPC contract for any
provisions in The Indian Contract Act, 1872 that
relevant failure by the EPC service provider to meet
apply in the absence of a force majeure clause in
its obligations including deadlines, payments of
a contract; Section 32 provides that if a contract
liquidated damages and quality standards.
is contingent on a future event, if that future event
takes place, then the contract becomes void.
In case of termination for violations of the relevant
Section 56 provides that a contract becomes void
obligations, the non-defaulting party will be entitled
if its fulfilment becomes impossible due to a reason
to claim for damages within the limits set forth
outside the control of a promisor. Fortunately, the
under the contract.
energy sector was considered as an essential
service by the Indian government and no extreme
Another case that may lead to the termination of an
measures were directly imposed on the contractors.
EPC contract is the occurrence of a force majeure
However, there were delays in construction timelines
event. This can be a natural event (or any other event)
as contractors’ obligations were prevented or
which is out of any party’s control and has a negative
obstructed by consequential events such as strikes
impact on the fulfilment of both Owner and service
and discontinuation in the supply chain.
provider obligations. The EPC contract generally
provides an exhaustive list of force majeure events.
Another sensitive clause is the right to withdraw or
Each party shall have a duty to mitigate the impacts
terminate an EPC contract. Like termination events,
of force majeure events, to minimise the suspension
withdrawal events are few and well-defined. They
time and restart the performance of services as
generally occur when a force majeure event lasts
quickly as possible. However, if the force majeure
more than the agreed maximum period, or one of the
clause is triggered, the affected party is exempted
parties is subject to insolvency proceedings or other
from any obligation and liability due to its default.

similar procedures (depending on the crisis, these they also retain the risk of loss. After that, the Asset
can range from difficulty in meeting obligations to Owner can only claim any defect and malfunction
the bankruptcy of the service provider or Owner). within the limits of the guarantees provided under
Other withdrawal events may occur if a change the EPC contract.
in the applicable law leads to the introduction
of further compliance requirements, or other
unforeseeable charges, so burdensome that they 14.8. Assignment and set-off
affect the contractual relationship. In these cases,
the affected party must notify the other party in In general, the EPC contract should exclude each
writing, indicating the date of effective withdrawal, party from reassigning the contract without the
and the description of the withdrawal event. This is prior consent of the other party. The rationale for
to give the other party the necessary time to find a this is maintaining the same set up as on the date
reliable replacement. of execution. This principle is based on the Owner’s
interest in having a solid and reliable counterpart
for the construction of the plant. The same key
14.7. Ownership and transfer of risk concept is the rationale applicable to the limitation
of subcontracting. Also, in this case, the contract
The Asset Owner acquires full title on the rights and generally provides for a total exclusion or a maximum
guarantees over the components to be installed threshold of the services to be subcontracted. In
(except the mounting system, panels, and inverters) any case, the EPC service provider shall remain
upon delivery to the site. For the main components fully responsible for the services performed by its
(PV modules, mounting system, transformers and subcontractors.
inverters), the timing of transfer is the issuance of
the PAC, as they must be installed and tested by the Since solar power plants are more and more financed
EPC service provider. Until the PAC issuance date, through non-recourse financing scheme, the EPC
the EPC service provider retains full title on the main service provider cannot set-off its claims and assign
components by virtue of its role as installer and its rights against the Asset Owner. However, the
operator of the plant. Owner is always entitled to assign the receivables
arising from the EPC contract in favour of lenders.
As the EPC service provider is the only responsible
subject for the operation of the plant until the PAC,

References
SolarPower Europe’s Lifecycle Quality Best Practice Guidelines series

available at www.solarpowereurope.org and www.solarbestpractices.com
SolarPower Europe (2019), Operation & Maintenance Best Practice Guidelines Version 4.0
SolarPower Europe (2020), Asset Management Best Practice Guidelines Version 2.0
SolarPower Europe (2020), Engineering, Procurement and Construction Best Practice Guidelines Version 1.0
SolarPower Europe’s best practice checklists – available at www.solarbestpractices.com

Operation & Maintenance best practices checklist
Asset Management best practices checklist
Solar monitoring best practices checklist
Aerial thermography best practices checklist
Additional resources:
BloombergNEF (2020), PV Module Tier 1 List Methodology,
Web: https://data.bloomberglp.com/professional/sites/24/BNEF-PV-Module-Tier-1-List-Methodology.pdf
FIDIC (2017), EPC/Turnkey Contract 2nd Ed (2017 Silver Book),

Web: https://fidic.org/books/epcturnkey-contract-2nd-ed-2017-silver-book
FIDIC (1995), Design-Build and Turnkey 1st Ed (1995 Orange Book),

Web: https://fidic.org/books/design-build-and-turnkey-1st-ed-1995-orange-book
IECRE (2020), IEC System for Certification to Standards Relating to Equipment

for Use in Renewable Energy Applications, Web: https://www.iecre.org/
International Centre for Sustainable Carbon (2021), India Pursues Ambitious Solar Goals Despite
Pandemic’s Impact, 14 July 2021. https://www.sustainable-carbon.org/india-pursues-ambitious-solar-
goals-despite-pandemics-impact/
Meilland, Bernard (1991), Key Success Factors in Services Marketing
SolarPower Europe (2020), Global Market Outlook for Solar Power 2020-2024,
Web: https://www.solarpowereurope.org/global-market-outlook-2020-2024/
World Bank Group (2020), General EHS guidelines references and sources.
Web: https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/
sustainability-at-ifc/policies-standards/ehs-guidelines
International standards
See Annex A.

Annex
A. Overview of applicable international standards

B. Skills matrix

C. Example for Emergency Response Plan
Source: ABO Wind

D. Risk Assessment Matrix and Hierarchy of Controls (template)
Consider the likelihood of a hazardous even occuring

Consider the severity of
injury/illness Very unlikely Unlikely to Possibly could Likely to Very likely to
to happen happen happen happen happen
Catastrophic (e.g. fatal) Moderate Moderate High Critical Critical
Major (e.g. permanent

Low Moderate Moderate High Critical
disability)
Moderate (e.g. hospitalisation/

Low Moderate Moderate Moderate High
short or long term disability)
Minor (e.g. first aid) Very Low Low Moderate Moderate Moderate
Superficial
Very Low Very Low Low Low Moderate
(e.g. no treatment required)
ELIMINATE:
E liminate the hazard

1. If this isn’t reasonably practicable, then... Most effective
Remove it completely from your workplace.
MINIMISE:
ubstitute the hazard

S
(Wholly or partly) with a safer alternative.
Minimise the risk so far as reasonable

I solate the hazard
2. practicable, by taking 1 or more of these
Using physical barriers, time or distance.
actions that is the most appropriate
sing engineering controls

U
Adapt tools or equipment to reduce the risk
Use administrative controls If a risk then remains, you must minimise
3. Develop methods of work, processes and the remaining risk, so far as reasonably
procedures. practicable
Use personal protective equipment (PPE)
If a risk then remains you must minimise
4. This is the last option after you have considered Least effective
the remaining risk by using PPE
all the other options for your workplace.

E. Design documentation
Basic Design – Development Documentation – Level A

ID
Document(s) Title Description/Comment Requirement
Level-#
- Topographical, archaeological and geotechnical (including
seismic risk)
- Hydrology
- Soil conditions inclusive of any contamination for
Minimum
A-1 Site Assessment development
requirement
- Logistics impact Study
- Land cost
- Proof of land ownership or lease
- Restrictions and access information
The study of the long-term solar resource to determine the
Solar Resource Minimum
A-2 long-term average irradiation and temperature at the site using
Analysis requirement
long-term reference sources.
• Studies required for compliance with county, state and
federal requirements are underway or completed; these
studies include but are not limited to environmental survey,
wildlife studies, wetland and water studies, rare plant studies,
Environmental
A-3 cultural/historic resource reports, etc Recommendation
studies
• Identify potential environmental or social risk to the project
• Presence of built structures, residences or communities
on-site or near project site or observations/visual evidence of
recent or current land use
Permits necessary for project construction and operation,
including:
- requirements related to environmental regulations Minimum
A-4 Permitting
- local entitlements requirement
- electrical contracting permits
- building permits
Logistics impact Equipment transportation route and access road and
A-5 Recommendation
Study transmission line route and right of way
Grid connection study verifying:
- the impact of the project connection
- potential structure necessary for its connection in the
Interconnection
A-6 proposed POI Best practice
assessment
- communication system requirement
- power factor requirements
- Current policies

ID
Document(s) Title Description/Comment Requirement
Level-#
Preliminary Project Design providing:
- Installed Capacity: Wp and Wac
Minimum
A-7 Technical Concept - Major Equipment: Modules, Inverters, type of structure,
requirement
Transformers
- Preliminary SLD and Layout
Interconnection Transmission and interconnection agreements, relating also to
A-8 Recommendation
Agreement the direct and ancillary infrastructure
An executable agreement between Project Company and the
energy offtake.
A-9 Offtake agreement Recommendation
If the project is in a regulated market, approval by a public
utilities or other agencies may also be required.
Definition of the project contracts structure:
- EPC contract
- O&M Contract
A-10 Contracts Best practice
- Owner’s engineering Contract
- Procurement agreements
- Lender’s agreement
Financial Model considering all the costs and revenues from
A-11 Financials Best practice
the items of the present list, for the project lifetime.
Preliminary Design – Pre-Construction Documentation – Level B
ID
Document(s) Title Description/Comment Submission Requirement
Level-#
Proposed aggregation and layout of the:
• PV Array sections
• Inverter Stations
• Substation
• Cable routes
Service provider’s Before
• Access roads Minimum
B-1 Specification(s), Construction
• Laydown areas requirement
Site layout Stage
• Meteorological stations
• Site tracks
• Pits
• Construction area
• Permanent and temporary buildings.
As Project documentation the service provider
shall provide a list of:
Before
Service provider’s • Standards relevant to the Works
B-2 Construction Best practice
Specification(s) • Equipment suppliers of Project major
Stage
components
• Sub-contractors
Service provider’s Before
Functional description and conceptual design Minimum
B-3 Specification(s), Construction
specification requirement
Amenities Building Stage

ID
Level-#
Service provider’s
Specification(s), Before
B-4 Control Building, Construction
including MV Stage
Switch room
The service provider shall supply a completed
Grid Connection Before
performance standard template stating the
B-5 Performance Construction Recommendation
proposed level of compliance to each access
Standard Template Stage
standard in accordance with utility standards.
• Design Life for PV Modules, Inverters,
PV Mounting Structures and other major Before
B-6 Design Life components. Construction Best practice
• Design Life of components that do not meet Stage
the requirements of Design Life.
Provide method statements and procedures
Loss of grid power - Before
to achieve the aim of ensuring the Works are Minimum
B-7 Method statements Construction
able to withstand periods without grid electrical requirement
and procedures Stage
power.
Training plan as required to support the off- Before
Training package
B-8 site and in-field training of the Employer’s Construction Best practice
and programme
personnel Stage
The service provider shall submit the following
documents.
• Datasheets
Before
PV Module • Type test certificates to Applicable Standards Minimum
B-9 Construction
specifications and test reports requirement
Stage
• Accelerated test certificates
• Proposed module bill of material (if available)
• Warranty terms
documents.
• Datasheet Before
Inverter Minimum
B-10 • Type test certificates to Applicable Standards Construction
specifications requirement
and test reports Stage
• Test certificates
• Warranty terms

ID
Level-#
documents.
• Datasheet
• The latest installation figures for the proposed
Before
PV Module Trackers along with an indication Minimum
B-11 Mounting Structure Construction
of the operational track record requirement
Stage
• Type test certificates to Applicable Standards
and test reports
• Test certificates
• Warranty terms
Preliminary design information including Before
Mounting Structure Minimum
B-12 footing design, construct; general arrangement Construction
– Preliminary study requirement
drawings Stage
Civil Works, Where not covered by the site layout an Before
Minimum
B-13 Specifications outline of proposed BOP Civil Works, including Construction
requirement
Overview specifications Stage
Before
B-14 Amenities Building Construction
Stage
Other Parts documents.
(e.g., transformer, • Datasheet Before
Minimum
B-15 switchgear, cables, • Track records Construction
requirement
DC Combiner Box, • Type test certificates to Applicable Standards Stage
Met Station, etc.) and test reports
• Warranty terms
Electrical System,
Outline of proposed electrical systems up to
Specifications Before
and including the Point of Connection, including Minimum
B-16 (as part of the Construction
all single line diagrams, cable routes, cable requirement
service provider’s Stage
specifications and protections.
Specification)
Electrical System,
Before
HV/MV Transformer Minimum
B-17 Proposed substation transformer specification. Construction
Specifications (if requirement
Stage
applicable)
SCADA & Before
Information on the SCADA & communications Minimum
B-18 communications Construction
system, including specifications and drawings requirement
system Stage
Information on the Met Station installations Before
Minimum
B-19 Met Station including number of Met Stations, location and Construction
requirement
instrumentation specifications. Stage

ID
Level-#
Proposed testing plan for Section and/or
Practical Completion including but not limited
to:
• List of the Commissioning Tests (Civil,
Mechanical, Electrical and Communication) Before
Commissioning and
B-20 • Acceptance Criteria for each Commissioning Construction Best practice
Testing, Plan
Tests Stage
• Checklists and procedures for each
Commissioning Tests
• Performance Tests methodology
• SCADA Commissioning Tests
Before
Recommended List of components and consumables that do
B-21 Construction Recommendation
spares not satisfy the Design Life for the Works.
Stage
List of all the tools, vehicles or equipment Before
Special tools and
B-22 required for the safe and effective operation Construction Recommendation
vehicles
and maintenance of the Plant Stage
Project Proposed Project Plan including list of key Before
B-23 Management, personnel with CVs and project organisation Construction Recommendation
Project Plan diagram Stage
Project Before
Proposed Schedule Including milestone dates Minimum
B-24 Management, Construction
for completion requirement
Project Schedule Stage
Before
B-25 Sub-contractors A list of all sub-contractors Construction Best practice
Stage
Before
Work Method Draft work method statement for the
B-26 Construction Best practice
Statement construction of the Solar Farm
Stage
Quality Description of the service provider’s quality Before
B-27 Management, management system and associated Construction Recommendation
System Description certificates Stage
Proposed Quality Management Plans applicable
to:
• Design of the Works
• Manufacture of the Works Before
Quality
B-28 • Installation and erection of the Works Construction Best practice
Management, Plans
• Testing, commissioning, and Practical Stage
Completion of the Works
Shall include, where appropriate, references for
FATs of major components.

ID
Level-#
• EH&S Policy (dated and signed)
• Description of the service provider’s EH&S Before
EH&S Management
B-29 System Construction Recommendation
system
• Health, Safety, and Environment management Stage
plans
Before
Proposal defining the contract drawings and Minimum
B-30 Document Register Construction
documents in the form of a Document Register requirement
Stage
Before
Energy Generation Report summarising loss parameters and Minimum
B-31 Construction
Summary energy estimates for the Solar Farm requirement
Stage
The service provider will provide their PVsyst
Before
model file (including all supporting component, Minimum
B-32 PVsyst model Construction
horizon and other necessary files) to support requirement
Stage
their energy production figure.
Execution Design – Construction Documentation – Level C
ID
Level-#
The service provider shall provide,

Grid Connection Duration of the Minimum
C-1 and update as required, data and
Data and Settings Contract requirement
settings as required by the utility
All required information to assist the
Grid Connection Duration of the Minimum
C-2 Principal in its application for Grid
Documentation Contract requirement
Connection
In time required
The service provider shall supply a
to allow Employer
completed performance standard
Grid Connection review in accordance
template stating the proposed Minimum
C-3 Performance with the EPC Contract
level of compliance to each access requirement
Standard Template but no less than 4
standard in accordance with the
weeks prior to start of
utility
relevant work.
By the time required

to allow the Employer
review in accordance
Work Method Minimum
C-4 For all parts of the Works with the EPC Contract
Statements requirement
but no less than 8 weeks
prior to start of relevant
work.

ID
Level-#
Full specification of the PV Module,
Inverters, Transformers, MV and HV
Detailed 2 months after contract Minimum
C-5 Switchgear, SCADA and Met Stations
Specifications award requirement
including specifications of all main
components
The service provider shall submit

PV Design Report describing
PV Array Design 2 months after contract
C-6 the service provider’s approach in Best practice
Report award
addressing Project design risks,
such as PID, shading and others.
PV Array, General Includes the general arrangement
4 weeks after contract Minimum
C-7 Arrangement drawings of all elements and
award requirement
Drawings structures and buildings.
• Design calculations
• Demonstration of suitability of
all structural components in
PV Mounting
extreme wind conditions and over
Structures, Civil / 2 months after contract Minimum
C-8 the design life
Structural Design award requirement
• Detailed foundation
Report
specifications and design
• Borehole logs and geotechnical
test results
In time required to
PV Mounting 3 Party and manufacturer Report
rd
allow Employer review
Structure, 3rd party confirming the suitability of the in accordance with the Minimum
C-9
structural design PV Mounting Structure for the site EPC Contract but no less requirement
report conditions. than 8 weeks prior to
start of relevant work.
After contract award

Civil Works, Comprehensive geotechnical
but prior to design and Minimum
C-10 Geotechnical investigation, including all different
construction of the requirement
investigation report sections of the project.
related items of Works
After contract award

Civil Works, To confirm the design for flood
but prior to design and Minimum
C-11 Hydrology and flood requirements for a 1 in 100-year
construction of the requirement
study flooding event.
related items of Works
The design report shall contain, as

Civil Works, Civil / a minimum, all method statements,
2 months after contract Minimum
C-12 Structural Design design inputs, design calculations,
award requirement
Report specifications, design drawings, cross
sections, layouts and studies
Civil Works, Method 2 months after Contract Minimum
C-13 Method statement for all Civil Works.
statement award requirement

ID
Level-#
The service provider shall provide

Civil Works,
evidence from field, production
Concrete and Grout 2 months after Minimum
C-14 or trial tests to justify the design
Design Supporting contract award requirement
of the concrete or grout mix
Information
proposed
In time required to
allow Employer review
Civil Works, Civil/ All civil/structural works shall be in accordance with
Minimum
C-15 structural designs – independently checked and approved the EPC Contract but
requirement
3rd party approval by a certified structural engineer no less than 8 weeks
prior to start of relevant
installation work.
Electrical design report(s) with detailed

calculations indicating method,
Electrical Works, assumptions and outcomes of design
Electrical power and dimensioning of all elements in
2 months after contract Minimum
C-16 system studies and the Electrical System, having regard to
award requirement
design calculations the potential output of the PV Module,
reports Inverter, the Employer’s reliability and
availability requirements and good
electricity industry practice.
Design of proposed electrical systems
Electrical Works,
AC design, DC design and Earthing 2 months after contract Minimum
C-17 Electrical system
drawings. award requirement
design report
Electrical Works,
Cable Route Layout and associated
Cable route layout 2 months after Minimum
C-18 design drawings
and associated contract award requirement
design drawings
Electrical
Full specification and design drawings 4 weeks before
Works, Detailed Minimum
C-19 of all elements of the Electrical System commencement of the
specifications and requirement
relevant works
design drawings
Electrical Works,
Final optimisation of power cable 2 months after contract Minimum
C-20 Electrical System
conductor size. award requirement
optimisation report
Detailed assessment of lightning risk

Electrical Works, to personnel and Works in accordance
Lightning with Applicable Standards. 8 weeks before
Minimum
C-21 protection Diagrams (plan and elevation) showing commencement of the
requirement
study and risk lightning mast locations (if applicable) relevant works
assessment and lightning protection zones using
rolling sphere method.

ID
Level-#
Electrical Works, Written endorsement by the Employer
Minimum
C-22 Protection settings and/or the utility for the protection Prior to energisation
requirement
signoff system
Electrical Safety Certificates for all
Electrical Works, Minimum
C-23 electrical works to Applicable Laws, Prior to energisation
Electrical certification requirement
Regulations and Standards
Electrical Works, Method statement for all Electrical 2 months after Contract Minimum
C-24
Method statement Works. award requirement
Electrical Works, 2 months prior to
Minimum
C-25 Earthing verification Earthing verification report energisation of the
requirement
report Works.
Electrical Works,
Reactive Plant
Voltage regulation and reactive power 2 months after Contract Minimum
C-26 voltage regulation
flow control design report award requirement
& reactive power
control design report
Single line diagram of the Solar Farm

Electrical Works,
using Standard electrical symbols, in
Electrical / Control Minimum
C-27 sufficient detail to show all protective During Contract duration
Drawings & requirement
devices, overvoltage protection,
Documentation
isolation and earthing facilities
Electrical Works,
Design of proposed electrical MV/HV
MV/HV Works 6 months after Contract Minimum
C-28 systems
Electrical System award requirement
Design Report
Details of inverter station interfacing,
SCADA, Design Solar Farm and Substation and XX kV 6 months after Contract Minimum
C-29
report equipment with design inputs, design award requirement
criteria, design outputs
Documentary evidence that the SCADA
SCADA, Warranty system is sufficient for recording and
6 months after contract
C-30 calculation method analysis of the data for the warranty Best practice
award
& results tests
Detailed functional specification and

design drawings of all elements of the
SCADA, Detailed
SCADA & Communications System
function 6 months after contract Minimum
C-31 Documentation including manuals,
specifications and award requirement
quality control, installation,
design drawings
commissioning and testing
procedures.

ID
Level-#
Specification and drawings for
meteorological masts including but not
limited to:
2 months prior to
Met Station, Design • Instrumentation specifications and Minimum
C-32 commencement of
report calibrations requirement
relevant works
• General layout
• UPS
• Power supply and SCADA connection
6 weeks before
Method statement An installation report for each met commencement of Minimum
C-33
– Delivery to Site station shipping or transport requirement
of any items
For Inverter Stations and other critical 1 month prior to site
C-34 Transport route Best practice
equipment and oversize loads mobilisation
A report that details the proposed

Pre-delivery condition
access roads to be used together with 1 month prior to site
C-35 survey of the Recommendation
any off-Site road improvement required mobilisation
transport route
and conditions of transportation.
30 business days prior
Inspection and Test Condition survey of the transport route
C-36 to relevant inspection/ Recommendation
Plan (ITPs) to the Site Access Point.
test.
Relevant ITPs for all installation,

Minimum
C-37 Type test certificates testing and commissioning activities of Prior to delivery to Site
requirement
all parts of the Works.
Factory acceptance Type test certificates for all Plants or
C-38 2 weeks prior to first FAT Recommendation
test schedule Equipment
8 weeks before
Factory acceptance
C-39 Test schedule for all major equipment commencement of the Recommendation
test results
relevant Site works
Factory Acceptance
Copies of test certificates for all
Tests, Certificates
C-40 routine factory tests applied to all Prior to delivery to Site Best practice
and Reports,
major items included in the Works
Electrical Works
Method statement FAT certificates to be provided by 1 month after

C-41 Best practice
– Commissioning the service provider contract award
Method Statement describing pre-

commissioning and commissioning
Method statement – tests on all items in preparation for 2 months after Contract Minimum
C-42
Capacity test completion of individual Section award requirement
of Works and to reach Practical
Completion.

ID
Level-#
Method Statement describing

Method statement the service provider’s proposal 2 months after Minimum
C-43
– Performance test to perform Capacity Test and Contract award requirement
Availability Test
Method Statement describing

Recommended 2 months after Minimum
C-44 the service provider’s proposal to
spares contract award requirement
perform Performance Test
Updated list of components and
consumables that do not satisfy 2 months after contract
C-45 Special tools listing Best practice
the Design Life for Works including award
additional information.
Project Management, 2 months after contract Minimum
C-46 Project Management, Project Plan
Project Plan award requirement
Project Management, Project Plan including list of
2 months after contract
C-47 Project Schedule (or key personnel, CVs, and project Recommendation
award
Programme) organisation diagram
Landowner works Prior to commencing Minimum
C-48 Updated and final Project Schedule
schedule Works on the property requirement
Quality Report outlining the works for each
2 months after
C-49 Management, specific landowner’s property Best practice
contract award
System Description
Updated and final Project specific
Quality Management, 2 months after contract
C-50 quality management system for the Recommendation
Plans award
Works
Quality Management Plans applicable
to:
• Design of the Works
Quality Submitted to the
• Manufacture of the Works
Management, Employer for comment Minimum
C-51 • Transportation and Storage of the
Plans, 8 weeks prior to relevant requirement
Works
Documentation site works.
• Installation and erection of the Works
• Testing, Commissioning, and
Practical Completion of the Works

ID
Level-#
Quality Management Plans updated to
include for all Works:
• Factory Acceptance Testing and
monitoring
• Detailed Construction/Installation
EH&S Management procedures and check sheets Minimum
C-52 2 months before NTP
Plan • Detailed Pre-Commissioning requirement
procedures and check sheets
• Detailed Commissioning procedures
and check sheets
• Detailed Performance Test
procedures and check sheets
• ESMS Plan
• Forced and Child Labour,
non-discrimination and equal
opportunities, worker rights, worker
organisations, worker grievance
mechanism, worker code of conduct
• Worker Management Plan / Worker
EH&S, Management
C-53 Accommodation strategy 1 month before NTP Best practice
System
• Security Management Plan
• Traffic Management Plan
• Waste Management Plan
• ESMS Legal Register
• EH&S Organisational chart
• Emergency Preparedness and
Response Plan
Updated and final full Health, Safety,
Environment and Social Management
EH&S, Risk System (including all the procedures, 4 weeks after each
C-54 Assessments and templates of the reports and checklists respective risk Best practice
Register to be filled in during the construction assessment workshop.
period) in compliance with the IFC
requirements
By the time required to
For Construction
Documentation shall be submitted in allow Principal review
documentation and
document package in accordance with in accordance with the Minimum
C-58 drawings,
major sections of the Works for review EPC Contract but no less requirement
100% or Final
by the Principal. than two weeks prior to
Detailed Design
start of relevant work.

ID
Level-#
For Construction documentation and
drawings produced to provide all
required information to construct the
Works.
1 month after Minimum
C-60 Document Register
contract award requirement
Documentation shall include updates
to rectify any issues not otherwise
resolved in the Final Detailed Design
documentation.
As-Built Design– Level D
ID Document(s)
Description/Comment Submission Requirement
Level-# Title
Grid Connection Update to all required grid connection Prior to Practical Minimum
D-1
Documentation documentation Completion requirement
All licenses, software keys, hardware keys
Software Prior to Practical Minimum
D-2 (dongles) and the like for all software
Licenses Completion requirement
included in the Works.
Training programme required to support the
Training
off-site and in-field training of the Principal‘s Prior to Practical
D-3 Package and Best practice
personnel including hard and electronic Completion
Programme
copies of all training material.
Final - Fully indexed and linked - comprising
overview of the Solar Farm, specifications Prior to Practical
Minimum
D-4 O & M Manuals and all details for the safe and effective use, Completion
requirement
operation and maintenance of the complete
Solar Farm.
Safety Report The service provider shall update and submit 4 weeks Prior
D-5 (or Safety in the final Safety Report for all Permanent to Practical Best practice
Design) Works Completion
3rd Party Civil/Structural Chartered
Engineer’s Certificate confirming the
Civil Works, suitability of the PV Array Mounting
4 weeks Prior
3rd party civil/ Structure and all Civil Works, that they are in
to Practical
D-6 structural accordance with the As-built drawings and Best practice
Completion of the
design documentations and as required under the
relevant Section
certificate Applicable Laws, Regulations and Standards
in respect of the entire Solar Farm and site
building electrical works.
Electrical Updates to Electrical Design Report
4 weeks Prior
Works, Updated (submitted under Level B documents),
D-7 to Practical Best practice
Electrical following any design changes during
Completion
Design Report construction

ID Document(s)
Level-# Title
All Electrical Certificates of Compliance
Electrical (ECoCs) are issued for all electrical works
4 weeks Prior
Works, required under the Applicable Laws,
D-8 to Practical Recommendation
Certificates of Regulations and Applicable Standards in
Completion
Compliance respect of the entire Solar Farm and site
building electrical works.
4 weeks Prior
Complete I/O database including description Minimum
D-9 SCADA to Practical
of each I/O. requirement
Completion
Copies of calibration sheets for all sensors/ 4 weeks Prior
SCADA, Minimum
D-10 transducers as appropriate in accordance to Practical
Instrumentation requirement
with the appropriate calibration standards. Completion
4 weeks Prior
Met Station, Each installed Met Station shall have a
to Practical Minimum
D-11 Maintenance maintenance log detailing all work carried out
Completion of the requirement
log(s) on the instruments.
relevant Section
Post Delivery 1 month after the
Condition survey of the transport route to the
Condition last major load or
D-12 Site Access Point post-delivery of all major Recommendation
Survey of the component has
loads & equipment.
Transport Route been delivered
Prior to Practical
All completed Acceptance Certificates for a
Acceptance Completion of the
D-13 Section of Works prior to Section milestone Best practice
Certificates Section
Practical Completion

ID Document(s)
Level-# Title
Completed installation and commissioning
checklists, including commissioning test
results, for the entire Electrical Works. This
shall include all the specifications below as
well as any regional requirement or other
evidently relevant tests.
- Low voltage DC circuit functional tests
according to IEC 62446 which shall
comprise as minimum the following:
•C ontinuity of protective earthing and/or
equipotential bonding conductors
•P olarity test
•S tring open circuit voltage test
•S tring short circuit current test
• F unctional tests
• Insulation resistance DC circuit test
- Inverter Commissioning Certificate,
issued and signed by the manufacturer
following the protocol described at the
manufacturer’s installation manual. 4 weeks Prior
Final Practical
Commissioning protocols. Cold and hot to Practical Minimum
D-14 Completion test
commissioning tests Completion of the requirement
reports
- Transformers Commissioning Certificate, relevant Section
issued and signed by the manufacturer
following the protocol described at the
manufacturer’s installation manual.
Commissioning protocols
- Insulation Resistance test report (i.e.,
cabling pressure test) of High Voltage
circuits
Commissioning certificate of the grid
operator
- Commissioning document issued by the
EPC service provider related to all HV
equipment installed at the plant. Any related
commissioning procedure, testing protocols
and testing results should be included
- Commissioning document issued by the
EPC service provider related to all LV
equipment installed at the plant. Any related
commissioning procedure, testing protocols
and testing results should be included.
Upon satisfactory completion or upon failure Not later than one
Capacity and
of the Capacity and Availability Test, as the month after the Minimum
D-15 Availability test
case may be, the Employer will issue an conclusion of the requirement
report
Acceptance Test Certificate to that effect. Capacity Test

ID Document(s)
Level-# Title
Not later than
Upon satisfactory completion or upon failure
one month after
Performance of the Performance Test, the Employer will Minimum
D-16 the conclusion of
test report issue an Acceptance Test Certificate to that requirement
each Performance
effect.
Test
4 weeks Prior
Installation and The results of all inspections, checks
to Practical Minimum
D-17 Commissioning, and tests carried out, together with any
Completion of the requirement
Reports subsequent analysis.
relevant Section
EH&S reporting
Evidence of compliance with the EH&S 2 months
documents,
D-18 Management Systems. post Practical Best practice
Risk Register,
Final risk register. Completion
Final
As Built 4 weeks Prior
As-built drawings of the site showing the
Drawings and to Practical Minimum
D-19 exact location of all project elements and
Documentation, Completion of the requirement
structures.
Site layout relevant Section
The service provider shall submit for the
Employer’s review:
• All as-built diagrams
• Protection schematics
• Control schematics
As-built • UPS schematic 4 weeks Prior
Drawings and • Cable schedules (MV and LV) to Practical Minimum
D-20
Documentation, • And General Arrangement drawings Completion of the requirement
Electrical Works including: relevant Section
• As-built MV/HV Substation drawings
• As-Built MV Switch room drawings
• SCADA, battery / UPS drawings
• As-built transformer including LV cabling
between Inverters and PCS transformers
Final as-built drawings for all project
As-built 4 weeks Prior
elements and structures, including
Drawings and to Practical Minimum
D-21 • Site drainage
Documentation, Completion of the requirement
• Site landscaping
Civil Works relevant Section
• Site reinstatement
Comprehensive and complete SCADA
drawings.
As-built
Drawings and 4 weeks Prior
The SCADA system shall be supplied with Minimum
D-22 Documentation, to Practical
three sets of comprehensive, complete and requirement
SCADA system Completion
up-to-date documentation packages relevant
to all the hardware and software supplied,
including manuals and diagrams.

ID Document(s)
Level-# Title
Copies of calibration sheets and data
4 weeks Prior
logger settings for all sensors/transducers Minimum
D-23 Instrumentation to Practical
as appropriate in accordance with the requirement
Completion
appropriate calibration standards.
Organisaiton chart of the project including
Organisation
D-24 EPC service provider, subcontractors, DNO,
Chart
ICP, CDMc

EU-India Clean Energy and Climate Partnership (CECP)
https://www.cecp-eu.in/


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Engineering,

Engineering, Procurement and Construction

Walburga Hemetsberger Subrahmanyam Pulipaka

Engineering, Procurement and Construction

Published: April 2022

Engineering, Procurement and Construction

Engineering, Procurement and Construction

3. Lifecycle of EPC Quality Management���������20 9. Procurement����������������������������������������������52

Engineering, Procurement and Construction

13. Key Performance Indicators������������������������99

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

EPC refers to companies that deal with the Engineering, Procurement,

An official acknowledgement that the minimum Performance Ratio (PR), guaranteed by

A policy mechanism, designed to accelerate investment in renewable energy technologies,

An application to an insurer, from a customer, for reimbursement based on their insurance

Engineering, Procurement and Construction

• Pole mounts driven directly into the ground of embedded in concrete

A preliminary acknowledgement that the minimum Performance Ratio (PR), guaranteed by

Engineering, Procurement and Construction

Quality is a perceptual, conditional, and somewhat subjective attribute and may be

A data acquisition system that connects various hardware and software

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Figure 1. Risk Management strategy chart

Risk management implementation, business integration and communication strategies

Early warning system

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

• Ensure compliance with CEA-Measures Relating • Environmental impact assessment (EIA)

Engineering, Procurement and Construction

Engineering, Procurement and Construction

1. Medical problems 6. Fire

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Site Briefing/Toolbox Meeting Minutes

Site Inspection Checklist • Catastrophic = multiple fatalities and extreme

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

The EPC service provider’s personnel typically have

Engineering, Procurement and Construction

Engineering, Procurement and Construction

6.4. Working environment Establishing development plans for employees and

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Engineering, Procurement and Construction

Apart from the financial stability of the EPC service

3. Lifecycle of EPC Quality Management��20 9. Procurement��52

13. Key Performance Indicators��99

• Ensure compliance with CEA-Measures Relating • Environmental impact assessment (EIA)

Site Inspection Checklist • Catastrophic = multiple fatalities and extreme

•S ite identification •G eotechnical •F inal •S

• PV modules – manufacturer, model, • The drainage system should be designed to