From sourcing to close: how a renewable project comes together

From the outside, a renewable energy project seems to begin when construction starts. In reality, construction is the visible end of a long development process. Before the first module is mounted or turbine erected, a project must secure land, grid access, approvals, a buyer for its power, a construction contract and financing — and all of these must fit together.

The workstreams

Development isn't a straight line. Several workstreams run in parallel, each depending on the others.

1. Site and land

Find and secure suitable land. See how developers source and qualify land and land aggregation.

2. Grid connectivity

Secure the right to connect to the grid and plan evacuation. See grid connectivity basics.

3. Resource and technical studies

Measure solar or wind resource, carry out geotechnical and topographical surveys, prepare layouts and energy yield estimates. See measuring the wind.

4. Approvals

Obtain the permits and clearances required. See renewable project approvals overview.

5. Offtake

Secure a buyer — through a tender, a PPA with industrial consumers, or captive arrangements. See tender-based offtake and what is a PPA.

6. EPC and procurement

Select an EPC contractor and agree scope, price and schedule. See how EPC partnerships work.

7. Financing

Arrange equity and debt. Lenders carry out due diligence on all the other workstreams.

How the workstreams connect

A delay in land delays grid applications. A change in grid capacity changes the layout. A problem found in lender due diligence can send work back to land or approvals.

The typical sequence

Early development

• Screen sites and grid options
• Begin land discussions
• Desk studies and site visits
• Initial resource assessment

Key decision: is this site worth pursuing?

Mid development

• Secure land agreements
• Apply for grid connectivity
• Detailed studies and layout
• Begin approvals
• Pursue offtake

Key decision: is the project viable and bankable?

Late development

• Finalise approvals
• Sign offtake agreement
• Select EPC contractor and agree contract
• Lender due diligence
• Resolve conditions precedent

Key milestone: financial close.

Construction

• Notice to proceed to EPC contractor
• Construction, commissioning and handover. See commissioning and handover checklist.

Bankability

Lenders look for a project where:

• Land rights are secure for the project life
• Grid connection is approved and deliverable
• Resource estimates are credible
• Permits are in place
• Offtake is contracted with a creditworthy buyer
• The EPC contract allocates construction risk appropriately
• O&M arrangements are planned

See investor due diligence for renewable assets.

Where projects get stuck

• Land documentation gaps discovered late
• Grid capacity changes
• Approvals that depend on each other
• Offtake delays or tender outcomes
• EPC price changes between bid and contract
• Lender requirements not anticipated

See where renewable project schedules slip.

Managing development

Good practice includes:

• One integrated schedule covering all workstreams
• A risk register updated regularly. See risk register for renewable projects.
• A documentation file built from day one. See project documentation file.
• Clear decision gates — continue, change or stop
• Early lender engagement to understand requirements

Who is involved

• Developer's team
• Land partners and landowners
• Technical consultants
• Legal advisers
• Grid and regulatory specialists
• EPC contractors
• Lenders and their advisers
• Government agencies

Coordinating them is a large part of development. See owner's-side project management.

Decision gates

Development spends money before revenue is certain, so it helps to set clear decision gates — points where the project is reviewed and either continues, changes or stops. Typical gates fall after site screening, after land and grid are secured in principle, and before committing to EPC and financing. At each gate, ask the same questions: what has been confirmed, what is still uncertain, how much more will the next stage cost, and what would make us stop? Projects that use gates honestly drop weak sites early and concentrate effort where it is most likely to pay off.

Keeping stakeholders aligned

Landowners, communities, utilities, consultants, contractors and lenders all see the project from different angles. A short, regular update — what has happened, what is next, what is needed from whom — keeps them aligned and reduces surprises. It is especially important with landowners, who may hear rumours long before they hear facts.

Common mistakes

• Running workstreams in isolation
• Leaving land due diligence until lenders ask
• Assuming grid capacity will be available
• Choosing EPC on price alone
• No integrated schedule or risk register

How we help

Through project advisory and project management, we work with developers and IPPs to coordinate land, approvals and partners across workstreams, keeping the project moving towards a bankable, buildable state. Construction is delivered through EPC partners.