Should East Light Partners, a public benefit company with a mission to support renewable energy, embark on a utility-scale solar power project to be constructed in Stillwater, New York?
Wendy De Wolf and Jamie Fordyce founded East Light Partners, a mission-driven public benefit corporation, in 2016 and launched East Light Capital Fund I, an investment fund for the company’s solar power assets, one year later. In 2017, the partners were considering a proposal for the construction of a utility –scale 20-megawatt solar facility in the town of Stillwater, New York. In line with New York’s Reforming the Energy Vision strategy, which set ambitious targets for New York’s transition to renewable energy sources by 2030, the facility would sell energy to the New York state energy grid and would sell renewable energy certificates (RECs) to the state of New York. In determining whether East Light should proceed with the project, students will be asked to calculate the potential revenue that the project might generate and weigh it against the up-front construction costs, the ongoing operating costs, and the decommissioning and liquidation costs to be incurred after the 20-year life the company would be assuming. Students will also be asked to assess the terminal value of the project once the project has concluded.
Case ID: 220301