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Your client, HelioGrid, is a utility-scale developer considering six build options: Utility Solar, Onshore Wind, Geothermal, Offshore Wind, Rooftop Solar, and Battery Storage. The exhibit plots Levelized Cost of Energy (LCOE, $/MWh; lower is better) on the x-axis, IRR (%) on the y-axis, and dot size reflects project capacity (MW).
You may recommend exactly one project to pursue this cycle. Which project should HelioGrid prioritize, and what is the first action you would take to capture that opportunity?
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Your answer:
📋 Solution:
1) Eliminate by inspection (no math).
- Too expensive / low return: Rooftop Solar (≈$95/MWh, ~7% IRR), Offshore Wind (~$75/MWh, ~9% IRR).
- Different economics + high cost: Battery Storage (≈$90/MWh equivalent, ~12% IRR).
→ Shortlist: Utility Solar (30, 15%), Onshore Wind (34, 14%), Geothermal (42, 16%).
(Parentheses show LCOE $/MWh, IRR %.)
2) Pick the single best, using what matters.
- Goal is high IRR, low LCOE, and meaningful scale (dot size).
- Utility Solar is lowest cost by far (~$30/MWh), near-top IRR (~15%), and the largest buildable capacity (≈1,000 MW).
- Geothermal has the highest IRR (16%) but small scale (≈200 MW) and usually higher execution risk; Onshore Wind is solid but both higher LCOE and smaller than Utility Solar.
Recommendation (one project): Utility Solar — best risk-adjusted return at scale (low cost, strong IRR, biggest capacity).
First action to capture the opportunity:
- Have exec outreach secure a short-form LOI/term sheet with a right of first refusal.
- Offer an early-mover incentive (e.g., limited-time price or capacity reservation) to close fast.
