The Future Current

EP 5 — Encore's Chris Clement on Transitioning from Developer to IPP Model

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Chris Clement, now CFO & CIO, joined Encore Renewable Energy in 2022 with a mandate to transform the company from developer-EPC into a fully capitalized IPP, and his approach to capital partnerships reveals why some developers succeed in long-term ownership while others struggle. Rather than optimizing purely for cost of capital, Chris prioritized finding partners with genuine alignment — a decision that repeatedly proved essential.

 

Chris and Sean also talk about the operational realities that developers often underestimate when moving into asset ownership. Chris describes building robust data infrastructure connecting project management, accounting, and asset management systems while completely reframing his team's mindset. He explains why every state requires entering with humility despite strong track records elsewhere, how the feedback loop from operating assets back to engineering drives better design decisions, and why transactional efficiency through platform relationships delivers more value than over-engineered capital structures. 

 

Topics discussed:

  • The evolution from pure play developer to vertically integrated IPP model and what capabilities each phase along the way requires.
  • Why capital partner alignment beats cost optimization when building IPP platforms.
  • The timing of platform investments during 2020-22 market exuberance and how the IRA passage shifted investment thesis mid-process.
  • Building transactional efficiency through one-stop-shop project finance relationships rather than over-optimizing capital structures.
  • How documentation always remains imperfect regardless of sophistication, making partner selection based on collaborative disposition more critical than contractual minutiae.
  • The technology infrastructure required for IPP operations including integration between project management systems, accounting platforms, and data acquisition systems.
  • Why geographic expansion demands humility about knowledge transferability even with strong track records.
  • The OPEX sensitivity shift required when moving from developer to long-term owner, where operating costs that appear small relative to capex become critical at portfolio scale.
  • M&A consolidation dynamics in distributed generation with acquisition-focused IPPs moving upstream while developer-IPPs move downstream to capture operating asset deal flow.
  • Solar plus storage hybrid systems as essential strategy for post-IRA competitiveness once safe harbor inventory phases out and projects compete without tax credit advantages.
  • Measuring success beyond megawatts by generating political capital through community partnerships and demonstrating essential value to utilities and local stakeholders.
  • The transparency and vulnerability required when transitioning to the IPP model, building trust with capital partners who recognize challenges rather than demanding perfection.
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