P15
CRITICAL FACTORS FOR SUCCESS To maintain momentum, projects need to enable all participants to work towards project objectives. Success comes from attention to critical success factors outlined below:
Identifying risks and allocating them Unmanaged risks can be potentially disruptive. Once identified and understood, they should be allocated to the party best able to manage them. Assigning risks to an external party may increase overall costs, as it will be priced into their charges. Thus, managing risk internally might be a more cost effective solution.
Feasibility In addition to equipment selection for performance, underground piping routes, and topology for distribution system must be explored. It is critical to plan for real estate development that proceeds faster or slower than expected, and develop customer connection timelines. Estimated revenue from anchor customers will be needed to cover initial investment costs, including sufficient capital for customer conversion, metering, and interconnections. Delays in system build-out may impact revenue stream, budget and timing of service to customers. It is good practice to have contingency funds of 20-30% to cover unforeseen construction circumstances including challenging piping routes or delays. A preliminary cost of service study and hurdle rate analysis is useful to determine rates and return on investment options and build potential service rate/tariff structure for customers. Design build The practice of nodal development with enough physical space for maintenance, replacement and modular production facility growth helps manage future growth while avoiding over-sizing systems, leading to poor system performance at partial loads and tying up capital in assets.
Obtaining, using and disseminating good quality data
Data quality impacts project design and performance. Locally available data (such as building performance and benchmarking data from existing property) can often be obtained faster and more inexpensively than estimating new building energy use profiles.
Seeking and obtaining appropriate levels of funding
Aligning the type and level of funding with the project stage helps target options such as grants, public funds, utility incentives, project finance, revenue bonds and equity. De-risking projects helps attract private capital.
Making sure to have the right people with the needed expertise
A successful development project often requires a focused and dedicated internal champion supported by experienced industry resources with relevant skills.
LIFE CYCLE STRATEGIES FOR SUCCESS Each project stage has different success milestones, risk profiles and financial needs and require specific best practice activities aimed at risk mitigation to advance the project to the next stage. Concept In this stage, it is critical to clarify stakeholder objectives, identify and understand risks and pursue grants/public funds to develop early stage conceptual designs.
Development Distribution pipeline Heat source Anchor heat loads
Heat loads Transmission pipeline Power station
Information for conducting a first order DE/CHP screening should include district composition, phasing and buildout timelines, zoning, land-use requirements local, state or regional permits for air emissions and water use and potential thermal demand.
Systems designed with measuring, monitoring, and metering help optimize system performance while commissioning before final system sign-off avoids customer complaints, sub-optimal operations and financial losses.
Heat maps provide a useful picture of local heat demand and supply options.
www.dbdh.dk
A N N I V E R S A R Y I S S U E 2 0 1 8
Made with FlippingBook Converter PDF to HTML5