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EPC contracts are commonly used overseas (including in Australia). However, until recently, they have not been as frequently or commonly used in New Zealand, and there is currently no New Zealand standard form EPC contract available for use by renewable energy developers.
Solar projects are typically procured on the basis of an EPC contracting model (in large part due to the “bankability” of this model). However, EPC contracts are not common in the domestic construction industry – there is no market 'standard' form in New Zealand.
Similar to “Principal's Requirements” commonly found in a D&C contract, an EPC contract will generally include “Employer's Requirements”. This is often a limited output specification, which sets the parameters and objectives that the contractor must meet.
Increasing electricity production will also enable the decarbonisation of the economy – which is needed to meet New Zealand's climate goals. Despite the building of more renewable generation plants, future prices 1 for winter 2024, 2025 and 2026 remain high (see figure 1).
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