Build-Transfer
In the standard build-transfer model, KGRA manages the design, construction and commissioning cycle and turns over ownership of the system to the client at the commercial operation date. All relevant warranties and performance guarantees transfer to the client at that time.
The customer may contract with KGRA and its affiliates to deliver service on an ongoing basis.
Build-Own-Operate
In the build-own-operate model, KGRA retains ownership of the power generation system and enters into a power purchase agreement with the customer, who agrees to purchase the power for a fixed duration at a negotiated price under a take-or-pay contract “PPA”. Along with the PPA, the customer and KGRA will execute a fuel supply agreement, which sets forth the quantity of heat to be delivered to KGRA’s system for the duration of the power purchase agreement.
In this instance, the customer is freed of any capital expenditure requirements and gets to enjoy the cost saving and environmental benefits of renewable energy.
KGRA maintains full responsibility to service the system under this business model.
