Phase 1: Design Engineering (2-3 months)
– Detailed system design
– Bill of materials specification
– Civil & electrical drawings
– SCADA system specification
– Performance simulations
– Regulatory compliance documentation
– Quality assurance protocols
Deliverables:
– Complete design documentation
– Single-line diagrams
– Civil structural drawings
– Electrical schematics
– 3D site layouts
– O&M manuals
– Warranties & compliance certificates
Cost: 10-15% of project cost
Quality: International standards (IEC, IEEE, NFPA)
Phase 2: Procurement (4-6 months)
– RFQ preparation for all equipment
– Vendor evaluation & selection
– Purchase order negotiation
– Quality compliance agreements
– Factory Acceptance Testing (FAT) coordination
– Delivery scheduling & logistics
– Warehouse & inventory management
Equipment Sourcing:
– Solar panels: Tier-1 manufacturers
– Inverters: ABB, Siemens, Schneider
– Transformers: Premium quality
– Balance of plant: Certified suppliers
– All with 10-25 year warranties
Quality Assurance:
– Third-party inspection at source
– Compliance certification
– Performance guarantees
– Spare parts warranty
Phase 3: Construction & Installation (6-9 months)
– Site mobilization & preparation
– Civil infrastructure development
– Electrical installation
– System integration & testing
– Quality inspections (100% of components)
– Compliance documentation
– Safety protocols & worker training
Resources:
– Project management team: 5-10 engineers
– Civil workforce: 50-500 laborers
– Electrical workforce: 50-300 technicians
– QA/QC team: Independent verification
– Safety officer & medical staff
Timeline: Varies by project size (5 MW = 6-8 weeks, 50 MW = 3-4 months)
Quality: Zero-defect construction target
Safety: ISC/OHSAS 18001 compliance
Phase 4: Testing & Commissioning (2-3 months)
– Factory Acceptance Testing (FAT)
– Site Acceptance Testing (SAT)
– Performance verification
– Grid synchronization testing
– Safety certifications
– Final inspection & approval
– System performance documentation
Deliverables:
– Performance reports
– Warranty documents
– O&M training certificates
– System handover documentation
– Performance guarantees (written)
Timeline: Parallel with construction (months 6-9)
Warranty: Comprehensive post-commissioning support
What’s Included in EPC Services:
DESIGN ENGINEERING:
✓ Optimal system configuration
✓ Equipment selection & sizing
✓ Layout planning
✓ Regulatory compliance review
✓ Performance estimation
PROCUREMENT:
✓ Global equipment sourcing
✓ Quality verification
✓ Bulk discounts negotiation
✓ Vendor management
✓ Logistics & warehousing
CONSTRUCTION:
✓ Civil works (site development)
✓ Structural installation
✓ Electrical installation
✓ System integration
✓ Quality assurance
TESTING & COMMISSIONING:
✓ Factory acceptance testing
✓ Site acceptance testing
✓ Performance verification
✓ Grid connection
✓ Final inspections
PROJECT MANAGEMENT:
✓ Timeline management
✓ Budget control
✓ Quality oversight
✓ Risk management
✓ Stakeholder coordination
OPERATIONS SUPPORT:
✓ Staff training
✓ O&M manual preparation
✓ Performance monitoring
✓ Troubleshooting support (1st year)
Typical EPC Cost Breakdown (% of Project Cost):
Design Engineering: 10-12%
Procurement: 50-55%
Construction & Installation: 25-30%
Testing & Commissioning: 5%
Project Management: 3-5%
Contingency: 2-3%
TOTAL EPC COST: 95-100% of project cost
(Rest covers owner’s expenses, permits, financing costs)
CERTIFICATIONS & STANDARDS:
Engineering:
– IEC 61215 (PV module safety)
– IEC 61730 (Module performance)
– IEEE 519 (Grid harmonic standards)
– NEC (National Electrical Code)
Equipment:
– BIS certification (Solar modules)
– IEC certification (All components)
– Manufacturer warranties (10-25 years)
Construction:
– OHSAS 18001 (Occupational health & safety)
– ISO 9001 (Quality management)
– ISO 14001 (Environmental management)
Testing:
– IEC 61000-3 (Grid compatibility testing)
– Grid code compliance (State/National)
– Safety certifications
PROJECT MANAGEMENT:
– ISO 21500 (Project management)
– Risk management (ISO 31000)
– Stakeholder management protocols
Quality Control Checkpoints:
AT MANUFACTURER:
– Factory acceptance testing (FAT)
– Performance verification
– Documentation review
DURING LOGISTICS:
– In-transit inspections
– Damage assessments
– Proper warehousing
DURING CONSTRUCTION:
– Incoming material inspection (100%)
– Installation quality checks
– Electrical safety testing
– Structural verification
BEFORE COMMISSIONING:
– Full system integration test
– Performance under various loads
– Grid synchronization testing
– Safety compliance verification
AFTER COMMISSIONING:
– Performance monitoring (1 year warranty period)
– Regular maintenance schedule
– Issue resolution & support
Project Management Approach:
DEDICATED PROJECT TEAM:
Project Manager:
– Overall project coordination
– Timeline & budget management
– Stakeholder communication
– Risk management
– Final responsibility for delivery
Design Engineer:
– System design & optimization
– Regulatory compliance
– Quality specifications
– Equipment selection
Procurement Manager:
– Vendor management
– Cost optimization
– Quality compliance
– Logistics coordination
Site Manager:
– On-ground construction oversight
– Safety & quality assurance
– Timeline monitoring
– Resource management
Electrical Engineer:
– Installation supervision
– Grid integration
– Safety compliance
– Performance verification
QA/QC Officer:
– Independent quality checks
– 100% inspection protocol
– Defect documentation
– Compliance verification
COMMUNICATION PROTOCOLS:
– Weekly project meetings
– Daily site reports
– Monthly financial statements
– Quarterly stakeholder reviews
– Real-time issue resolution
Risk Management:
IDENTIFIED RISKS & MITIGATION:
Timeline Risk:
– Mitigation: Aggressive schedule management, buffer periods
– Escalation: Weekly timeline reviews, rapid decision-making
– Insurance: Liquidated damages coverage available
Cost Risk:
– Mitigation: Detailed budget management, vendor locks
– Escalation: Monthly cost reviews, value engineering
– Insurance: Cost overrun insurance available
Quality Risk:
– Mitigation: 100% inspection, third-party QA
– Escalation: Immediate corrective actions
– Insurance: Warranty guarantees, equipment insurance
Weather Risk:
– Mitigation: Construction scheduling, weather forecast integration
– Escalation: Alternative work packages during bad weather
– Insurance: Weather delay insurance
Technical Risk:
– Mitigation: Experienced team, proven methodologies
– Escalation: Rapid problem-solving, technical consultation
– Insurance: Performance guarantees, support contracts
Fixed-Price vs Cost-Plus Models:
FIXED-PRICE EPC (Lump-Sum):
– All costs defined upfront
– Developer knows exact investment
– EPC contractor bears cost risk
– Typical range: ₹1.35-1.45 crore per MW
Advantages:
– Cost certainty for investor
– No surprises during execution
– Clear accountability
– Better financing (banks prefer fixed-price)
Disadvantages:
– Slightly higher cost (risk premium)
– Less flexibility for changes
– Quality trade-off risk (EPC’s cost optimization)
COST-PLUS EPC:
– Cost reimbursement + management fee
– Typical markup: 7-12% on costs
– Developer retains cost control
– More flexibility for changes
Advantages:
– Potential cost savings (no risk premium)
– Flexibility for design changes
– Quality maintained (no cost-cutting pressure)
– Transparency on actual costs
Disadvantages:
– Final cost uncertain
– Requires active project management
– Harder to secure financing (uncertain cost)
– Complex billing procedures
PREFERRED BY DEVELOPERS: Fixed-Price
PREFERRED BY EPC: Cost-Plus
Most Common: Fixed-price with escalation clauses
EPC Terms & Conditions:
TYPICAL TERMS:
Payment Schedule:
– 10%: Contract signing
– 20%: Design completion
– 40%: Equipment delivery
– 20%: Installation completion
– 10%: Commissioning & handover
Performance Guarantees:
– Generation guarantee: ±5-8% of design estimate
– System availability: 99%+
– Equipment warranties: 10-25 years as applicable
Warranty Period:
– Defects warranty: 18-24 months (post-commissioning)
– Performance warranty: 25 years (panels)
– Equipment warranty: 5-10 years (as per manufacturer)
Force Majeure Clause:
– Natural disasters: Extension of timeline
– Government actions: Cost-sharing model
– Unforeseeable events: Project pause option
Dispute Resolution:
– Arbitration clause (ICC or local)
– Escalation path (Project Manager → Director → Arbitration)
– Timeline for resolution: 90 days
