Multani: Higher power prices offset rising interest rates for clean energy projects
Saloni Multani · How will the downturn affect climate tech? · May 19, 2022 · at 33:01
Saloni Multani, partner at Galvanize Climate Solutions, analyzes the impact of rising interest rates on clean infrastructure financing alongside host Shail Khan.
0:00 / 0:20exact quote · 20.6s
720p mp4 · rendered on demand · StarZero watermark
“The reason why I think the impact won't be as big is as you think about the contracts that get struck, right? It's a function of your ultimate spread is a function of your offtake minus your input costs. And so, and one of your input costs is going to be cost of financing, but as your offtake costs are going up too, that helps to support the economics of the project.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Saloni Multani
Multani: FDIC reported $600B unrealized loss hole across US banks
“The stat I saw that the FDIC had put out was like a six hundred billion dollar hole in bank balance sheets across the US.”
Multani: SVB carried a $15B unrealized hole in held-to-maturity assets
“So you know there was a fifteen billion dollar hold in the book, but what they carried them at, yeah, what they carried them at was the fifteen billion higher.”
Multani: Depositors cannot realistically conduct deep risk due diligence on banks
“It's, look, again, it is far too much to ask for depositors to do this type of work on an institution they're going to leave their deposits with.”
Multani: SVB financed roughly 60% of US community solar projects
“It's like, 60% of community solar projects. Yeah, that was in that same article. I think it's sort of a, sort of like a remarkable stat, because it's such a huge, and again, I'm sure a lot of it is in this area, so some of it has to do with geography as well, …”
Multani: Climatetech financing will not quickly snap back post-SVB acquisition
“I think folks will step into the void, but I do think we need to recognize that it's not gonna, oh, SVB's fixed, we're just gonna snap back to what it used to look like, and cost of capital's gonna go back to what it used to be, you know, the ability to access…”