NextEra Energy: The Renewable Leader

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[00:03:16] - [First question] - Mark’s background and how he thinks about the energy markets 

[00:03:46] - A broad overview of the electricity market and how it’s structured

[00:05:22] - The value chain and production line of energy from facility to customer

[00:06:59] - What informs how much an energy company is allowed to earn

[00:09:16] - Unregulated versus regulated markets and the risks and benefits of both

[00:11:29] - How the retail electric market looks today and alternative production methods

[00:12:40] - NextEra’s business fundamentals and their current scope and scale

[00:14:45] - The two business arms of NextEra

[00:16:00] - Inputs and costs of the low cost regulated utility side of NextEra

[00:18:33] - NEER being the world’s largest generator of wind and solar

[00:19:43] - How they’re able to get contracts and how they work 

[00:20:03] - Comparison of revenue generated between their different branches

[00:21:26] - How the regulated and unregulated arms work together for NextEra vs its competitors

[00:22:30] - What their most important benchmark is and thoughts on gross margin and profits 

[00:24:33] - Natural cost of capital advantage given the growing focus on  ESG 

[00:25:33] - How COVID impacted the energy space, specifically in electricity 

[00:28:20] - Conventional energy production becoming more expensive in the near future 

[00:30:10] - How reliant NextEra is on government subsidies  

[00:31;20] - Where they spend all their revenue, the price of projects, and ROI

[00:33:01] - How they evaluate projects 

[00:34:19] - Structural differences in renewable  energy business models today

[00:36:18] - What could happen that could negatively impact NextEra’s growth

[00:38:22] - Considering risks when underwriting turbines 

[00:39:15] - Is nuclear power a potential tail risk?

[00:40:05] - Being forward-leaning when adopting digital technology and innovation

[00:41:23] - Lessons that can be learned from NextEra for builders and investors