Mastering Project Management in Renewable Energy Construction

Demand for renewable energy has never been higher. Corporations — including some of the largest and most powerful in the world — are working to quickly transition to new energy sources as a way to reduce their carbon footprints and gain an edge in the future. Many government entities are setting ambitious sustainability goals. Every day, people are becoming more interested in and aware of the renewable sector’s potential and importance. 

One of the groups working to meet this swelling demand are project managers, who are charged with overseeing the process of making renewable goals and visions into a reality that changes how people live, work and think about the future.

This article explores project management of renewable energy projects, including the nature of the sector and some of its unique challenges. 

Renewables: Urgency and Demand for Speed

The push towards renewable energy is largely driven by a combination of sustainability commitments, economic incentives and regulatory pressures. A handful of municipalities and many corporations are setting ambitious goals, investing heavily and entering into power purchase agreements, which are contracts with a developer who develops, builds and maintains renewable energy systems and provides the buyer with electricity at a fixed rate.

All of this is good news for the renewable energy sector, but it also creates an intense pressure to deliver projects as quickly and as effectively as possible. 

Project management of renewable energy construction jobs has adapted to respond to the fast-moving demand for projects that are often large-scale and high-budget. Traditional forms of construction often rely on long chains of command and hierarchical organizational structures for decision-making. Teams working in renewables often adopt flat organizational structures, which have fewer layers of management and empower employees to take initiative and make decisions within their areas of expertise. A less hierarchical approach promotes more direct communication and collaboration among team members, which can help avoid bureaucratic bottlenecks, respond to challenges dynamically and ensure decisions are made quickly and effectively.

The EPC Model

To move quicker and further enhance efficiency, many renewable energy projects are commonly completed by using an Engineering, Procurement and Construction (EPC) model. The conventional design-bid-build approach can easily extend into protracted processes as various contractors coordinate segmented parts of the process. On the other hand, the EPC model usually has one contractor assume control of the project at about 30% of design through to completion, which helps streamline planning, increase speed and efficiency and allow multiple parts of the building process to happen concurrently. 

In the U.S., many clients or owners prefer to handle procurement of large equipment, such as solar panels, wind turbines or large generators, since they’re often able to leverage their purchasing power across portfolios of projects or build on relationships they’ve developed with suppliers. This can lead to reduced costs and decisions that align with an owner’s long-term operational goals. However, contractors should maintain good communication and collaboration throughout the procurement process to assist with logistics and ensure equipment meets all required specifications.

Key Challenges in Renewable Energy Project Management

The fast-paced nature and specificity of renewable energy projects present unique challenges, even with all the adapted efficiencies. Challenges vary based on a number of considerations, such as project type, the owner, location and local regulations. There are a few ways to handle some of the most common challenges.

Engineers must adapt.

In a traditional infrastructure project, such as a bridge or highway, the engineering process is typically linear and highly structured. This encourages engineers to work towards minimizing risk through extensive upfront planning.

Renewable projects tend to move too fast for that. Engineers working on renewable energy projects have to shift that mindset towards managing risk through agility, innovation and flexible problem-solving.

Talent is in demand. Be prepared.

In a sector with such demand, the competition for skilled talent can get fierce. This can lead to high turnover, which can impact team continuity and project timelines. Renewable energy projects require PMs to be particularly adept and knowledgeable about all parts of building and maintaining high-performing teams, including building culture, onboarding and succession planning.

Plan for supply chain complexities.

The equipment in renewable projects — such as transformers, solar modules or wind turbine generators — can be difficult to procure, as they tend to be expensive, hard to transport or extremely specialized. This leaves the procurement process prone to long lead times and supply chain disruptions, from variables such as increased demand or economic and political events. Effective PMs work to proactively plan ahead, manage risk and collaborate with clients.

Be prepared for high-stakes situations.

Renewable projects tend to represent massive investments for companies, energy providers and tax payers. Clients are often eager to see quick returns. This high-stakes, high-stress environment requires PMs to focus on efficiency and risk management more than they might in more predictable sectors of construction.

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The Importance of Engaging and Communicating With Stakeholders

Fast pace, big investments and high hopes. Project managers have a lot to navigate when engaging with stakeholders on renewable projects. For example, a PM working to develop a wind farm might need to handle community concerns about aesthetic impact, AHJ concerns about environmental preservation and owner’s concerns about budget. 

Listening to and incorporating public input can help find solutions and create outcomes that balance regulatory requirements, cost-effectiveness and community interests. For example, some solar projects have created vegetative screening that addressed aesthetic concerns. This type of generative, collaborative approach turns potential opposition into support.

Project managers should be proactive, engaging stakeholders early and communicating often to build trust and manage concerns. Not only does this facilitate a smoother, more efficient construction process, it also helps improve the project’s long-term acceptance and success.

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