Modern Energy Management (MEM), a specialist in delivering project lifecycle certainty to renewable energy developers, financiers and investors, has announced the signing of two retainer agreements to carry out early-stage site hunting in Vietnam and the Philippines. The agreements, which will see MEM undertake site prospecting work, offers investors access to the full breadth of MEM’s project screening expertise, reducing interface risks that frequently result in cost overruns and delays.
Under the terms of these agreements, MEM will carry out initial site prospecting in the two markets, to search for and assess suitable project sites. In particular, MEM will assess the potential wind resource, constructability and ease of access via roads and ports, and CAPEX factors associated with each potential site.
With a network of trusted local partners across Southeast Asia, MEM will also consider how these valuable relationships can best be utilized at prospective sites in Vietnam and the Philippines.
Early stage development is one of the most challenging and dynamic phases of renewable energy development, requiring broad expertise to confidently de-risk projects. Investors often worry that local developers add risks to the technical, commercial and financial elements of a project, but nonetheless they are vital for securing land and permits. MEM offers experience in the necessary risk management for clean energy project optimization, with expertise spanning several disciplines and thus bridging the gap between investors and local developers.
However, at this early stage of site development, investors have traditionally been wary of consultancies that stand to benefit greatly if a project faces more challenges and changes in scope. But by agreeing a fixed scope of work in advance, the retainer option offers investors access to a full set of services to support their needs, the ability to deal with project risks as they arise, and a significant discount, as they will have paid for those resources in advance.
“Retainer agreements such as these represent an excellent opportunity for investors to develop financially optimized, de-risked clean energy projects,” said Aaron Daniels, Managing Director at Modern Energy Management.
“The breadth of our market and technical expertise makes MEM very much a ‘one stop shop’ for those looking to avoid unnecessary expense as a result of unforeseen risks, and we’ll be putting this expertise to work to identify suitable project sites in Vietnam and the Philippines.”