Evaluate Renewable Investment Factors for Government Electricity Supply
Overview
This question evaluates strategic decision-making, commercial judgment, and risk-assessment competencies in the context of utility-scale renewable-energy investments, encompassing economic, regulatory, technical, and contract-related considerations.
Capital One
Jul 12, 2025, 6:59 PM
Data Scientist
Technical Screen
Behavioral & Leadership
76
0
Energy One: Renewables Investment Assessment
Context
You are the CEO of Energy One, an incumbent utility evaluating whether to invest in a new renewable-energy project. Candidate technologies include nuclear, solar, hydro, and corn-based (biofuel) power. The company primarily sells electricity to government buyers through public tenders rather than to retail consumers.
Questions
- What factors would you consider when evaluating whether Energy One should invest in a new renewable-energy project?
- How does selling primarily to government buyers (vs. retail customers) change your assessment and decision criteria?
Hints to Consider
- Market size and demand; competitive landscape
- Regulation, permits, interconnection, incentives
- Project economics (CapEx, OpEx, LCOE), financing, risk-adjusted returns
- Technology maturity, performance and supply-chain risks
- Grid integration, capacity/firmness, storage needs
- Bargaining power, counterparty risk, and contract terms
- Pricing mechanics and service requirements in public tenders (SLAs, penalties, local content)
Solution
Login required
Show