Tsa Turbine Supply Agreement

19 Dec

The decision on the scope requires decisions regarding the amount of the owner`s participation. Who should take care of the logistics? Should the delivery of a certain number of technicians be the responsibility of the owner? Does the owner have the right to participate in technical studies or cause analyses? The level of ownership participation must be consistent with the overall O-M strategy. For example, taking into account a full takeover after the end of the warranty requires significant ownership in order to ensure a smooth recovery and allow the owner to operate the wind farm independently. Spare parts and tools are often overlooked. How do you ensure that spare parts can be delivered during and after the ADM period and at what cost? Does the owner need to acquire a first stock of spare parts? Or is a time pricing concept the right solution? As an owner, you must ensure that the price of spare parts is agreed under the ADM and that the supply of spare parts is safe for the life of the asset. When defining the duration of your ADM, the first OEM often insists on long-term service agreements. But is this the right solution for your wind farm project? Is a full service agreement required after the TSA guarantees expire? How do you want to operate your wind farm throughout its lifespan? Your ADM should not only support your specific project business, but also be part of the long-term portfolio strategy and ensure the right options within the ADM is of the utmost importance. . For example, the inclusion of an exit fee option or explicit options for reduced benefit areas, which maintain contractual flexibility for future optimizations.

Operating expenses (“OPEX”) can represent 25-30% of the total life of a wind farm, even more so when it is an offshore investment value. The majority of these costs are under a single contract – the turbine service and maintenance contract (hereafter the SMA). Given the significant impact of ADM on the entire owner`s business case, it is essential to have a well-defined and optimized contract. This article examines the ADM contract from the owner`s perspective and addresses the important issues that often arise during negotiations.