How integrated EPC Projects are empowering infrastructure with complete energy solutions

In recent years, given the multitude of changes in the power industry, including grid hardening, renewable energy resource integration, and new load center additions, there have been a number of projects in the Indian energy sector that have experienced major cost schedules, overruns and an unprecedented pressure to improve and expand the power systems. That’s where the efficiency-boosting method that utilities can implement is the early integration of engineering and construction within the engineer-procure-construct (EPC) delivery model. Due to its extensive benefits such as - the ability to accelerate project schedules by integrating construction planning and long-lead equipment procurement with the design, the ability to provide owners with a single responsible party, the ability to transfer at least partial project delivery risk to a third party, and ability to outsource full project delivery when an organization is in full operation mode among many others, EPC projects are gaining acceptance at a very high rate in India. 

For integrated EPC projects, also known as “turnkey” projects, the EPC companies seek contractors like Advait Infratech who supply all the major components for transmission, distribution, and substation projects to EPC companies and provide all the human and material resources for the development. The partnership offers several significant benefits to both the project team and the project’s owner as without such coordination, utilities can find themselves at the risk of experiencing numerous shortfalls in project delivery, including possible delays and disrupted material procurement. And as the same team coordinates all the work, the project becomes a cheaper option than the traditional one, making it another of its most favorable advantages.

Benefits of EPC Projects

The EPC modality for any type of renewable energy installation has numerous benefits, following are the few highlighted:

• The availability of a single interlocutor in the different phases means investing less time and resources, in short making things transparent and easier. 
• By establishing intervention strategies employed to address savings or cost avoidance opportunities, EPC integration keeps projects on schedule and budget. It can avoid frequent causes of overrun such as: estimating errors, over-aggressive scheduling, missing out on anticipated procurement volume savings and rebates and reactive risk management among many more.
• Cheaper and makes it possible to establish a fixed amount in advance.
• Allows better control of risks as there are fewer parts involved throughout the project.
• Helps with the operation and maintenance (O&M) tasks to mitigate risks and solve possible unforeseen events.
• Helps clients to obtain better financing conditions.

EPC Solutions in Action

It is the result of enhancing the workflow efficiency and alignment through managing the interfaces between all involved, that the integrated EPC approach with its reimbursable pricing arrangements is poised to grow at 10-15 percent by 2022-23. The significant development in infrastructure spending across geographies in oil and gas, chemicals, telecom and renewable energy sectors only shows that the drive for more demand of EPC resources is only bound to flourish in coming times. 

By Shalin Seth- Founder, Managing Director, Advait Infratech Limited