AUGUST 24, 2022
The Impacts of Scale on EPC Solar Projects
As a leading national solar EPC, Borrego has performed the engineering, procurement and construction on more than a gigawatt of distributed generation (DG) and small and medium sized utility-scale solar power plants, spanning hundreds of projects. As the industry continues to scale up and our own work has transitioned from DG to utility scale, we’ve learned that although there are many similarities between DG and larger utility projects, there are also significant differences. Here are some of the lessons we’ve learned about the impacts of scale on solar projects:
Staffing at Scale
One of the obvious differences between DG and utility EPC is scale. Take the size of the projects themselves and the impact it has on project staffing. A typical 10 MW DG site requires a team of 40-50 solar installers; this number grows to 200-300 for a 100 MW-plus job. This means more time, effort and expense must be spent on hiring and training work crews, which is even more difficult if it’s in a region with little or no track record of big solar plants.
With larger-scale projects, we’re often working with a full-time team of builders, who move between multiple job sites in a portfolio as each construction phase ramps up. This has an impact on allocating resources, requires more complex coordination and delegation, and comfort with a new level of risk mitigation than what EPCs see on smaller-scale DG installations. In response to these new needs, we reorganized our director-level EPC operations team to better align with the responsibilities of managing these large projects.
Bigger Projects Means Larger Procurement & Logistics Needs
Another area where scale looms large is logistics and parts procurement. It’s not just that larger projects require more modules, inverters, and balance of system (BOS) components, or that connecting to a 34 kV line requires another level of equipment and safety protocols. It’s also the small stuff. Just finding the local materials can be a challenge in the quantity needed for utility scale projects. The 100 bolts one could easily procure locally for a DG project suddenly becomes thousands of units for a utility-scale job, and locating nearby materials can require preparation and persistence — not to mention the buying strength of an EPC that regularly performs this level of procurement.
In addition to the sheer quantity of parts needed, these big projects also require the procurement of the larger components as well. Unlike some aspects of DG projects, utility scale is not always an off-the-shelf world. The bigger equipment has longer lead times, often several weeks or months, with a plethora of custom components that must be finely-tuned to complicated project system variables. Having an EPC with a national logistics network becomes ever-more critical for success.
New States, New Utilities, New Challenges
Utility-scale solar is rapidly expanding into new states that, for the most part, have not seen many (or any) utility-scale solar farms built in their territories. For utilities inexperienced with large-scale PV projects, there is a definite learning curve, which can lead to moments where agreements must be reconciled and expectations clarified. Right now, Borrego has seven large projects in preconstruction or construction, spread across states including Ohio, Michigan, South Dakota and Montana. Even though we have built scores of DG projects with the customers that are developing and will own these plants, this will be the first time we’ve collaborated with them on larger-scale projects—and in some cases it’s also the first time either side have worked with unfamiliar utilities.
Working with a trusted EPC partner can go a long way to alleviate the challenges and smooth the process. For example, during the design phase of one of our projects, there was more back and forth than one would expect to see with a utility more experienced with larger projects. It took a lot of horsepower from the Borrego team and our partners to understand the issue, go back and review earlier agreements, and then hammer out the final design. One utility requirement that wasn’t clearly identified required additional substation equipment to meet the utility’s power factor requirements. We discovered this when the substation design was 90% complete, and in order to finalize the design we had to pivot and make adjustments to our plan to get it done.
Bigger Projects, Higher Stakes
This brings up another significant difference between DG and large-scale utility: these big projects have a tight timeline with much more riding on the system coming online. With DG projects, when hiccups happen, there’s usually some flexibility about pushing back the COD date. But with large-scale utility solar projects, we have to adjust to situations more quickly and work closely with local jurisdictions to get things approved while staying on schedule.
Specialized Subcontractors for Large-Scale PV
Building large-scale solar projects in emerging markets requires the creation and nurturing of partnerships with regional subcontracting talent. Even EPCs that largely self-perform their utility-scale projects will occasionally need specialized subcontractors to perform certain jobs. Disciplines such as geotechnical, earthworks, civil engineering and substation work already have highly specialized skills and deep experience, and they own the heavy equipment that is necessary to do the job. We need their help to successfully complete these projects.
Learning Lessons in Real Time
Some of the most valuable feedback for best practices and possible areas of improvement comes directly from the onsite crews building solar projects. On a smaller jobsite, teams can quickly share ideas around the construction trailer. But on utility-scale projects with large crews coming and going, it can be a challenge to get direct input or make sure their ideas are shared upward. One way we’ve discovered to harness this feedback is by placing onsite QR code systems that can be scanned on a smartphone or tablet. This launches a quick survey workers can fill out to share what they learned, things that could be improved, and the like. The feedback could be something as seemingly benign as a new, more efficient way to pull cable. By opening up the feedback loop to the roots of the workforce, we have seen improved workflow and enhanced morale at the worksites.
Success at Scale
Some of the most valuable feedback for best practices and possible areas of improvement comes directly from the onsite crews building solar projects. On a smaller jobsite, teams can quickly share ideas around the construction trailer. But on utility-scale projects with large crews coming and going, it can be a challenge to get direct input or make sure their ideas are shared upward. One way we’ve discovered to harness this feedback is by placing onsite QR code systems that can be scanned on a smartphone or tablet. This launches a quick survey workers can fill out to share what they learned, things that could be improved, and the like. The feedback could be something as seemingly benign as a new, more efficient way to pull cable. By opening up the feedback loop to the roots of the workforce, we have seen improved workflow and enhanced morale at the worksites.
Larger utility-scale solar projects demand another level of attention to workforce development, project management, procurement, logistics, subcontractor relations, customer and utility collaboration, and real-time adjustments to changing conditions. Regardless of the scale or complexity of the project, certain things remain constant for any successful EPC. At Borrego, we work closely with stakeholders to address any pain points and solve any problems that may arise. We’re always looking for the best way to drive safety, quality, and on time delivery to benefit our partners. We do this by leveraging our core values of professionalism, trust and transparency, and building long-term relationships with our partners.