Rodolfo Flores
Country Manager Mexico, Energy Division
DNV GL
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View from the Top

Due Diligence Vital for Project Bankability

Wed, 02/21/2018 - 17:39

Q: What is DNV GL’s assessment of product certification in Mexico?

A: Product certification is mainly focused on assistance for manufacturers. They come to our laboratories for the relevant tests and analyses. Our primary laboratories are located in Berkeley, California. These tests are vital when it comes to product and project bankability. In Mexico, we have yet to offer these services. We have detected better opportunities in renewable energy advisory services: due diligence, measuring campaign designs and on-site resource evaluation, both for solar and wind power.

Q: What has DNV GL’s extensive background research on Mexico’s solar market revealed?

A: Mexico’s solar market is still in its developmental phase. So far, only two relevant solar park projects, of less than 20MW each, have reached construction phase. In contrast, DNV GL has participated in more than 4GW of wind power projects. These include self-supply legacy contracts, first and second auction projects, and we are in talks for advisory services with potential bidders for the third auction. Additionally, we are overseeing several legacy-contract projects that still operate under the regulatory framework previous to the reform. Our company enjoys practical adaptability regarding any legal framework under which a renewable energy operates, including but not limited to self-supply schemes or smallscale production.

Q: What advantages do your clients gain from DNV GL's software and technology solutions?

A: Design software is prevalent in the renewable energy market — PV-Syst or DNV GL proprietary software SolarFarmer for PV systems or DNV GL registered software WindFarmer for wind power, for instance. Software in itself is not sufficient in terms of creating added value. The application of relevant Big Data analysis to mitigate uncertainty, generated by measuring campaigns, as DNV GL does through software using its proprietary Resource Panorama, are key. DNV GL uses its very own WindFarmer package of wind-farm design tools. These are licensed software solutions available exclusively to our clients that express development needs and have technical teams at their disposal. We also have measuring and monitoring software for meteorological data and are looking to incorporate thermographic camera-equipped drones into our wind farm and solarpark inspection services. These developments come from the most advanced inspection areas of European and US companies, which we are closely following and benefiting from their applications.

Q: What are the keys to DNV GL’s comparative advantage in renewable energy advisory services?

A: DNV GL’s foundation comes from a longstanding practice of merging with market leaders. This is why today we have a workforce of 15,000 employees worldwide. With 3,000 dedicated to the energy sector, and a presence in more than 100 countries, we are focused on developing innovative solutions and inserting them in the market. Mexico is no exception: our local offices have 12 trained expert professionals available to provide our advisory services on site.

Q: What are DNV GL’s long-term ambitions for Mexico?

A: We see ourselves as the undisputed leader in our segment, further consolidating in Mexico’s market. Through our work abroad, our company has become a reference for renewable energy projects. Several financial entities cite us and require us as participants to ensure a project’s bankability. We want developers to know that our due diligence and advisory services, beyond representing an additional cost, are a support tool that mitigates technical and nontechnical costs throughout the project’s entire life cycle. When it comes to analyzing cost-effective strategies, due diligence should be regarded as an investment because it translates into financing success for the project