What factors should an alternate energy company consider when deciding whether to operate a project once it has been built?
Community Energy Inc. (CEI) had nearly completed plans to develop and operate Keystone, a five-megawatt (MW) solar plant in Pennsylvania. Then an offer to buy the project forced the company to decide whether it should stick with its original plan to build a portfolio of operating projects, or whether to simply sell Keystone. This case presents students with the financial model for the project, as well as background on CEI’s mission, and asks them to consider the pros and cons of developing and selling a solar energy project compared with building and operating it over time.
Case ID: 130305