12 pv o&m cost-resource optimization

O&M COST/RECOURCE OPTIMIZATION

THE GLOBAL ON-DEMAND NETWORK OFLOCAL, INDEPENDENT, AND CERTIFIEDRENEWABLE ENERGY PROFESSIONALS.

PRESENTED BY

O&M COST/RECOURCE OPTIMIZATION

A: O&M AS A COST CENTER.

B: O&M AS A PROFIT CENTER.

C: HOW DO WE REDUCE O&M COSTS ?

O&M CHALLENGES

1/ Regarding the EPC inheriting the O&M scope, how long and secure is the budget towards the obligatory services ?

2/ Since O&M was built into the EPC and construction costs, isn’t there an incentive to do as little for a less as possible ?

3/ As a cost center division the O&M is a burden from normal operations. Available capital is precious and most likely diverted towards the PROFIT centers of the organization

O&M CHALLENGES

AS A COST CENTER

1/ The O&M service provider is incentivized towards increasing costs and profits on within ALL portfolios extending beyond the EPC and COD scope of work.

2/ The contentious dialogue ( five to ten years ) begins after COD. What IS and IS NOT included inthe SOW. All other work becomes a T&M item !!!

3/ T&M ( beyond scope of work ) can develop into a blank check !!

O&M CHALLENGES

$$$ AS A PROFIT CENTER $$$

O&M CHALLENGES

TOP TEN LIST OF GUARANTEED WAYS TO

REDUCE ANNUAL O&M COSTS

• IMPLIMENT O&M WITHIN THE DESIGN AND INSTALLATION

• PROFIT OR COST CENTER. ALIGN THE SCOPE OF WORK TO THE BUDGET AND IDENTIFY SHORTFALLS

• HAVE A CONTINGUECY PLAN AND BUDGET. ALLIGN ALL THE PARTIES

• IMPLIMENT THIRD PARTY OWNERS REP DURING CONSTRUCTION AND THIRD PARTY COMMISSIONING AGENT

• DISCUSS AND NEGOTIATE WHEN AND WHERE ADDITIONAL FEES WILL APPLY

• INSIST ON A HIGHER LEVEL ASSET DATA CONTROL PLAN

• INSIST ON A RELIABLE, ROBUST MONITORING AND REPORTING SYSTEM. HOLD THE OEM ACCOUNTABLE FOR MALFUNCTIONS AND ERRORS

• INSIST ON IMPLEMENTING A WELL DOCUMENTED INVENTORY OF ALL CRITICAL ASSET COMPONENTS

• CONSIDER A HYBRID O&M SCOPE OF WORK ON A BIANNUAL ROTATION

• USE LOCALIZE LABOR FOR ALL SCHEDULED ACTIVITIES REDUCING TRAVEL,HOTELS AND OVERTIME. INSIST THAT YOUR SERVICE PROVIDER CAN DELIVER AND BE FULLY COMPLIANT

1. IMPLIMENT O&M WITHIN THE DESIGN AND INSTALLATION

2. PROFIT OR COST CENTER. ALIGN THE SCOPE OF WORK TO THE BUDGET AND IDENTIFY SHORTFALLS

3. HAVE A CONTINGUECY PLAN AND BUDGET. ALLIGN ALL THE PARTIES

4. IMPLIMENT THIRD PARTY OWNERS REP DURING CONSTRUCTION AND THIRD PARTY COMMISSIONING AGENT

5. DISCUSS AND NEGOTIATE WHEN AND WHERE ADDITIONAL FEES WILL APPLY

6. INSIST ON A HIGHER LEVEL ASSET DATA CONTROL PLAN

7. INSIST ON A RELIABLE, ROBUST MONITORING AND REPORTING SYSTEM. HOLD THE OEM ACCOUNTABLE FOR MALFUNCTIONS AND ERRORS

8. INSIST ON IMPLEMENTING A WELL DOCUMENTED INVENTORY OF ALL CRITICAL ASSET COMPONENTS

9. CONSIDER A HYBRID O&M SCOPE OF WORK ON A BIANNUAL ROTATION

10. USE LOCALIZE LABOR FOR ALL SCHEDULED ACTIVITIES REDUCING TRAVEL,HOTELS AND OVERTIME. INSIST THAT YOUR SERVICE PROVIDER CAN DELIVER AND BE FULLY COMPLIANT

Heard-CTOjefferson@365pronto.com

Rue Phillips –CEOrue@365pronto.com

Jefferson Heard-CTOjefferson@365pronto.com