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It's more than a "yeah I am interested" email, or hoping that their costs will be lower than the spot price of electricity. To your point its less than a money
by lbhdc 2y ago
It's more than a "yeah I am interested" email, or hoping that their costs will be lower than the spot price of electricity. To your point its less than a money down contract, but its not nothing.
The price of electricity has a high volatility, and having a guaranteed buyer at a given price can stabilize their business. Even if not guaranteed, it can make their business look more attractive to lenders/investors.
- creativeSlumber 2y agoThe point is it's not guaranteed at all, since it's a non binding letter of intent. I don't see any point other than to give something to calm nervous investors or to get more investors.