Power Plant Search Fund

^Searchfunder member‌ I spent some time consulting in the power space (coal and gas generation) and recently met someone who owns several peaker plants. I enjoyed learning the space and think it would be fascinating to invest in and operate, but I haven't heard of anyone doing it as a searcher nor have I actually thought about the economics of buying a plant. But happy to speak further about my experiences if helpful.

Kevin, I';ve worked developing utility-scale solar plants for the last 6 years, so I can speak with regard to solar plants, but not others (however, I imagine there are significant similarities). I agree with what was said earlier. Solar, wind, and hydro plants likely have the most predictable rate of return because once constructed there are no raw inputs such as coal or natural gas that are subject to price fluctuations. However. as was mentioned earlier, power plants are as de-risked as possible. Given that most solar and wind farms are relatively new, almost all will have PPAs that likely have a non-assignment clause that gives the utility the right to decline a new buyer if the utility does not feel the buyer has the experience and financial position at least as solid as the seller had at the time the contract was entered. Therefore, although there could theoretically be some exceptions for small power plants with older power purchase agreements, I don't think power plants are ideal for a search funder.