What is technical due diligence?
Technical due diligence (TDD) is an independent assessment of an energy or industrial asset's technical condition, performance and risks. It supports investment, acquisition, refinancing and portfolio decisions — from a small equity stake in a single project to large portfolios.
TDD is closely related to lender's technical advisory (LTA), but serves a different client: TDD typically supports equity investors and buyers, while LTA supports lenders through financing and construction. See our separate guide to Lender's Technical Advisory in Oman.
Typical TDD scope
- Project overview and technical description
- Energy resource and energy production review
- Technology review: modules, turbines, inverters, batteries
- Balance-of-system and electrical design review
- Environmental and permitting status
- Contracts review: EPC, O&M, warranties, grid connection
- Operational performance, availability and curtailment
- Technical inputs to the financial model
Red-flag reviews versus full TDD
When time is short, a red-flag review focuses only on material risks that could stop or reprice a transaction. A full TDD goes deeper, quantifying risks and providing inputs to valuation. VESS carried out a red-flag lender TDD for a casted grinding ball plant for Sohar International Bank.
Operating asset due diligence
For operating plants, historical performance data is the most valuable evidence. Performance ratio trends, availability, degradation and failure history reveal whether the asset is performing as expected and what capital will be needed in future. VESS completed independent TDD focused on asset performance for Amin Solar PV (125 MWp).
Industrial and non-renewable assets
TDD is not limited to renewables. VESS has provided technical risk assessment and transaction advisory for a bioethanol plant for Sohar International Bank — demonstrating the same independent methodology across industrial assets.
Frequently asked questions
What is the difference between TDD and LTA?
TDD supports investors and buyers with an independent technical assessment at a point in time. LTA supports lenders through financing close and construction monitoring until the loan is fully drawn.
How long does a technical due diligence take?
A red-flag review can take a few weeks; a full TDD for a utility-scale asset typically takes longer depending on data availability and scope.
Does VESS perform TDD for non-renewable assets?
Yes. VESS has performed technical risk assessments for industrial assets such as a bioethanol plant and a casted grinding ball plant.
