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project scope and plan
Project Scope and Plan
The first steps taken to initiate a renewable energy project are critical. A large range of possibilities must be methodically researched and evaluated until the most promising set of actions is determined. A project charter or project plan is a useful tool to formally initiate the project and take the first steps. A project plan typically includes the business needs that the project will address, a project description, scope definition, identification of the project manager and team, and list of constraints and assumptions. It may also include a change control process that identifies how changes will be evaluated, managed, and integrated into the project.
The project plan should be formulated and agreed upon by the project coordinator(s) and anyone underwriting the project through financial or other means. Initially, the plan will serve as a set of objectives and guidelines to focus efforts without too much basis on unverified information. As information is gathered and project design aspects are solidified, attention should also be paid to regulatory compliance, minimizing environmental impacts, ease and cost of maintenance, and meeting the expectations and goals of the stakeholders. One key task when writing a project plan is identifying which information gaps need to be filled. Early identification and resolution of important questions reduces project risk and facilitates project development. To assess which information is most crucial, one must consider the influence of factors such as potential project ownership and financing structures, likely technical and environmental issues, project scale, and schedule flexibility.
If the project is complicated, the overall project plan may be composed of several subplans:
Technical Plan: All renewable energy projects have many technical factors to consider. These include the resource data, technology performance, electrical interconnection, site access and constructability, construction design, and forecasts of expected production.
Permitting Plan: Most renewable energy projects will require a variety of permits, ranging from building permits to Conditional Use Permits (CUPs). These are usually issued by the county and influenced by what kind of entity owns the site and how it is zoned. A permitting plan includes surveys of the site property for environmental and other purposes, translation of technical factors into a permittable project layout, and a schedule for filings and hearings.
Community Education Plan: Nearly all energy projects affect people outside the site boundary, so this plan focuses on how and when local stakeholders will be informed and consulted with about the project.
Financial Plan: All renewable energy projects have a strong financial component, which determines profitability or achievement of other goals, which incentives are used and how, who takes risks and earns rewards, how the development budget is controlled, and what has to be done to qualify for the intended financing.
Business Plan: This plan synthesizes all other plans into a coherent whole relative to the project’s objectives and risk-management strategies. It includes a schedule, progress metrics, and a strategy for how problems or major changes in direction will be addressed. The business plan may be organized around particular milestones or decision points. It also will include the legal actions to assure development rights on the site property, the legal aspects of various applications for permits and financial resources, the utility interconnection agreement, the electricity sales contract, and other legal and professional contracts.
Another important element in planning and designing the project is to define each step and process that needs to be completed in both the long and short term. A Gantt chart is a tool that can be used to schedule tasks, assign resources, and identify the critical path for the project. Gantt charts typically include a sequential listing of tasks, resources, duration, relationships, and dependencies. However, they can also be used to track budgets, changes in milestones, and completion risks. When the project is under way, Gantt charts can be used to monitor whether the project is on schedule. If it is not, it allows the project manager to pinpoint remedial actions necessary to put it back on schedule. A sample Gantt chart for a community wind project can be found here.
