The project proponent also enters into an agreement between the facilities and an experienced contractor, under which the contractor plans and builds other facilities needed for the project, such as turbine foundations, roads, crane cushions, sleeping surfaces, collection systems, substations, transmission lines and maintenance equipment. The contractor will also receive, inspect, unload and install turbine equipment. Relevant agreements must ensure that the volume of work and hourly interfaces are carefully coordinated between the turbine supplier and the supplier. The agreement must avoid disruptions, duplication or omissions between the turbine supplier`s work areas and the facility builder`s balance, and ensure that the agreements result in a fully constructed, integrated and operational project. Depending on the complexity of the project, the proponent can enter into an interface agreement with the turbine supplier and the facility builder`s balance sheet in order to carefully coordinate the work of the various parties. Close coordination between the turbine supplier and the manufacturer`s balance reduces the likelihood of construction and commissioning delays. F. Some tax benefits. The profitability of a wind project often depends on obtaining certain federal and national benefits for renewable energy projects.

Production tax credits (“TPPs”) and investment tax credits are currently only available for projects in which the taxpayer began construction before January 1, 2019. The amount of TPC has fallen by 20% in 2017, 40% in 2018 and 60% in 2019. Accelerated depreciation (MACRS) is also part of the current federal wind development support and promotion regime. In addition to federal incentives receiving tax assistance, many federal states offer tax incentives for wind projects. The proponent of the project must be aware of the specific requirements it must meet in order to obtain these benefits when negotiating the supply of turbines and the balance of installation contracts. A broader discussion of these issues is presented in Chapter 10 of this book. It is often unclear what contract breaches will be corrected. In the operating phase, the equivalent is often the OEM`s SMA contract manager, but rehabilitation is often regulated by the TSA.

Understanding the links between the SMA and TSA contracts is as important as an appreciation of the different climbing options offered by each contract.