Control of Wind Farm Performance Risk in the EPC Contract

摘要

To address the risk of project under-performance, technical characteristics and qualities of the wind plant are defined as part of the EPC contract. Guarantees are put in place to set the minimum level of performance acceptable to the principal. Tests are then typically used to verify whether the agreed project characteristics are met. In case of under-performance Liquidated Damages represent one means of compensation. This paper discusses which types of Guarantees are typically used, how tests can be defined to identify under-performance in a practical way and how Liquidated Damages can appropriately compensate for poor technical plant performance.