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But we have to take the recent events into account. And without going into massive detail on economics, I've always liked the really simple logic around renewables — they have zero variablecost (wind, sunshine, and underground heat are free). For obvious reasons, nuclear is being questioned again.
Second, because they can’t yet afford the high-margin top brands, they’re not all that attractive to incumbents worried about generating enough cash to cover their high fixed and variablecosts.
First, making significant amounts of your own power at zero variablecost is more than nice; it’s a hedge against volatility and smooths out expenses, which makes business planning easier. In addition, the story you tell customers can affect sales.
For example, in the case of a $100 million CVC fund, which can close five to 10 investments a year, these costs typically range from $1 to $2 million per startup — not including the administrative and variablecosts of the pilot itself.
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