Currents Ep329: Building and Scaling Renewable Projects in a Shifting Policy Environment

Date: January 8, 2026
Host: Todd Alexander (A)
Guests: David Lillithorne (B), Tyler Hall (C) — Sunracer

Episode Overview

In this episode, Todd Alexander sits down with David Lillithorne (CEO) and Tyler Hall (General Counsel) of Sunracer, a rapidly scaling renewables developer in the US. The discussion explores the major challenges of building and operating renewable projects in today's ever-evolving regulatory, policy, and supply-chain landscape. Key topics include supply chain strategies, capital allocation, partnerships, the impact of shifting federal policies, and forecasts for renewable growth amid new market pressures like AI-driven demand.

Key Discussion Points and Insights

Starting a Renewables Developer: Motivations and Surprises

• David's Journey and Motivation

  • After a long career in energy (GE, Constellation, Carji), David was recruited by Cradle Capital to launch Sunracer as a challenge and opportunity to leverage his experience.
  • Quote:

    "For me, the challenge was to take all those years of experience in the energy sector and put a team together... and now own and operate projects. So I took it as a challenge and I was excited, glad that it turned out so well so far."
    — David Lillithorne [01:35]

• Biggest Surprise in Development

  • The importance of assembling a skilled, mission-driven team.
  • Creating something tangible (renewable energy on the grid) offers a deep sense of accomplishment.
  • Quote:

    "If it was easy, everybody would do it... finding those experienced people was difficult. But once you've had that on your team, it makes things easier."
    — David Lillithorne [02:27]

Legal and Deal Flow Challenges of Scaling Fast

• Tyler's Perspective Moving In-House
  • Volume and speed of high-value transactions are immense for such a small team.
  • Quote:

    "Sheer volume, speed, and the amount of complex deal flow... Less than 30 people, and in the last 18 months have negotiated, drafted, and finalized transactions with values in excess of a billion dollars."
    — Tyler Hall [03:47]

Teamwork and The 'One Team, One Fight' Ethos

• Building Partnerships and Alignment
  • Sunracer's Accelerant Program creates productive partnerships with EPCs, suppliers, operators, and financiers.
  • Emphasizes inclusive, collaborative approach to project delivery.
  • Quote:

    "One team, one fight... Team mentality, we're all here for the same mission."
    — David Lillithorne [05:19]

Navigating Shifting Policy Environment and Market Uncertainty

• Policy Impacts and Proactive Strategies

  • Proactive procurement (e.g., ordering transformers early) shielded Sunracer from recent regulatory and supply chain shocks.
  • Strategic focus on equipment 'grandfathering' to future-proof pipeline.
  • Quote:

    "We secured back in '23 transformers for our existing pipeline... by securing those transformers then allowed us... our pipeline [stayed] intact with minimal impact."
    — David Lillithorne [07:12]

• Execution Over Policy Reliance

  • Sunracer’s strategy is to control what they can and not rely on policy interventions.
  • Quote:

    "We're putting money where our mouth is. We're executing. When we say we're going to do something, we're doing it. These are not bragawatts."
    — Tyler Hall [08:50]

Capital Allocation and the IPP Model

• Why Own and Operate vs. Develop and Flip?

  • Pivoted from NTP sales to building operational assets, supported by experienced, patient investors (Cradle Capital, HBS).
  • Aiming for a 5–6 GW operational/pipeline vision.
  • Quote:

    "Based on our backing and our investors at Cradle Capital... we took those to COD, which we are now, and the next four projects we have under construction, we're taking those."
    — David Lillithorne [10:50]

• Investor Management and Flexibility

  • Sunracer navigates different investor risk appetites and aligns strategy accordingly.
  • Quote:

    "The great news about our investors, especially at Cradle Capital, they have done this before. They know the industry... you keep a steady hand and you keep moving forward."
    — David Lillithorne [13:07]

• Legal and Financial Engineering

  • Complex structures: equity, development financing, tax equity, corporate finance, creative instruments.
  • Quote:

    "The key... is that we have the right investors who understand our business and understand what we're doing... we're augmenting that with development capital... and when we get to commercial operations, then unlocking yet another level of lower cost of capital..."
    — Tyler Hall [14:22]

Market Opportunities & Competitive Landscape

• Outlook for Acquisitions and Partnerships

  • Targeting “develop and flip” NTP projects as acquisition/partnership opportunities.
  • Well-placed for near-term renewable deployment, especially compared to longer-lead fossil projects.
  • Quote:

    "The problem I'm seeing for others though... is supply chain, right? Last time I checked, solar doesn't need those turbines... The opportunity for renewables is now..."
    — David Lillithorne [16:30]

• AI/Data Center Demand and Project Site Strategy

  • Evaluating synergies between data center locations and renewable projects, with robust transmission analytics.
  • Need to distinguish real opportunities from “bragawatts.”
  • Quote:

    "The funny thing is, data centers have their locations they want. Then you have solar companies that look at their location. Marrying those up... is something that we're working towards..."
    — David Lillithorne [19:01]

• Evolving Contracting and Offtake Models

  • Power prices are rising, PV tech is improving, leading to faster deployment and more storage integration.
  • Quote:

    "Power prices go up notwithstanding federal policy... PV technology gets better... cost per watt continues to go down and we're simply faster to deploy to market..."
    — Tyler Hall [20:47]

Policy, Market Dynamics, and the Road Ahead

• Outlook for Policy and Transmission

  • Planning for volatility, not banking on federal solutions (e.g. FERC, transmission).

  • Focus on market fundamentals; local/state holistic planning will become more critical.

  • Quote:

    "We're planning for the worst and hoping for the best. And our business plans are not dependent upon federal policy, obviously. Tax credits, federal tax credits are crucial... We're simply building cheaper, better power plants..."
    — Tyler Hall [22:42]

  • Quote:

    "Every state is realizing... it's got to be a holistic look, state by state... If we build all the power plants we want and we have congestion, that's not going to solve the problem."
    — David Lillithorne [23:49]

Notable Quotes & Memorable Moments

• "If it was easy, everybody would do it... finding those experienced people was difficult." – David Lillithorne [02:27]
• "Sheer volume, speed, and the amount of complex deal flow... Less than 30 people... transactions... in excess of a billion dollars." – Tyler Hall [03:47]
• "One team, one fight... Team mentality, we're all here for the same mission." – David Lillithorne [05:19]
• "We're putting money where our mouth is. We're executing. When we say we're going to do something, we're doing it. These are not bragawatts." – Tyler Hall [08:50]
• "We have intentionally chosen a very different path... to remain lean, to build outside partnerships... and have the right governance and oversight." – Tyler Hall [14:22]
• "Marrying... data centers and renewables at the same location is something that we're working towards..." – David Lillithorne [19:01]
• "Planning for the worst, hoping for the best. Our business plans are not dependent upon federal policy... We're simply building cheaper, better power plants..." – Tyler Hall [22:42]
• "Every state is realizing... it's got to be a holistic look, state by state... If we build all the power plants we want and we have congestion, that's not going to solve the problem." – David Lillithorne [23:49]

Key Timestamps

• [01:35] David explains his motivation for entering renewable development
• [02:27] The biggest surprise: difficulty and importance of building a good team
• [03:47] Tyler on the pace and complexity of legal work at Sunracer
• [05:19] David introduces the Accelerant Program and the 'one team, one fight' philosophy
• [07:12] Impact of early procurement and supply chain foresight
• [08:50] Sunracer's commitment to execution and avoidance of "bragawatts"
• [10:50] The choice to pursue the IPP model and operational assets
• [13:07] Managing long-term investor expectations
• [14:22] Legal and capital structuring challenges
• [16:30] Market outlook and acquisition opportunities
• [19:01] Addressing AI/data center demand and synergy with renewables
• [20:47] Contracting trends and power prices
• [22:42] Tyler on market planning and policy reliance
• [23:49] David on the need for holistic state-level approaches to transmission and generation

Conclusion

This episode provides an insightful roadmap into what it takes to build and scale a renewable energy company amid rapid market and policy changes. Sunracer’s experience reinforces the importance of team building, creative partnerships, proactive risk management, flexible capital allocation, and adapting to new demand drivers like AI and data centers—all while minimizing reliance on policy miracles and focusing on clear-eyed execution.