FlickTalks: Banking on Solar
Guest: Alexander Kessaris | Date: December 16th, 2024
Welcome to FlickTalks, the spin-off from The FinanceFlick that brings you front-row seats to the world of sustainability’s biggest players. This edition features Alexander Kessaris, Renewable Energy Portfolio Analyst at the National Cooperative Bank (NCB) based in Arlington, VA. With a background spanning international studies and renewable energy finance, Alexander plays a pivotal role in ensuring capital flows to community-driven solar projects.
A Danish Gap Year and the Spark of Sustainability
Before college, Alexander took a gap year in Denmark, a country known for its leadership in renewable energy. Immersed in European politics, philosophy, and rock climbing – and near Vestas’ headquarters– his interest in sustainable energy began to take shape. Initially considering a diplomatic path, he found his stride on the financial side, where strategy and numbers align with real-world impact.
“Denmark really opened my eyes to how finance can support sustainable solutions,” he shared.
Balancing Solar Models and Due Diligence
At NCB, Alexander’s role involves a steady mix of financial modeling, thorough due diligence, and communication with borrowers. His primary focus? Community solar portfolios – often bundling several smaller projects into larger 20-40 MW portafolios across states like Colorado, Maine, and Minnesota. Alexander enjoys the precision of modeling debt service schedules, factoring in seasonal production trends to ensure clarity in repayment structures. This methodical approach allows community solar to access funding while managing risks effectively.
Navigating Challenges: Risks, Red Flags, and Relationships
Structuring renewable energy deals isn’t without its hurdles. For Alexander, financial stability is non-negotiable:
“If the numbers don’t add up – e.g. if liabilities are oversized – it’s not a project we can move forward with”
NCB focuses on partnerships with repeat borrowers, where mutual understanding and trust reduce uncertainty.
Competition inevitably increases as borrowers expand their portfolios. Large banks often step in at this stage, but Alexander notes the importance of maintaining strong relationships on portafolios in the 20 MW range – small yet essential pieces in the broader energy puzzle.
Opportunities and Trends: A Measured Approach to Storage
Battery energy storage remains a growing opportunity, though the financial sector has approached it cautiously.
“Banking tends to move carefully, being the second player often means avoiding the risk of getting burned that comes with going in first,” Alexander explains.
This reminds me of the metaphor that no one wants to be the first penguin, nor the last, to jump into the water.
Looking toward 2025, the renewable energy sector will continue evolving, influenced by market dynamics and policy shifts. While uncertainties remain, technologies like solar and wind are well-established as cost-effective solutions, supporting continued investment in sustainable energy.
His Latest Read
Alex is currently reading The New Map by Daniel Yergin, which examines the shift in energy markets toward renewables and the opportunities it presents. This contrasts with Yergin’s earlier work, The Prize, which Alex studied during his Oil & Power course in college. While The Prize highlighted oil’s dominance in geopolitics, The New Map offers a forward-looking take on renewables as a driving force in future markets.
Wrapping Up
From a gap year in Denmark to advancing renewable energy financing, Alex brings a steady, pragmatic approach to a complex sector. His work at NCB highlights the importance of structure, relationships, and thoughtful strategy in supporting community solar projects that power a more sustainable future.
Until next time,
FlickTalks
