Alexandra Cooley

In other news, foxes think the henhouse doesn't need any guarding. The author's argument basically boils down to: 1) trust us and 2) merchant transmission development usually runs over budget or gets abandoned, resulting in higher costs to the customers. The first argument is categorically weak and problematic, but the second has some validity. There are a number of solutions to the second problem beyond right-of-first refusal, however, including higher security deposits (to prevent walking away) and various provisions that disallow cost escalation after bidding (or defined indexing provisions). I don't know how anyone can plausibly argue with a straight face that preventing competition is good for customers. https://lnkd.in/dZYExb26

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Early stage climate investing impacts of Trump 2.0 through the lens of an LLM observing our teams post election investment committee discussions - 1. IRA Implementation Challenges reflect deep concerns about program execution rather than just policy changes. The team noted that even without formal rollbacks, administrative cuts or friction could effectively neutralize IRA benefits. They discussed how bureaucratic slowdown and uncertainty around decision-making could make programs practically inaccessible even while technically remaining in place. This led them to pass on at least one investment opportunity that was heavily dependent on smooth IRA implementation, demonstrating how these concerns are actively shaping investment decisions. 2. The Municipal/State Level discussion focused on the potential for local action to provide some stability amid federal uncertainty. The team explored how in the past some cities and states led on climate initiatives and could continue pushing climate initiatives forward regardless of federal stance. This created an interesting tension between seeing local government as a source of stability while recognizing its resource limitations. 3. Market Psychology emerged as a crucial factor in their analysis. The team explored how regulatory uncertainty affects behavior throughout the market - from individual bureaucrats becoming more risk-averse in approvals to customers hesitating on purchasing decisions. They highlighted how market participants' fear of potential changes can freeze activity even before any actual policy shifts occur. This psychological impact appears to act as a force multiplier for regulatory uncertainty, potentially affecting markets faster and more severely than formal policy changes. 4. Unsubsidized Business Models. The team is continuing to focus on finding companies that can succeed primarily on economics rather than regulatory support. They discussed adjusting valuations to account for increased regulatory risk and showed particular interest in business models that could maintain growth even in adverse political environments.

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Goldman Sachs recently published a report on falling Lithium Ion battery prices. They estimate the "EV market could achieve cost parity, without subsidies, with internal combustion engine (ICE) vehicles around the middle of this decade on a total-cost-of-ownership basis." Despite the buzz around emerging technologies like solid-state and sodium-ion batteries, lithium-ion continues to dominate the energy storage landscape. According to GS' research here's why: 1. Established Supply Chain: Lithium-ion benefits from a mature, efficient supply chain built over decades. 2. Market Concentration: Just five companies control nearly 80% of the market share, each with 20+ years of industry experience. 3. R&D Advantage: These leaders have intensified their R&D spending in recent years, widening the gap with newcomers. 4. Manufacturing Efficiency: New entrants struggle to achieve the yield and cost structure of established players. 5. Skilled Labor Shortage: The industry faces challenges in finding experienced workers, favoring established companies. 6. Economic Pressures: A cyclical downturn is making it difficult for new technologies to gain a foothold. 7. Rapidly Falling Prices: The cost of lithium-ion batteries continues to decrease, further solidifying their market position. This price reduction is expected to accelerate EV adoption in the coming years. While innovations like solid-state batteries show promise, they face an uphill battle against the lithium-ion juggernaut. The entrenched players' decades of experience, economies of scale, and continued innovation create a formidable barrier to entry. Looking ahead, GS expects a strong resurgence in EV demand around 2026 as battery prices continue to fall, potentially reaching total cost of ownership parity with ICE vehicles in markets like the US. This trend is likely to further cement lithium-ion's position in the market. You can read the whole article here: https://lnkd.in/gtQnHsr5 #Lithium #BatteryTech #EVs #EnergyStorage #MarketTrends

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With daily headlines highlighting the accelerated pace of the energy transition, it is clear that we are in a new moment with shifting competitive dynamics and market realities. Here, Lisa Hansmann and I take stock of where we are in the transition, what has changed, and where we are going. And, we assess the implications of these changes on innovation and entrepreneurial communities, with a focus on the key challenges and their solutions that lie ahead in our path to energy abundance with the potential to decarbonize our economy, ensure energy and economic security and build prosperity. https://lnkd.in/e_Pp-7Ty  

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It is an exciting day for climate action. Sustainability Roundtable, Inc.’s Net Zero Consortium for Buyers (NZCB) just announced today that seven world-leading companies have signed an aggregated virtual power purchase agreement (VPPA) with Southern Company for renewable energy credits produced by the 180 MW Phase II portion of the Millers Branch Solar Facility in Haskell County, Texas. This long-term aggregated procurement enables the financing and development of the new 180 MW project owned by SPC. The project is expected to achieve commercial operation in Q2 of 2026 Cisco, Juniper Networks, Bio-Rad Laboratories, Cadence Design Systems, IDEXX, PTC, and a Fortune 100 healthcare company joined this agreement, which democratizes access to the commercial and environmental benefits of utility-scale renewable energy by making procurement accessible to a broader range of enterprises. This aggregation is one of the largest peer-buyer organized aggregations to date globally. Today's announcement reflects the fact that the NZCB has achieved 86% of its goal of causing a gigawatt of new renewable energy capacity before 2025. Reaching NZCB’s gigawatt goal would generate enough energy to meet the annual average electricity needs of more than 200,000 U.S. homes while helping mitigate commercial Scope 2 emissions across the business operations of corporate buyers. This transaction demonstrates how the NZCB offers a breakthrough model for commercial collaboration in causing utility-scale renewables, beginning in North America and Europe. 

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Cost-effective geothermal energy has the ability to fully transition and decarbonize our grids and industrial systems - in the near term! We believe the team and technology at XGS Energy will realize this vision and we couldn't be happier to be working with them on a geothermal-powered reality.

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#EnergizeNEXT is two weeks away! In the first half of 2024, the clean energy sector experienced unprecedented growth, with combined public and private investments totaling $147 billion in the U.S.—an increase of 30% over Q1 2023. Much of this growth has been spurred by supportive policies like the Inflation Reduction Act.  With the November elections looming, there's increasing speculation about what lies ahead for this expanding industry. To dissect these issues, I'll be at #EnergizeNEXT on September 18 with Alfred Johnson and Amanda Li, delving into the policy questions impacting climate tech. Want to join? Request an interest form here: https://lnkd.in/gCbN4kvN

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Last week Peak Energy announced its $55M oversubscribed series A, which Xora Innovation led, joined by lead seed investor Eclipse (Greg Reichow, Ryan Gibson), as well as TDK Ventures (Anil Achyuta), TechEnergy Ventures (Alejandro Solé), Doral Energy-Tech Ventures (Roee Furman), Lachy Groom, and Tishman Speyer (David Aron). Special thanks to 🌱🤝🌍 Anil Achyuta for the original introduction.   Peak is commercializing a new standard in grid-scale energy storage systems based on sodium-ion batteries. Peak’s market is benefiting from the twin tailwinds of renewables and AI, and the company has just the right founding team to scale at "ludicrous speed".   Landon Mossburg, Co-Founder and CEO, is one of the most phenomenal team builders we have had the privilege of backing. He brings deep experience in building battery gigafactories from his prior role as Chief Automation Officer of Northvolt, where he didn’t shy away from sleeping on factory floors for months in Northern Europe.   We have a special place in our hearts for entrepreneurs who have the grit to spend 10 years+ building deep tech startups from the foundational stage to commercialization. Cameron Dales, Co-Founder, President and Chief Commercial Officer, has done it not only once, but twice, at Symyx Technologies and Enovix (current market cap $2.65B).   Liam O'Connor O’Connor, Co-Founder and COO, previously scaled major portions of Tesla’s and Apple’s supply chains, flying over 500,000 miles a year when required. Liam has a deep understanding of what it takes to build resilient supply chains in hypergrowth mode, having previously scaled from <$5B to $40B in spend over a matter of a few years.   The climate tech sector is in need of more entrepreneurs who truly understand what building on a massive industrial scale means. We couldn’t be more excited that Landon, Cam and Liam have decided to apply their talents to enabling grid-scale energy storage.

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8,500 MWh will be the largest grid storage project by energy capacity in the country

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Data from the International Energy Agency (IEA) illustrates the current "readiness" of #ClimateTechs + their potential impact on carbon reduction. As shown, many techs are at an early stage of being able to have a material impact. Concerningly, some tech funds recently returned capital back to investors recently + closed their funds - citing inability to fund capital intensive techs, found in areas like ClimateTech. This in part may be contributing to the $2 trillion shortfall in ClimateTech, that Deloitte estimates. What this may mean for the future? - The migration of LPs to global, super VC funds within ClimateTech, given the large capital pools needed to fund tech development - Greater specialization from smaller funds, energizing more niche elements of the ClimateTech market - but also altering their / LP's risk profile - A greater role to be played by debt financing in funding growth entities at an earlier stage - impacting cashflow dynamics Will be an interesting space to watch moving forward. We at The Proptech Connection are constantly working with all parts of the Proptech ecosystem. From the leading LPs, funds, techs and adopters in market, providing an independent view. Reach out to us today to find out how we can help. #InvestorTrends #Strategy #Global Ivo van Breukelen Stuart Daun Kiki C. Ethan Ward

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On Thursday of this week, we will be hosting a kickoff call for the OpenEAC Alliance. We envision this group as a way for M&V professionals to contribute to the development of markets for demand-side energy resources. Whether we are talking about heat pumps, energy efficiency, battery dispatch, or daily load shifting, there are a lot of ways that demand-side energy resources can contribute to decarbonization goals. But it's critical that we are transparent in our methodologies so that the market can trust that claims around carbon reductions are backed by credible science. The OpenEAC Alliance will backstop WEATS, the system of record that WattCarbon has built for valuing the non-energy benefits of demand side energy resources, like carbon reductions. Each EAC that gets approved for WEATS will have a link to an open methodology approved by the OpenEAC Alliance. We've started with a list of ten methodologies, but will be looking at expanding those as the need arises. If you'd like to be part of this effort, please consider joining the kickoff call on Thursday. To stay up to date on the work of the OpenEAC Alliance, sign up at www.openeac.org. Register here: https://lnkd.in/gZiMFtJM

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I love stories like Samuel's about how he switched on to the need for the transition and found his pathway to having impact. Each of us has to find their own light switch and their own pathway. Prof Smil is such a troubling figure. Brilliant, charming, persuasive - yet he has used his skills to discourage us from working on what we all understand is a vast and daunting problem. All light switch, no pathway. For decades he propagated the Primary Energy Fallacy - the idea that renewable energy had to replace all "Primary Energy Demand", even though that is not a measure of demand at all: 2/3 of it is lost en route, mainly waste heat from burning coal, oil and gas. We need to provide energy services, we do not need to burn things. And he hasn't devoted 1% of his brilliance to explaining what we *should* do, rather than what we *shouldn't* do. OK, we get it, it's hard to change big systems fast. So where's the Smil plan? Even if we can't stop climate change dead in its tracks, we have to do the best we can. Every 0.1C matters. My light switch was seeing the damage being done to my beloved high mountain environments - glaciers disappearing, historic climbing routes becoming unusable because of rockfall as the permafrost melts. And my pathway was to help people understand in practice solutions - and not just renewables - that *could*, at least in theory, scale fast enough to make a difference. We now have enough manufacturing capacity to replace 5% of global electricity with solar every year. Soon to be 10%. If you put one grain of rice on the first square of the chess board, and two grains on the second square, you may not yet have enough to feed a Prof Smil, but we all know what happens next. So buckle up, listen to the Cleaning Up Podcast episode with Jenny, and even if you think you can't do much, you can. You could help someone else, early in their career, find their light switch and their pathway! And make sure you tell people your own light switch and pathway story. Narratives matter. https://lnkd.in/gTVyu4-3

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In early June 2024, I had the pleasure of participating in a fireside chat with Amy Rotman during the 121 Mining and Investor Summit. We talked about Nucleation Capital and our thesis revolving around the importance of nuclear energy as a tool in the energy transition. I described some of the new technologies being developed or refined to make nuclear systems that are able to serve the needs of a much larger customer base than the one served by monopoly electric utility companies that wanted huge central station power plants. Industrial heat and electricity production on a smaller scale are driving forces leading developers to configurations that allow higher operating temperatures at lower pressures. We also talked about the business model innovations being pursued, including the idea of companies that build, own and operate fleets of nuclear reactors while selling heat and power under long term power purchase agreements. https://lnkd.in/ecg-grGx

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At a time of such political uncertainty, an urgent reminder that climate-tech is a matter of national security and industrial development strategy. Without any reference to carbon or climate-change, the energy transition is a race the US and the west cannot afford to lose. Technology transitions fuel the economic and military power that shape geopolitics and the rise and fall of empires. Think: Caravel ship design and new navigation tools that underpinned Portuguese conquests of Africa and the Americas. The 1st industrial revolution fueling the rail roads, manufacturing that built the British empire. Then the US-lead second industrial revolution with oil, cars, and the economic boom associated with these. Ascendent after WWI, the US eclipsed Britain and Europe as in WWII on the back of its economic might and technology leadership. But the best analogy for the critical strategic, economic and technological importance of winning the clean energy race is microprocessor chips. In the 1950s through 70s, America’s ingenuity and capital markets seeded these technologies that changed everything, not just computers, the internet communications, but smart bombs, intelligence, satellites in the midst of the cold war. Japan and Korea’s economic miracles were tied directly to economic development policies focusing on these industries. And today, China’s claims on Taiwan are more about controlling TSMC’s chip manufacturing technology than national identity. Lets be clear. Clean energy technology is the next wave of technology that will shape this century and those that win this tech will control the economic and geopolitical order of the future. China saw this 20 years ago and has invested billions to ensure it wins the race. Today, China controls ~75% of global battery manufacturing capacity, 80 % of solar panel capacity, 58% of EVs manufactured, and 60% of the critical minerals that feed these industries. Beyond economic power, climate-technologies will also decide the future of hot and cold conflict. Think: grid resilient military bases powered by distributed energy at a time of cyber attacks on the grid.  Electric tactical vehicles with no noise signature. Battlefield batteries replacing highly exposed fuel supply chains. This isn’t speculation, this is straight from the US militaries climate-change strategy. China understands that clean energy is the inevitable future, and he who captures this prize wins the 21st century. They are cheaper, easier to deploy, with exponentially falling costs, and myriad use-case superiorities that make the obsolescence of fossil fuels inevitable. Today, 90% of all new generation capacity being added globally is renewable. We reached peak ICE vehicle in 2017. At a time when climate has become a partisan political issue, lets reframe this topic as the urgent matter of global security it is. The future of clean energy is not open to debate. But who wins this prize and, with it, the next century, is up to us.

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"Simply put, there is too much capital seeking too few opportunities, particularly at the seed stage. Multi-stage firms have eliminated pricing discipline at seed stage and the proliferation of seed firms has made the task of investing at this stage as competitive as it’s ever been, leading me to believe that indexed seed investing in today’s environment will produce poor returns. What does this mean for today’s environment? It’s never been more important to break away from median performance. While there is risk in breaking away from the pack, the risk (at least performance wise) of staying part of the herd is simply far worse. Median returns for the recent vintages are simply terrible. One could argue that funds are still in their j-curve phases, but I suspect this doesn’t explain the divergence we’re seeing between GOOD performers and GREAT performers. More than ever before, it’s clear to me that playing the same game as everyone else will not work, so fund managers should question whether they are really capable of being in the top 5% of whatever strategy they are employing. From a LP perspective, allocators should likely ask the same of their managers and consider whether allocating to indexed mega funds or indexing across too broad of a portfolio of managers is tenable in achieving their return targets." https://lnkd.in/g8GqHY-P

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Yesterday, our portfolio company, LineVision, announced the operationalization of LineVision's Dynamic Line Rating project with National Grid NY. This marks the single largest implementation of a #technology (#climatech) that can help operators determine in real time how much #power they can safely put through their lines leading to a more #efficient and more #reliable #grid - allowing #utilities to build a smarter grid; a grid that can welcome more #renewablepower sources faster! Congratulations to the people and teams at LineVision and National Grid! #decarbonization #gigacorn #electricity Kevin Kimsa Lilliana Paoletti Hudson Gilmer See the comments below for a link to the PR and launch video.

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"The electrical grid is being heavily strained by a rebounding economy and artificial intelligence use. That’s creating demand for grid plays, according to Calamos Investments portfolio manager Tony Tursich, who specializes in sustainable equities. Electrification, as well as the shift away from carbon-generated electricity, is a long-term growth trend, Tursich says. Supply must increase to meet electricity needs, meaning the grid must expand as well. But that’s happening too slowly; the electricity infrastructure is outdated. Tursich figures that electrical transmission grids must increase by about 1.2 million miles each year, even though expansion projects today often take five to 15 years to plan and complete. Estimated costs to upgrade the grid range from $600 billion to $800 billion a year until 2030. Tursich dubs himself a “diversified core quality investor” who seeks companies with good returns on capital, returns on equity, and high margins, and that are increasing revenue faster than their peers. He also looks for companies exposed to four long-term secular growth megatrends: 1.Electrification. 2.Decarbonization, including decarbonizing the electricity grid. 3.Digitalization and digital storage. 4.Automation, to streamline processes and reduce human error. “All these trends have been supercharged by AI,” Tursich says. Energy demand is increasing so quickly that nuclear energy, once a target of skepticism, is now in demand. For example, Three Mile Island, the nuclear power plant in Pennsylvania that was the site of a partial meltdown in 1979, is reopening to power Microsoft MSFT data centers, according to a statement from Constellation Energy CEG. “We need clean baseload energy to power” AI projects, Tursich says. These projects are “putting stress on the power system and stress on the grid, amplifying the growth and need for electrification,” he adds."

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For now, making money in utility scale energy storage is about speed to market, service, and taking advantage of demand irregularities and the inefficiencies inherent in renewable power generation. Smart investors are purchasing and deploying established battery technology rather than chasing novel materials or chemistries that have lengthy roads to commercial acceptance. Hopefully, everyone ultimately wins, but the best investments today involve derisked technology #practicalenergyinvesting #bridgeenergytechnology #energyefficiency

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