Developing the
solar project
EPC Contracts in the Alberta Solar Sector By Jason Roth, Head of Capital Projects Industry Team; Geoffrey Stenger, Partner; Victoria Tulk, Associate; Bennett Jones LLP, Calgary
Jason Roth
Geoffrey Stenger
Victoria Tulk
Contracting strategies for solar
mixture of bespoke owner contracts,
Selecting the right contractor.
projects in Alberta are anything
bespoke contractor contracts and, for
A unique element of a solar EPC
but one-size-fits-all. This is hardly
projects of a smaller size, some use
contract is that the value of the
a surprise as every project has
of the CCDC-14 design build contract
long-lead items is often much greater
different priorities and concerns
with supplemental conditions
than the construction or installation
to focus on, including project
created for the solar industry. Most
costs. Developers or purchasers need
importantly, whichever form of
to carefully focus on hiring the right
contract of is selected, the form
EPC contractor for the project. It is
should adequately reflect the risk-
extremely important that a contractor
allocation needs of the project.
has supply chain expertise and the
financing requirements, schedule, panel sourcing and environmental attributes. Many solar projects are currently being delivered under an “owner-controlled program,” where the owner enters into all engineering,
KEY CONSIDERATIONS FOR SOLAR
procurement and construction (EPC)
EPC CONTRACTS
contracts separately rather than one
ability to source the long-lead items into Canada at a reliable price. The EPC contractor must be financially
The following is by no means
capable of performing its obligations
exhaustive but are issues that
under the contract or have sufficient
Where an EPC contract is being used,
commonly require the attention of the
financial security available to the
there is no one agreed form. There is a
solar project developer.
owner in the event of a breach.
overarching EPC contract.
8 ALBERTA SOLAR REVIEW • 2022/23