Welcome to the #AssetManagementBites.
Every Monday we will be sharing with you one of the numerous recommendations, best practices and advises (“bites”) from the “Solar Asset Management Best Practice Guidelines Version 1.0”.
The document was developed by SolarPower Europe with the contribution of Alectris. The “Solar Asset Management Best Practice Guidelines Version 1.0” is a resourceful guide addressing the commercial and financial management of solar investments, balancing the risks, opportunities, costs, and performance benefits. The document aims to encourage asset managers to keep their services consistent and at the highest level.
Chapter 9: DATA MANAGEMENT AND HIGH-LEVEL MONITORING
9.1.6. Operational Risk Management
The Asset Management Platform should collect and monitor relevant data in order to mitigate the major risks which may arise during the life of the assets, in particular:
Keep track of serial numbers of components replaced to ensure the required communications to relevant authorities have been submitted (to avoid risks related to the authorisations in place)
Monitor and record all relevant maintenance interventions conducted in order to ensure that the plants are kept in an efficient status
Ensure key terms of insurance policies (e.g. deductibles, maximum reimbursable amounts) are consistent with the existing level of risks
Calculate and monitor relevant covenants (D/E, DSCR, LCCR) related to the financing in place (if any).
Download SolarPower Europe’s “Solar Asset Management Best Practice Guidelines Version 1.0” here.