Turnkey container energy storage EPC contract price in New Zealand

Should a project be delivered under an EPC or turnkey contract?

One of the main drivers for and major advantages delivering a project under an EPC or turnkey contract, as opposed to adopting a multi-contract approach, is that project developers and project finance lenders have a single point of responsibility.

Are EPC contracts available in New Zealand?

EPC contracts are commonly used overseas (including in Australia). However, until recently, they have not been as frequently or commonly used in New Zealand, and there is currently no New Zealand standard form EPC contract available for use by renewable energy developers.

Can a bespoke EPC contract transfer risk to a domestic subcontractor?

The risk profile agreed under an EPC contract is generally not appropriate for passing down to the domestic subcontractor market. This is in large part because New Zealand subcontractors do not have the balance sheet to support the transfer of risk that is common in bespoke EPC contracts.

How many battery containers will totalenergies supply?

The TotalEnergies subsidiary will supply 70 of its Intensium Shift+ battery containers as part of a plan to transform the coal- and gas-fired power site to renewables.

What is an EPC contract?

Similar to “Principal’s Requirements” commonly found in a D&C contract, an EPC contract will generally include “Employer’s Requirements”. This is often a limited output specification, which sets the parameters and objectives that the contractor must meet.

Should EPC contractors undertake early works?

There is an emerging trend for principals to engage the intended EPC contractor to undertake early works either before entering the EPC contract or before notice to proceed with the entire project is given. Usually, this is to enable international contractors to undertake geotechnical investigations and better price the ground risk.