Strategic EPC sourcing to improve CAPEX efficiency, cost certainty, and project delivery
// At a Glance
A leading commercial and industrial solar developer operating across multiple ASEAN and ANZ markets set out to improve project profitability and strengthen the scalability of its procurement model. As the company’s project pipeline grew, procurement became increasingly important not only as a cost lever, but also as a driver of delivery certainty, supplier collaboration, and faster time to revenue.
// Challenge
The client aimed to optimise capital expenditure across its renewable energy project portfolio while improving the predictability and efficiency of project delivery.
An initial CAPEX diagnostic identified the largest value opportunities across key project categories, including EPC, solar modules, inverters, cables, and mounting systems. EPC emerged as the most significant opportunity area due to its large share of overall project spend and its direct impact on delivery timelines.
EPC has become increasingly significant component of total project spend
Operating in a fragmented C&I solar market, the client faced a sourcing environment shaped by diverse site conditions, country-specific requirements, localized EPC supplier markets, and increasing pressure to deliver projects quickly.
These market dynamics often push developers toward project-by-project sourcing, with individual tenders run separately for each project. This approach can fragment demand, create pricing inconsistencies, limit supplier leverage, and extend sourcing cycles. Inverto supported the client in redesigning its EPC sourcing model to create a more structured, scalable, and commercially effective approach suited to the realities of a rapidly expanding regional project portfolio.
Graphic Source: BCG & Inverto Analysis
// Approach
As projects were sourced individually, demand was fragmented, which made it harder for the client to use the full scale of its project pipeline in supplier negotiations. Aggregating demand across projects created stronger commercial leverage and allowed suppliers to price more competitively.
Inverto applied a three-step approach to identify, structure, and deliver value.
The team conducted a CAPEX diagnostic across major project categories to identify savings opportunities and prioritize the highest-impact levers. This provided a transparent view of cost drivers, supplier dynamics, and addressable value potential.
The EPC sourcing model was transformed from a project-by-project approach into a more strategic portfolio-based model. Demand was bundled across projects, supplier requirements were standardized, and a pre-qualified EPC supplier panel was established to improve competitiveness and execution reliability.
Framework agreements and pre-agreed commercial mechanisms were introduced to increase cost predictability and reduce pricing variance across future projects. Standardized bills of quantities, clearer technical requirements, and consistent evaluation criteria created a more transparent and efficient go-to-market process.
Inverto supported the client through the sourcing and implementation process, from RFP preparation and supplier engagement to negotiations and partner selection. The approach focused not only on commercial savings, but also on improving supplier collaboration, delivery discipline, and long-term scalability.
A key learning from the project was that the largest value opportunities did not come from negotiating harder with suppliers, but from redesigning how demand was packaged, structured, and brought to market.
// Result
The redesigned sourcing model helped the client unlock material CAPEX savings while improving the reliability and scalability of its project delivery approach.
Across the diagnostic scope, Inverto identified significant savings potential in core project categories. Within EPC, the new sourcing model delivered double-digit savings against the addressable baseline while also improving pricing transparency and reducing commercial variability.
The client also secured greater cost certainty for future projects through pre-agreed commercial terms with selected strategic EPC partners. This improved budgeting confidence and reduced exposure to inconsistent project-by-project pricing.
The new model also helped shorten tender cycles, narrow pricing variance, and establish clearer performance expectations across EPC partners through consistent SLAs and KPIs. In addition, supplier-led specification and design optimization created further opportunities for value beyond traditional price negotiation.
By moving from fragmented project-based sourcing to a strategic, portfolio-based EPC model, the client leveraged procurement as a competitive advantage. The project demonstrated how renewable energy developers can reduce CAPEX, improve cost certainty, accelerate delivery, and bring revenue-generating assets online faster through a more structured approach to supplier engagement.
Stefan Benett
Managing Director
Amandeep Singh
Principal
