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Power projects usually contain a period of time, prior to completion and taking over, where power is being generated and can be sold into the grid or to an offtaker. Earlier this month, the Supreme Court of Victoria ordered an EPC Contractor not to prevent power generation for an onshore wind farm project during such a period.
Early generation revenue during a power project can provide a significant income stream in the early stages of a power project, and is therefore sought after where available. But it can never be assured, due to the many variables affecting the process of designing, constructing and commissioning a project. The Lal Lal Wind Farms case considered a project where early generation revenue was imperilled due to a contractor s proposal to stop generation for an unspecified period of time in order to rectify defects.