Alberta Solar Review 2022

Page 8

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


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