Another Business Coffee meeting is behind us.

Another Business Coffee meeting is behind us, during which we focused on one of the most critical areas in renewable energy projects – EPC contracts and their significant impact on the ultimate success of an investment. ☕⚡

During the meeting, we took an in-depth look at several key risks and contractual mechanisms that often determine whether a project proceeds smoothly or encounters major challenges already at the construction stage:

• Ground risks;
• Hidden advance payments;
• Project finance challenges;
• Effective dispute resolution.

Ground risks concern responsibility for the quality and predictability of site conditions. This issue involves not only the proper allocation of risk under the EPC contract (to the extent permitted by applicable civil law), but also the timely and proper notification of claims. Unforeseen ground conditions may constitute exculpatory circumstances, relieving or limiting the contractor’s liability, for example, for delays in project execution.

We also highlighted that hidden advance payments – achieved through the intentional overvaluation of the initial project stages – may ultimately prove to be a “double-edged sword”, particularly in the event of early contract termination or a detailed review by financing institutions.

Another important topic was project financing and the challenges that may arise at different stages of an investment, including the specific requirements imposed by banks in project finance structures. It is often at the intersection of the interests of investors, contractors, and lenders that the greatest tensions emerge, subsequently affecting both the project schedule and budget.

Dispute management was another key point of discussion. We explored how to minimise the risk of disputes already at the contract drafting stage and which contractual mechanisms – such as cooling-off periods or obligations to continue performance despite a dispute – prove effective in practice rather than remaining merely “paper provisions”.

We also noted that arbitration can be an effective dispute resolution mechanism in renewable energy projects, particularly where foreign entities are involved, benefiting from the enforcement framework provided by the New York Convention.

This meeting once again confirmed that a carefully drafted EPC contract is far more than a formal requirement – it is one of the most important risk management tools throughout the lifecycle of a renewable energy project. In many cases, the precision and detail of contractual provisions ultimately determine the success of the investment.

A sincere thank you to all participants for their active involvement and the insightful discussion.

We look forward to seeing you at our next Business Coffee meeting! ☕