{"blocks": [{"key": "e1ca076a", "text": "Scenario", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "c4a96497", "text": "Energy One is evaluating a move from fossil fuels to renewable power and must analyze financial feasibility, capacity limits and technology options.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "841a8c7f", "text": "Question", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "617873ef", "text": "What factors would you consider when evaluating Energy One's transition from fossil fuels to renewable power? 2. Given a fossil-fuel plant (8.8 M MWh/year capacity, $5 M monthly lease, $25 M yearly fixed cost, $20/MWh variable cost, $40/MWh revenue, $400 M initial investment), how many MWh are needed annually to recover 10 % of the initial investment? 2b. Does your calculated production volume make sense relative to the plant’s maximum capacity? Explain. 3. If government policy caps fossil-fuel generation at 5 M MWh/year, which alternative power sources should Energy One pursue and why? 3b. If no new power sources are added, what levers could keep profitability stable? 4a. Solar test plant: $12.5 M capex, 75 % sunny (150 k MWh), 25 % cloudy (50 k MWh), $0 variable cost, $40/MWh price. How many years to break even? 4b. Ethanol test plant: $2.5 M capex, 100 k MWh/year, $30/MWh variable cost, $40/MWh price. How many years to break even? 5. With no budget limit, which test plant would you recommend and why?", "type": "unordered-list-item", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "c86c2899", "text": "Hints", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "0a0c5dc3", "text": "State assumptions, apply break-even formulas, check capacity constraints, and articulate strategic trade-offs between cost, risk, and long-term profitability.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}], "entityMap": {}}