Evaluate Renewable Investment Factors for Government Electricity Supply

Q: Evaluate Renewable Investment Factors for Government Electricity Supply

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.

Q: How do I approach Behavioral & Leadership interview questions?

Behavioral & Leadership questions require understanding of core concepts and practice. PracHub provides solutions with explanations to help you master behavioral & leadership interviews.

Question

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)

Evaluate Renewable Investment Factors for Government Electricity Supply

Energy One: Renewables Investment Assessment

Context

Questions

Hints to Consider

Solution

Comments (0)