Technical due diligence is an independent expert review of a renewable energy project's technical, contractual and performance risks, produced to the standard that lenders and investment committees require before funding. This guide explains what due diligence examines — from energy yield and design to contracts, permits and construction status — the difference between a red-flag and a full review, and the main risks it surfaces. It is derived from SgurrEnergy's technical due diligence scope.
What Due Diligence Examines
A technical due diligence review works systematically across the project.
Energy yield and revenue
Resource data, energy yield estimates (P50/P90) and the revenue assumptions they support.
Technology and design
Equipment selection, design quality, standards compliance and performance expectations.
Contracts and warranties
EPC, supply, O&M, offtake and warranty terms reviewed for liability gaps and bankability.
Permits and grid
Consents, land rights and grid connection status and conditions.
Construction and operations
Construction progress and quality, or operational performance and history for existing assets.
Red-Flag vs Full Due Diligence
The depth of review is matched to the decision and stage.
Red-flag review
A focused, early-stage scan to surface deal-breaking technical issues quickly before committing to a full process.
Full technical due diligence
A comprehensive, lender-grade review across all technical, contractual and performance areas, documented to investment-committee standard.
Key Risks Due Diligence Surfaces
Due diligence exists to surface the risks that threaten forecast returns.
- Underperformance against forecasts
- Hidden defects and serial failures
- Permit and grid-connection risk
- Contractual liability gaps
Related SgurrEnergy Services
Put This Into Practice on Your Project
This resource is a starting point, not a substitute for project-specific technical advice. SgurrEnergy provides independent advisory, due diligence and engineering support across the full renewable energy project lifecycle. Discuss how it applies to your wind, solar PV, BESS, hydro or hybrid project with our technical team.