In the context of investments in the renewable energy sector, due diligence is a process that involves a comprehensive assessment of the project, from the initial design and permitting phase all the way through to the construction and operation of the project.
In the design and permitting phases, the process consists of the assessment of the project site plan and the project and its possible implications during the investment, implementation and operation phases.
For all parties involved, including developers and investors, identifying and managing possible risks related to wind and solar renewable energy projects is essential. Before making an investment in a renewable energy asset, it is important to consider both the technical and legal issues, including any potential financial ramifications. This guarantees that the appropriate resources are mobilized and allocated, as well as that the proper decisions are made.
A project evaluation will make sure that investors in the renewable energy sector can base their judgments on actual data. Some of the areas assessed in this procedure are the following:
· Feasibility studies
· Identification and analysis of all factors to be considered in the development and permitting process (and implementation stages)
· Identification of grid connection limitations and their implications
· Wind or solar energy yield assessments
· Any legal aspects relevant during the development phase