the others, develop a realistic project plan, and get sign-off on the plan by all stakeholders. Notice that this strategy
consists solely of tasks pertaining to pre-construction! That
is not to ignore the importance of the construction, inspection, and commissioning phases, but my premise is that
the job is won or lost before groundbreaking.
The key is the second step, which is to ensure that each
stakeholder is motivated in a manner that ensures collab-
oration. A simple strategy, but a challenge to accomplish:
one must structure contracts so that each stakeholder has
some “skin in the game.” Depending upon the legal structure of the endeav-
or, it could be an ownership stake in the corporation, a limited partnership,
or a share of project revenue. Whatever the methodology, it is critical that
all stakeholders have a vested interest in the success of the project. This will
minimize conficts and delays, and ensure rapid resolution of the unforeseen
challenges which inevitably will arise.
Alistair Marsden, Dulas
Stop focusing on “driving down cost” and look at increasing value. If cost
is the main factor the supply chain will either cut corners to hit that cost
point, or use too many allowances to hide cost. Both of which mean your
project will come in over budget. Focus instead on value and highest ROI,
not cheapest option.
Niranjan Kumar, KT
The reason behind the high cost is that, in order to build a new renewable
power system (let’s take wind energy as an example), all the necessary parts
such as the blades, generators are not sold as a complete set by a single company. They’re sold separately. Only very few companies in the world offer
complete kits. This scenario contributes to more building expense and supply
chain constraints. This usually tends to frustrate the government too. Solving
this issue would help in reducing the costs to a great extent.
Lawrence Coomber, Flowtech
The main culprit in RE projects budget blowouts is “labour intensive technologies” installation and deployment costs. This has been increasingly apparent
for years now as we have witnessed PV prices steadily declining and labour
costs for PV installations steadily rising. This poses some very real challenges
for energy technology design engineers to consider. à