There are two foundational processes that act as key drivers for the success of every power plant: support and development. A trusted asset management (AM) partner is pivotal to these crucial preparatory elements in each stage of power plant management. The right AM serves as a cross-functional team member with the aptitude for assessing financial goals and objectives, identifying the intricacies of negotiation processes, understanding engineering operations and guiding fuel management, to ultimately ensuring a holistic approach is taken to each unique project.The pivotal roles undertaken by an AM partner in the support and development process of a power plant project are paramount. This strategic alliance plays a critical role in ensuring the seamless functioning and sustained growth of the project. The AM partner assumes the responsibility of overseeing various aspects including project support and development, and in turn, contributes invaluable expertise to ensure optimal efficiency and performance. Through proactive management, meticulous planning and a deep understanding of the intricacies of power plant operations, the AM partner becomes an indispensable force in driving success. The following are the key roles of an AM partner in the power plant project support and development process.Identifying and Executing Strategic Objectives&nbsp; As direct representatives of the power plant, AMs are just as committed to the overarching goals of the facility as the owner. Playing a large role in the oversight of various operations, they have a bird’s-eye view of all that is taking place both in and out of the plant. Because of this, they become a guiding pillar in nurturing stakeholder relationships, leading the enterprise toward its overarching goals by developing strategic values, breaking down silos and encouraging a consistent and clear flow of communication. AMs utilize their experience and relationships to dive deep into the ins and outs of operational dynamics, allowing them to significantly contribute to the enhancement of the organization.Proficiency in Regulatory Compliance&nbsp; Local and government regulations are constantly in a state of ebb and flow. AM teams are charged with staying abreast of the fluctuations to ensure power plants remain ahead of the curve and in full compliance. This allows them to address any shifts and navigate challenges in advance, which is particularly helpful in the dynamically changing environment of renewable energy. For example, AMs can help owners and operators negotiate with wood waste organizations to maintain competitive pricing, even when policies affect facilities. This shows how important the relationship between AM expertise and effective policy engagement is within the power generation industry.Financial Prowess&nbsp; Asset management and the financial well-being of projects go hand in hand, as there is always a primary focus on revenue targets and expense optimization. AMs have expertise in budget management, contractual commitments and operational challenges, making them a strong asset as plant supporters. Their role entails scrutinizing expenditures, analyzing revenue streams and developing financial plans to keep apprised of the plant’s fiscal health and project trajectory. Such financial prowess serves as a major value-add when it comes to strategic planning and budget efficiency.Achieving Operational Excellence&nbsp; Partnering with an outsourced AM allows power plant owners the opportunity to feel secure with a ready-made solution that is seamlessly integrated into the facility’s overarching business operations. This strategic decision helps streamline operations while providing connections to individuals who have a wealth of knowledge and experience in the field. By tapping a third-party AM partner, owners can put more time and focus into tasks and projects they may otherwise not have had the time for, as they now have the resources available to relinquish the heavy lifting of managing complex internal teams.Strategic Approach to Selecting the Right AM&nbsp; Selecting an experienced AM is more than simply investing in protecting your power plant’s profitability; it’s a decision to find a partner who will become a trusted extension of your internal team and is in full alignment with your organization’s culture and goals. When there is a harmonious relationship between the two parties, innovation and success are achieved.The world of power generation is a dynamic one, therefore the role of AMs in the field will continue to grow in significance. Their unmatched blend of financial acumen paired with operational knowledge, regulatory finesse and cultural alignment is key to power plant project development and support. By taking advantage of the opportunity to work with an AM, plant owners can ensure optimal facility outcomes while fostering growth and success. Author: Katy Falkenborg&nbsp; General Manager and Senior Director of Renewable Energy Asset Management&nbsp; IHI Power Service Corp.&nbsp; ihipower.com

2024-01-15 - Utilizing an Asset Management Partner    (Biomass Magazine)

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A trusted asset management partner is pivotal to these crucial preparatory elements in each stage of power plant management. 

Utilizing an Asset Management Partner

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