Exhibit 2 There is a wide spectrum of engineering, procurement, and construction (EPC) contract models, involving varying levels of risk and required capabilities. EPC models, by internal capabilities There is a wide spectrum of engineering, procurement, and construction (EPC) contract models, involving varying levels of risk and required capabilities.
Full spectrum
Owner integrated, with installation
Construction
EPC multi-lot
Project management
Turnkey balance of system (BoS)
Engineering
Turnkey lump sum
Procurement
Turnkey models
Owner-integrated models
Extent of in-house risk, responsibility, and control
Source: McKinsey Onshore Wind and Solar PV EPC Benchmark
McKinsey & Company
Exhibit 3 Capabilities matter in both onshore wind and solar photovoltaic. Total capex/megawatt (normalized), index (100 = average normalized capex/megawatt for wind assets in peer pool) Capabilities matter in both onshore wind and solar photovoltaic.
Onshore wind Solar photovoltaic (PV)
120
100
80
60
40
20
0
2
3
4
5
Capability rating¹
1 Average score across eight value levers assessed in qualitative operating model assessment. Source: McKinsey Onshore Wind and Solar PV EPC Benchmark
McKinsey & Company
Accelerating the journey to net zero
145
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