While preliminary studies can point you in the direction of feasible project investment, the substantial commitment to take the next step demands increased analytical rigor. The Investment Grade Audit (IGA) provides the assurance you need to go to your management or funding sources with confidence.
An IGA will provide:
- A defendable set of assumptions on critical project variables
- Expected loads for electric and thermal energy requirements
- Specification based assumptions on equipment efficiency given load requirements
- Fuel cost and escalation
- Labor costs
- Maintenance costs
- Expected sales price for power and thermal energy
- Forecast of expected ISO "events" that could provide revenue opportunities
- Renewable Energy Certificates or other environmental revenue sources
- Capital budgets that provide accurate projections of where you project costs will come in and should be based on actual quotations from:
- Engineers, construction managers, and equipment suppliers
- Lawyers, bankers and development professionals
- A minimum of 30% engineering drawings
- A realistic schedule of project development, construction and startup
- A full inventory of required permits including timing and fees as well as actual studies required to attain permits
- A full set of financial projections for the life of the project including:
- Operating and profit and loss statements
- Balance Sheet
- Sources and Uses of Funds
The IGA is the document upon which you will base your final funding request to your ownership, lenders, investors or Board
The IGA can also be used to support grant applications and other funding requests.
