Renewable energy asset management covers compliance with the technical, financial and administrative aspects of an energy facility across the entire development, construction and operational phases. This includes a wide range of activities, such as:
As part of the renewable energy company’s day-to-day bookkeeping, accounting entries are recorded and calculated with the corresponding depreciation provisions.
The tax obligations of renewable energy projects need to be monitored and filed to ensure regulatory compliance.
This is likely to include the preparation of monthly or quarterly management reports, as well as the annual statutory accounts and external audits.
Technical asset management is about overseeing the operational phase of renewable assets. It ensures renewable energy companies are complying with all current technical regulations. It also helps to ensure they are maximising production performance and optimising costs. It can cover both the SPV itself, the parent company and any partners or suppliers.
Technical renewable asset management includes:
This will likely include remote monitoring of the facility. KPIs will be recorded, incidents analysed, control software reviewed, and health and safety systems checked and maintained. This allows for preventive and corrective action to be taken in a timely manner when necessary.
This is a key element of renewable energy asset management. In order to increase production and extend the life of the facility, asset managers will regularly check that the plant is operating optimally. They will analyse deviations between actual and expected performance, the causes of any incidents, and propose improvements.
Renewable energy companies will need detailed technical reports on the performance of their assets. This ensures they have a comprehensive understanding of their production data, technical and contractual availability, any malfunctions or other issues.
These reports may also include:
Asset management consulting aims to optimise maintenance and lifetime profitability of assets.
For example, this might include:
Asset owners need a full understanding of the costs and benefits of any investment proposals or action plans. A comprehensive analysis of the data and performance of the assets will help ensure they have this.
PPAs are contractual agreements between energy buyers and sellers. They can be a highly effective way of optimising renewable energy projects and can provide an alternative security to replace government subsidies. However, they can be complex to negotiate and we would strongly recommend seeking specialist advice.
Learn more about renewable energy asset management.
Find out more about AccountsIQ’s renewable energy accounting software.