Jigar Shah Has $40 Billion. What Will He Do With It?

The US Department of Energy’s Loan Programs Office might be the most talked about -- and yet least understood -- part of the federal government’s efforts to support climate tech.  It has already invested more than $35 billion in everything from Tesla's first big factory to the first two nuclear reactors to begin construction in the U.S. in more than 30 years. It was crucial in getting the first multi-hundred-megawatt solar projects ever developed off the ground. Today it has more than $40 billion of available loan capacity to throw at the next wave of climate technologies to scale. And now, as of a couple months ago, it has Jigar Shah as the director. Previously, Jigar was the co-founder and president of Generate Capital. He also founded SunEdison. And, of course, he is the former co-host of our sister podcast The Energy Gang.  Jigar believes we have the technologies we need to put us on the right path toward decarbonization today. And further, that those technologies aren't as risky as the capital markets make them out to be. Therein lies the arbitrage opportunity Jigar has pursued his whole career. And now he's got $40 billion of federal dollars to test it in a whole new arena. In this episode, Shayle and Jigar break down the role of the Loan Programs Office and the specific financial products it offers. The backing of the federal government comes with the unique opportunities -- namely to move way faster on market opportunities than traditional debt markets can. But as Jigar explains, it comes with key limitations too. They also cover the technology sectors that Jigar sees opportunities in -- everything from green hydrogen to small modular nuclear to virtual power plants. And they highlight the stage of companies and types of projects the office might be uniquely suited to support. Plus, Jigar names the ideas he’s waiting to see (but that no one has pitched to him yet).  The Interchange is brought to you by Smarter Grid Solutions, a leading enterprise energy management software company. Find out how Smarter Grid Solutions’ software can give you real control over your clean energy assets. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Om Podcasten

Clean tech, green finance and energy innovation are the three lanes on the road to a successful global energy transition. At the intersection of these lanes is a place where ideas on finance, technology and policy are shared and debated. That intersection is Interchange Recharged.  Sylvia Leyva Martinez, principal analyst at Wood Mackenzie, invites visionaries, entrepreneurs, policy-makers and energy analysts to explore the newest developments in renewable technology, explain the ideas on global energy policy that could accelerate the energy transition, and identify new funding and financial models that could solve the biggest challenges we face on the way to net zero.  Sylvia and her guests bring you data and forecasts on clean technology, climate science, and offer predictions on the build out of utility-scale projects and the future of green finance. What impacts do the annual UN Conference of the Parties have on decarbonisation goals and climate change? What will COP30 bring? What’s happening in global EV adoption and development? What’s the forecast for solar energy, one of the major success stories of renewable energy in the last ten years? What does the data tell us about the future of hydrogen, of nuclear, or of low-carbon power?  These are examples of the insights and detailed analyses you can expect bi-weekly on Tuesdays at 7am ET.  If you like The Energy Transition Show, Catalyst with Shayle Kann, The Big Switch from Columbia University, Open Circuit with Stephen Lacey or The Green Blueprint, you’ll enjoy Interchange Recharged.  Want to get involved with the show? Reach out to podcasts@woodmac.com to: Bring Sylvia and Interchange Recharged to your event Be a guest on the show  Sponsor an episode Ask a question to Sylvia or one of our guests  Check out another leading clean tech global podcast by Wood Mackenzie, Energy Gang, at woodmac.com/podcasts/the-energy-gang Wood Mackenzie is the leading global data and analytics solutions provider for renewables, energy and natural resources. Learn more about Wood Mackenzie on the official website: https://www.woodmac.com/