Jigar Shah - Supporting Clean Energy Entrepreneurs
Download MP3Jigar Shah is the first person to be on Flanigan's Eco-Logic three times. Ted digs right into his current work at Multiplier, his new firm focused on advising clean energy startups to navigate financing and operational challenges. Jigar talks about "exits" and helping entrepreneurs determine the best time and way to sell their companies so that their innovations can scale.
The clean tech sector has never been more relevant, he notes. The solutions that entrepreneurs are creating are meeting needs of the country... but not the financial needs that these entrepreneurs deserve. Yes, they are doing well at decarbonizing the energy system, but not doing well in terms of financial rewards. Thus Multiplier is helping management teams get better compensation.
Ted asks about the impact that the current administration is having on clean tech. Is the sky falling? Good news: Jigar makes clear that stock market returns do not suggest so. In fact, he reports that stock values for clean tech have been "off the charts" for the last seven months. Trump's bad-mouthing clean tech seems to be helping the clean tech sector.
The conversation shifts to Jigar's service for the country. "It was terrifically rewarding for me," he reported, as he carried out a clear set of objectives to forge a functioning partnership between the public and private sectors that did not exist in Obama administration nor the first Trump administration. Instead our government has been subtly telling companies that are scaling up American innovations to go to China, India, Malaysia, and other countries. Now U.S. companies are scaling up and doing so in Texas and Tennessee and other states.
Jigar was at the helm of a "more muscular" Loan Programs Office (LPO). Its funding was ramped up from $40 billion to $400 billion. During Jigar's tenure, the LPO committed $108 billion.. and closed deals for $61 billion. Most of the $400 billion war chest is still there. Furthermore, Jigar states that the One Big Beautiful Bill promoted and passed by Trump is actually the largest largest climate bill ever. While it prematurely phased out solar and electric vehicle tax credits, it left in place production tax credits as well as tax credits for geothermal, nuclear, hydrogen, carbon capture, and batteries through 2034. It left the LPO with loan authority for advanced transmission projects, new nuclear, and new geothermal.
For all the hand-wringing which is real... Jigar reports that there is still potential for the U.S. government to be a partner with private sector to compete with China in clean tech. Loans made under Biden with lithium-ion for example, have promoted the highest quality ores... so much so that the U.S. can be net exporter by 2034. Furthermore, the Trump administration knows that if they continue to restrict and confuse LPO applicants that it will be impossible for the LPO to support the nuclear industry.
Jigar is crystal clear that the Trump administration has declared ware on the solar and wind industry. But we are now a nation that knows how to build solar and wind. It's what we have built for the past five years, not natural gas and certainly not coal for which the supply chain does not exist. He is calm and clear: "Cooler heads will prevail" and we will continue to meet the moment to power AI with renewables and to navigate the misinformation presented by the current administration.
Jigar strongly believes that the solar and wind industries need to be more proactive in creating a culture that makes clear that solar and wind is doing good for our country. The oil and gas industries have done a good job doing so, supporting Fourth of July parades, Boy Scout troops, etc. Now solar and wind need to do better, to move beyond the moniker of alternatives... and taking full responsibility for the power system using grid enhancing technologies paired with conventional baseload resources as well as batteries and small modular reactors.
The interview ends with a discussion of Jigar's most memorable moments in DC. He mentions Easter Egg hunts in the Rose Garden with his son, taking his wife to certain events. But most off all, he is proud of having convinced hundreds of colleagues to join the federal government and to getting them to believe that serving in the government is a noble cause. He got the nation's best and brightest to serve, helping to make sure that the United States not only invents, but also scales up, clean energy technologies domestically and with our allies.
The clean tech sector has never been more relevant, he notes. The solutions that entrepreneurs are creating are meeting needs of the country... but not the financial needs that these entrepreneurs deserve. Yes, they are doing well at decarbonizing the energy system, but not doing well in terms of financial rewards. Thus Multiplier is helping management teams get better compensation.
Ted asks about the impact that the current administration is having on clean tech. Is the sky falling? Good news: Jigar makes clear that stock market returns do not suggest so. In fact, he reports that stock values for clean tech have been "off the charts" for the last seven months. Trump's bad-mouthing clean tech seems to be helping the clean tech sector.
The conversation shifts to Jigar's service for the country. "It was terrifically rewarding for me," he reported, as he carried out a clear set of objectives to forge a functioning partnership between the public and private sectors that did not exist in Obama administration nor the first Trump administration. Instead our government has been subtly telling companies that are scaling up American innovations to go to China, India, Malaysia, and other countries. Now U.S. companies are scaling up and doing so in Texas and Tennessee and other states.
Jigar was at the helm of a "more muscular" Loan Programs Office (LPO). Its funding was ramped up from $40 billion to $400 billion. During Jigar's tenure, the LPO committed $108 billion.. and closed deals for $61 billion. Most of the $400 billion war chest is still there. Furthermore, Jigar states that the One Big Beautiful Bill promoted and passed by Trump is actually the largest largest climate bill ever. While it prematurely phased out solar and electric vehicle tax credits, it left in place production tax credits as well as tax credits for geothermal, nuclear, hydrogen, carbon capture, and batteries through 2034. It left the LPO with loan authority for advanced transmission projects, new nuclear, and new geothermal.
For all the hand-wringing which is real... Jigar reports that there is still potential for the U.S. government to be a partner with private sector to compete with China in clean tech. Loans made under Biden with lithium-ion for example, have promoted the highest quality ores... so much so that the U.S. can be net exporter by 2034. Furthermore, the Trump administration knows that if they continue to restrict and confuse LPO applicants that it will be impossible for the LPO to support the nuclear industry.
Jigar is crystal clear that the Trump administration has declared ware on the solar and wind industry. But we are now a nation that knows how to build solar and wind. It's what we have built for the past five years, not natural gas and certainly not coal for which the supply chain does not exist. He is calm and clear: "Cooler heads will prevail" and we will continue to meet the moment to power AI with renewables and to navigate the misinformation presented by the current administration.
Jigar strongly believes that the solar and wind industries need to be more proactive in creating a culture that makes clear that solar and wind is doing good for our country. The oil and gas industries have done a good job doing so, supporting Fourth of July parades, Boy Scout troops, etc. Now solar and wind need to do better, to move beyond the moniker of alternatives... and taking full responsibility for the power system using grid enhancing technologies paired with conventional baseload resources as well as batteries and small modular reactors.
The interview ends with a discussion of Jigar's most memorable moments in DC. He mentions Easter Egg hunts in the Rose Garden with his son, taking his wife to certain events. But most off all, he is proud of having convinced hundreds of colleagues to join the federal government and to getting them to believe that serving in the government is a noble cause. He got the nation's best and brightest to serve, helping to make sure that the United States not only invents, but also scales up, clean energy technologies domestically and with our allies.
