Thanks for sharing this, Ayub - really compelling thesis. Out of curiosity, could you do a deeper dive on barriers that you’ve seen holding investors back from embracing this more multidisciplinary, layered model that uses energy intelligence becomes a core idea?
Is it more of a capability gap like you hinted at ( lack of internal energy market fluency ), or are there structural frictions in the market - like limited performance history, underwriting standards, or uncertainty around credit worthniess - that make it hard to assess risk and commit confidently to these kinds of projects?
Would love to hear how you’re seeing this develop from your pov in the ecosystem.
Great question, the primary barriers are a significant capability gap and entrenched structural frictions in the market.
Fundamentally, many investors and operators view energy largely as a fixed cost rather than a potential revenue stream. This means they often don't properly evaluate, underwrite, or even manage the complex interplay of real-time energy prices, grid services, and flexible IT loads.
Compounding this capability gap are structural issues like the lack of proven, long-term performance history for these hybrid models, making risk-averse institutional investors hesitant. Current underwriting standards and valuation frameworks simply aren't designed to account for new revenue streams derived from active energy market participation, leading to a "valuation disconnect" where the true potential of these assets isn't recognized.
This creates a "chicken and egg" problem: without established performance, it's hard to attract capital, and without capital, it's hard to build that performance history, leaving a compelling, high-return opportunity largely untapped by the broader market.
Thanks for sharing this, Ayub - really compelling thesis. Out of curiosity, could you do a deeper dive on barriers that you’ve seen holding investors back from embracing this more multidisciplinary, layered model that uses energy intelligence becomes a core idea?
Is it more of a capability gap like you hinted at ( lack of internal energy market fluency ), or are there structural frictions in the market - like limited performance history, underwriting standards, or uncertainty around credit worthniess - that make it hard to assess risk and commit confidently to these kinds of projects?
Would love to hear how you’re seeing this develop from your pov in the ecosystem.
Great question, the primary barriers are a significant capability gap and entrenched structural frictions in the market.
Fundamentally, many investors and operators view energy largely as a fixed cost rather than a potential revenue stream. This means they often don't properly evaluate, underwrite, or even manage the complex interplay of real-time energy prices, grid services, and flexible IT loads.
Compounding this capability gap are structural issues like the lack of proven, long-term performance history for these hybrid models, making risk-averse institutional investors hesitant. Current underwriting standards and valuation frameworks simply aren't designed to account for new revenue streams derived from active energy market participation, leading to a "valuation disconnect" where the true potential of these assets isn't recognized.
This creates a "chicken and egg" problem: without established performance, it's hard to attract capital, and without capital, it's hard to build that performance history, leaving a compelling, high-return opportunity largely untapped by the broader market.