Episode Transcript
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(00:00):
And this is Scaling Clean, the podcast for clean economy CE OS
investors and the people who advise them.
I'm your host, Melissa Baldwin. Each show we bring you usable
insights from tested leaders that you can apply to the
business of running your business.
(00:20):
Welcome back clean techers. My guest today is Gareth Brown.
He's the CEO and Co founder of Clear Renewables, a risk
intelligence provider that helpsbanks and investors understand
and manage wind, solar and storage portfolios.
Clear was founded in Vancouver in 2017 and has grown from six
employees and 500 megawatts of assets to a team of more than
(00:42):
100 experts managing over 200 gigawatts of renewable and
storage data. Claire has raised more than 50
million in equity, debt and grants and built a company that
is helps investors and operatorsDr. returns from their wind,
solar and battery assets. Gareth, thank you so much for
joining me on the show today. It's great to be here.
(01:05):
OK, so we always start the show with a career journey and your
mentors. So I want to dive into that.
But first I want to give you a chance to tell our listeners
about Clear Renewables. What do you do at Clear
Renewables? Yes, so clear is a renewable AI
platform. We we basically connect into
wind, solar and storage assets all over the world and take the
(01:27):
data off them and give them intelligence back or on how they
can improve the financial returns and minimize risk on
those assets. And So what are the main
questions that you're hearing from your customers?
And I'm thinking specifically about Wall Street.
That's one of the things I understand about you is that
some of your customers are banksand Wall Street.
So what are those customers asking you about their projects?
(01:51):
Do you notice any trends from that customer type?
Yeah. I mean we, you know, we, we work
for the major investment funds who are investing into this
asset class. And what we see is renewables is
unique. We see that it's the only power
source where we don't know what the resource is going into the
asset. So when you have a nuclear
plant, a coal plant or a hydro plant, you have a pipe with a
(02:12):
controlled intakes, you know howmuch energy is going through
that pipe and you know how much electricity is, is being
produced on the back end. So it's really easy to tell if
that turbine is underperforming Here in the wind space.
We have a coffee cup anemometer behind 100 meter blade on 100m
tower, which is which is on hundreds of turbines all spread
out on the hillside or on the ocean.
(02:35):
And similar for SUS Solar as well where you have a very
distributed asset that when the asset underperforms on those
investment assumptions there, itcan be quite hard to tell why.
So is it because of the wind or is it underperforming technology
there? So what we see from investors is
they want really great reporting.
They want to understand what hashappened at at that farm, how
(02:58):
does that compare to its peers and then what will happen into
the future. So what what we've built with
that AI platform is the ability to explain what has happened
with that asset benchmark and then give forward-looking
projections on yields on major component exchanges there, so
folks have the best information for their investment decisions.
(03:21):
I think that's so interesting. You make a really great point
about the known knowns in traditional fuels, like you know
how much fuel you're putting in.You can know what you should
expect getting out both with renewables, which you know, one
of the benefits of renewables isthat the fuel is free.
One of the downsides I'm hearingis that it's really hard to
measure that fuel because it's variable.
(03:44):
And so it sounds like you're helping your clients get a hold
of that. Exactly that like a, once you've
got great reporting there, we, we, we can really understand
your, your investment. It's really easy to and then you
know squeeze out as much return out of that asset there, whether
it's revenue, OpEx or CapEx thatyou're optimizing on the on the
(04:04):
asset. So a great example recently was
we had a customer who onboarded a large portfolio to a platform
and within three months that they were able to reduce their
bonus payments that they were paying their service provider
there because they were able to to get a really clearview of
what was going on asset there. Are you able to determine the
(04:26):
source of a problem for why an asset is underperforming?
Yes, I mean it is constrained bythe quality of the data cut
coming off, but that's exactly what what our AI does.
It's really looking to connect into these assets there and
understand if it's a mechanical issue, a technology issue there
or a fundamental issue with withwith the resource.
(04:47):
So, so that folks can basically compete with confidence knowing
what to do next. So we had a battery asset
recently for for, for example, there, which was trading on the
M grid and it was its inability to basically trade at the right
times. It was having huge impact on the
(05:08):
financial returns there. So just putting great AI in
place, putting great intelligence there allows us to
make sure that those financial returns are optimized.
That's so cool. So I think I heard you say
you're kind of looking at three things.
You're looking at the technology, you're looking at
the software and and you're looking at what was the other
part. Yeah.
(05:28):
So it's, it's, it's the, the challenge is breaking apart the
resource from the performance ofthe of the technology.
So most of these, a lot of theseassets are underperforming in
the space and that's a big frustration for the investors,
right. They've placed this large amount
of capital billions of dollars into these portfolios and then
the asset doesn't quite do what what it says on the M10 and then
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understanding why and is there and I think that that they can
do do about that. So they am getting a bigger bang
for their buck they're as they go.
So it's looking at the technology, separating it from
the resource, but then knowing where to look in the in the 1st
place and then and then knowing what to do where when you find
that issue there. And it's really where AI has
(06:13):
been so exciting. There is the ability to scale
that. And most of these projects that
you're looking at, are they pretty big projects like utility
scale? Exactly.
Yeah. So we're working on small
rooftop projects all the way to the largest offshore wind farms
and we're working on assets at the multi GW scale at this
point. OK.
(06:34):
We're going to shift now to justlearn about your background.
Garrett, you are the CEO of a growing company.
How did you get here? How did you become the Ceoi?
Finished university at Edinburgh.
I'm a bit of a nerd. I did my undergrad in a math so
I ended up working for a companyout of Scotland who was about 20
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staff. I was in the right place at the
right time because there wasn't a huge amount of expertise in
our industry. Like always say if if you're a
turbine tech 2 and day, you should be AVP of operations in
three years time because they'rejust the industry just so much
bigger to to and day that that than it was a year ago or so on,
(07:18):
on on that point. So what I was able to do was
work in India, China, Sri Lanka from Glasgow, but then come out
to North America and set up their operation here in
Vancouver. So I have this great experience
of going all around the world and we're working on projects
realizing that folks didn't knowhow to run these assets all that
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well in our industry. So doing that, it just gave me a
great experience, but also seeing the pain points in the
market. So in 2016, I quit my job and
wanted to take advantage of low cost and cloud based computing
to basically skip impact. And that's where like my
experience of working on projects all over the world,
(08:06):
seeing this pain points of assets just really
underperforming in our in industry, wanting to have my
impact on climate change and being able to to scale that.
That's so cool. And what was the company that
you're working at before you decided to go out on your own?
Yeah. So it was a startup at a Glasgow
(08:27):
called Skirt Energy. It was a, it was a consulting
engineering firm. We worked on on the 1st offshore
wind farms, we worked on on the 1st, some of the the first
largest projects all over the the world.
So we're working for the insurers, the equity investors
and lenders. So you've been working from day
one for the same customer type that you're working for now?
(08:48):
Exactly, and it's just that it'shaving a decade of working with
them and understanding the problems there is giving us a
real leg up of of being able to scale a start up there.
So that was that was a big pointof being able to to and be
successful with clear and scale the the in business.
That makes sense. Can you recall any memorable
(09:10):
mentors who influenced you through your career journey?
And if So, what lesson did they teach you that you think other
people should know about? Yeah, I think it's really
important from a confidence perspective.
I would say that, you know, I had two former bosses, Ian Irvin
and Steve McDonald and two Glaswegians who taught me to
(09:32):
basically say yes to you'll figure it out.
We were working on so many global first projects there.
There wasn't another option there.
It's being confident of just taking on that work, backing
yourself to work it out and go from there.
So I would say that they were two folks who were too big
impacts. They are on my career.
Gareth, I'll tell you that advice that you just gave on Say
(09:55):
Yes and Figure it Out, that's coming in a really interesting
time in in our firm, so it's really meaningful.
Thank you. Another question I like to ask
my guest is if you could go backto 2017 when you started the
company, knowing what you know now, what advice would you give
to your younger self? Yeah, I think it's focus on go
(10:18):
to market. That would be my biggest area of
learnings. If you like, like you can have
the best product in the world, you can have the best that value
point. But that ability to scale from
founder LED sales to a system LED sales, if you like, of being
able to scale the kind of sales and the marketing.
It's great having me going in and speaking to, to A, to, to a
(10:39):
customer. You know, you can talk, talk
about 20-30 different points of that value there.
But how, how does that allow youto hire a sales team, a
marketing team to be able to learn that quickly?
They don't have 10 years to figure it out on that point and
scale up the, the, the good of marketing and engine there.
So if I was going back to 2017, it's really learning about
(11:02):
what's scalable, not really froma product perspective on that
point, but from a good market perspective.
Quite often with the market as well is ready for certain things
like we're going in and and selling, I'd say a few years
ago, we'll be selling, you know,how to run when customers can't,
can't even walk yet. So we'd go in with
forward-looking projections and benchmarking and all this
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intelligence that they can act on when, when the reality is
that most of your customers are still figuring out how to
accrual that they just want to get their dead data in one
place. They want to have good solid
reporting there. So talking about all the
optimizations and upside, it's just like, well, that's great,
but I've got to did deal with the basics first.
I think that for me on, on that point from a good market
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perspective, it's that driving simplicity and driving a
consistent message, which is overwhelming the, the team on,
on what to do. So, you know, quite often you,
your, your success can be what holds you back.
We'll have some massive sales. We're going to push through
through on those points because we're able to put, you know,
founder LED sales on, on those points.
(12:05):
But but being able to bring it back, how do you scale this?
How do you repeat this 100 * 1000 times?
You can really get the impact and I want to come back to our
mission of minimizing humankind's impact on the
climate. Sounds very great, grandiose
there, but we want to be on every Windows solar farm on the
planet and be able to achieve that.
So people have got great investigate reporting, they've
(12:28):
got great oversight performance monitoring there and also a
great reconciliation with budgets and contractual
availability there. So all those kind of workflows
fit in, fit into just great understanding of the assets
there. And to do that, we have to
simplify our messaging at times.And that's been a big learning
point for me as ACEO, as a leader.
(12:51):
You hit on a few things there and actually you lead me
naturally to one of my other questions.
You talked about founder LED sales.
That is something I'm going to jump ahead in my question list
here because you touched on it and I want to learn more.
So it sounds like the answer is going to be yes to this
question. But tell me more, as the CEO,
are you involved in the sales process and in what's your role
(13:14):
in that process? What do you know?
What are you noticing from your customers and your
conversations? Yeah, sure.
I mean, at the end of the day, I'm the chief executive, but you
know, you're the chief sales perperson, you're the chief of
customer success and everything else.
But the biggest thing that I have to do in the lead of those
roles is built teams. It's it's worked it together on
the point you got to hire great people, which is probably the
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the most important thing for anyCEO as you go forward there.
But then to like everyone you hire, you need to empower them,
but you also need to kind of make sure that they've got the
tool set there to succeed, the background knowledge and the
frameworks there. So I would say that, yeah, look,
I'm obviously still heavily involved with our sales, our
fundraising and everything else here at Clear.
(13:58):
But the big focus for me is how do you build that sales and go
to market engine so we can really scale the business there
as we go? When you touched on something
earlier too that I want to ask more about, and that's
fundraising. So we work with tons of
companies who need to raise, youknow, Series B, Series C, what
is whatever it is. And it's a challenging
(14:20):
fundraising environment right now for renewables.
So you've had successful financing rounds.
What would you what advice wouldyou give to other companies that
are looking to do a fundraise and how they can get attention
from investors? You know, what do you think led
to the traction that you got? Was there any aha moment or
(14:41):
something that really clicked? Yeah.
I mean, when I set up the company back in 2017 there, we
kind of bootstrapped through with friends and family
investors there really on, but went out to kind of outside the
investments after that first year, quickly realized it was
about traction in the market. Now this obviously depends on
what your startup's doing, if it's going to MD tech, if
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they're doing and software, you have different forms of traction
there. But ultimately the market
speaks. I think there's 2 levels that
look at there of like 1 is that founder LED sales there.
All those really sales you can go out and make.
You can prove that that pain point is there and and it's
great getting big logos on board, but then the ability to
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go from a pilot to a fleet wide sale and that and that
repeatable says sales engine is the second proof point there
when you start getting beyond Series B.
So I come back to to the recommendedation before of go to
market, even though renewables certainly are based here in
Canada is having a really hard time South of the border right
now with the current administration there.
(15:48):
The bottom line is, is renewables is 1.
It's the cheapest form of electricity.
It's fast to deploy solar last year where there was more solar
built globally than every other power source combined.
The the question is how quickly will it be to deployed now to
displace the fossil fuels on that point.
So I don't think investors are going to stay away from
(16:12):
renewables on that point short this short term investment
issues with with major projects there.
But I but I think for renewable energy firms as a whole and both
globally as well, there's huge tailwinds behind those
companies. You actually set me up perfectly
for the next question, which is on the geography.
So you're based in Canada, you have operation spanning North
(16:35):
and South America and Europe. Have you noticed, first of all,
have you noticed any changes in the market in the USA under the
Trump administration? And do you think that could have
ripple effects globally? America is, you know, it's, it's
the force of innovation in the, in the, in the Western world.
We, we, we need the Americans onboard.
(16:56):
We're working hard at renewablesand investing in innovation
there. So what we see is obviously,
look, there's been a huge amountof layoffs set for the borders,
particularly on the development side.
We, we see, see some of similar in offshore wind in Europe with
some of the uncertainty there. But the bottom line is, I say
like your renewables is, it's got the data sets, sets,
(17:18):
centres. I think then the amount of
electricity that AI is going to drive use particularly in the
Western world, particularly in the US means that the tailwinds
are there on that point. So we haven't seen major impact
on our business because we're primarily focused on the
operational side, but obviously it causes investors to pause.
(17:40):
It causes investment from companies on IT infrastructure
to take a second look. But the missed opportunity of
not investing in Clear or similar platforms is a huge.
So we're seeing the sales in Q4 for us should be our biggest
quarter ever, so. Wow.
Do you think that's because companies understand how
(18:05):
important it is to make sure that the assets that we do have
are performing at their best andthat they're not
underperforming? Yeah.
I think people are having different challenges, right.
I mean, a few years ago we talked about 100 megawatts being
a big portfolio that then it wasa GW, now it's 10s of gigawatts
and you're dealing with multipletechnologies, wind, solar best.
(18:28):
Before it was very skewed towards wind, but by itself.
But anyone who owns a wind farm probably owns a solar farm and
probably owns a bad battery as well.
So you've got all these multipletech and technologies, you've
then got a report and operate onthat.
You've got a problem that you know, there just aren't enough
technicians in the market. There's a dearth of, of, of
expertise to actually operate the end of these plants.
(18:50):
So you can obviously hire and train to fill that hole.
You can also invest in technology.
And if you want to be tech enabled, getting a platform like
clear clearing in place is really really key.
Interesting. Well, I want to ask you now
about my, my favorite topic, which is marketing PR and and
AI, which is a new thing, but it's, you know, the basis of
(19:13):
your program is AI, but I want to talk about challenges.
So what for you Gareth, is the toughest marketing challenge
that you're facing right now at?The end of the day, AI, machine
learning, LLM, whatever the, the, the words being thrown
around, it all comes back to business value.
(19:35):
And you need to think hammer, chisel, screwdriver for all
these tools like it's the right tool for the right process there
on the point. It's really exciting as AI is so
powerful in so many areas there,but you need, you need to bring
it back to that return on investment there.
I think for us what our platformhas got so much potential in
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what it does, it's just bringingit back to kind of what is the
immediate pain points of our customers are really
effectively. So we're just launching our kind
of new marketing campaign through Q4 to basically build.
On the success that we've seen from a sales perspective there,
but making sure that we communicate really effectively
with the market as we go forward.
(20:17):
We answered my next question, which is at what point did you
invest in communications or PRI mean?
I've, I can tell you I've workedwith Tiger Comms, work with
nearly 200 companies and a lot of them are engineer driven
startups that have grown over time.
A lot of times we hear from companies who you know, they
didn't invest in marketing rightaway.
(20:38):
They were able to grow through word of mouth.
So what was your process like? It cleared.
At what point did you invest in communications or bring on
somebody full time to be thinking about marketing and
comms? Marketing is cute, right?
You want to get that top of funnel coming in on that point.
You want to test not just what is one person's problem, but is
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everyone that was an industry wide program on that point and
test how well that key communication works.
So we've always like we don't, we bought on our first marketing
and resource on what I say in 2019 around then individuals.
But the real ramp up came in May2021 where we we were able to
demonstrate in our Series B thatwe could get major logos signed
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on board. What we weren't then able to do
was do the fleet wide sales on that point.
So we invested in the sales and marketing to push out on that
point. We essentially got some of our
assumptions wrong. We basically went out and spent
a lot from our Series B. We kept growing the, the, the
business throughout, but we scaled up the the company and
had to downsize our spend on that point.
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So we would be in a stable position where we're like today
we're cash flow part now we've got more money cut coming in
than going out. So what I would say the
messaging on the marketing side was not being being really
crystal clear on the sales engine perspective of those
metrics. That was really adopting signals
there that look, if I put a dollar and I'm going to get $3
(22:03):
back or $10 back on that point. Got it.
That's interesting to see you. You had a slow start and you had
a surge and then you had to scale back and now you're kind
of funding that equilibrium. That's so interesting.
It is for sure. I just, I think like the big
come back to that go to market, really understanding that that
buying process. If your customers that selling,
(22:23):
you know, that ideal customer profile and then that expansion
play, which I think and perhaps get missed earlier on when
you're making those first sales,you're like, great, this
person's buying, they're going to buy more from me.
But getting stuck at that pilot stage is making sure that you've
got that expansion process really well understood the
decision makers, that the value props, the communication, the
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marketing around that and the and the engagement piece.
So you can drive from there. And I think that that that
marketing piece, you know, you need to invest in it in day one,
but to really scale it and to build that larger engine on top,
it's it's having that repeatablewhole process which has got the
data and the narrative always you want to be data-driven by
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say narrative without data is fiction.
And but data by itself needs to have those tests and assumption
and that narrative that you're putting on top.
I love that. I love what you just said.
It's so funny that you made thatpoint.
I was just listening to a podcast the other morning where
there were two different podcasthosts and they, one of them is
(23:26):
very data-driven guy and anotherone he just has a different
decision making factor. But we were big believers at
Tiger Calm that human beings areessentially we are emotional
creatures 1st and then rational being 2nd.
And use a lot of times we make decisions based on our emotions
and then we use facts to base, you know, to back up what we're
(23:48):
thinking. All right, we're going to shift
gears now. We're going to talk about
learning and development. So when you think about your
professional career and you think about your education, is
there any training or book or podcast or anything memorable
from your past that you feel really influenced who you are
today or kind of drives your ethos?
(24:10):
Yeah, I mean, I remember my thatthe, you know, who even took me
aside and said, look, you need to do some leadership courses.
So he sent me to to to UBC here on the point.
I remember sitting in the rooms,it's great to be with leaders,
right, of just hearing their perspective what what was going
on. So that was it was good for me.
(24:32):
Certainly it can be a bit candidand blunt sometimes and, and
softening those skills a little bit more is key.
So that was a good one on that point.
And then on on top of that, you know, it's taking the time out
to kind of work on, on yourself.I mean, one of the biggest
things I've realized I've got I got it into my 40s is, you know,
I can't quite work in quite the same way that I used to, you
(24:54):
know, flying all around, workingall hours, eating whatever I
like, but realizing that your physical shape has a huge impact
on your on your mental shape. So I'd say that the biggest
learning there is has been not just about, you know, your
professional wise on training onwhat to do as you know as a
leader there, but it's just spending time on eating right on
(25:17):
exercise because you're going tobe able to be so much more
productive there on that point of doing the smart things and
not just the most hours. You still have to work bloody
hard, but but being smart aroundit and then being effective
because it isn't really time isn't the constraint.
It is still, you know, the most precious, the second most
precious resource, but the most precious is energy.
(25:41):
It's like, you know, do you havethe energy to do the next hard
task, to do the next hard thing and get through through them.
So timing when you're working onthe most important things and
drive driving that through is critical.
Every CEO who I've talked to hasmade that same point that look,
you, you can beat yourself up, but you're going to pay for it.
And if you don't make time to dothat exercise, move your body,
(26:04):
take care of yourself, then you're not going to be able to
perform the way that you want toperform.
So that that really resonates. And do you have a thing you like
to do? Do you like running?
Do you have, you know, some people, they swim, they, you
know, they have a certain activity they do.
Is there anything that for you that you really enjoy to do to
(26:27):
to recharge yourself? Yeah, I mean, we talk about and
recharging. There's obviously the physical
side of it. I find like I've got to have
engaged things. I'm not very good at doing
passive things like walking the dogs grey, but I'm thinking
about work the the the whole time I'm walking the dog so that
I've got two kids who keep me entertained and very busy on the
last size of my my wife and children are very good at
(26:47):
keeping me grounded. But yeah, but I think it's
important to have projects that feed energy, if you like on on
that point. So I have a small side project
putting rugby in schools and everything I'm looking for
start-ups on that point of view that growing rugby in Vancouver
is a startup issue that it's nota well established sport if you
like. So getting frameworks signed
(27:08):
with the school boards and, and finding coaches who can go out
and coach and grow the program there.
So I think the, the biggest focus for kind of me is yeah,
is, is work and making sure I have an environment around that
that provides the energy there to be successful.
So family and community are a huge part of being able to
deliver on that. That's cool you're bringing
(27:31):
rugby to schools where you are in Vancouver.
Trying to, yeah. Nice, Yeah.
What about books, podcasts. Anything you're listening to now
or that you've read in the past that you'd recommend to our
listeners? Yeah, there's there's so many
books and great podcasts out there.
I do listen to Daria, the CEO regularly with Steve Butler to
(27:52):
recommend that for anyone there.It's it's just got some great
spits speakers on hearing about their their kind of experience
from the the founders with Richard Branson the the founders
of Netflix and the books are remembering the hard things
about hard things that are remember the name of the book
read like the last month, but I'll.
Yeah, that book just came up. The hard thing about Hard things
(28:13):
that just came up at the I was at Nikko's Suncast Summit last
week in Denver, and I believe that book was one of those that
was recommended by another CEO. What about your team?
We talked about how you stay healthy, stay motivated.
What do you do to keep your teammotivated?
Yeah, but sure, I mean come backto to values of the business and
(28:36):
impact. You know, the biggest thing like
people will talk about all of the softer things that that
maybe get a lot of buzz on on LinkedIn about mental health and
days off and all this other stuff.
But the bottom line is your teamcoming to work and excited about
what they did doing there. And the number one thing that
impacts that satisfaction is having a great man manager.
(28:59):
I just come back to it on that point, like the, the fundamental
people, will people have great job satisfaction working in a
paper clip factory, right? If they have a great team
they're working with and a greatman manager, They're the the big
point is to come back to the team, though, is impact.
When our customers are able to get, you know, better financial
returns. When our customers are logging
in and using the, the software all the time, showing those
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metrics to to the team, the impact that we're having on the
work when we got customers who are happy to be reference points
and they're jumping up and down being like, hey, this is a great
product. This is really helping our team.
That's really what gets the teamkind of most excited.
So when we slim back the companyon sales and marketing,
obviously that's really hard forthe team going through items a
lot like on that. But the bottom line was it just
(29:43):
came back to customer impact andlike the folks stuck with the
team they retained. I've stayed with us for the
journey there because I think from a hiring perspective, we've
got focus who want that impact, who want to be having an impact
on every windows, solar and bestasset on the planet and we're on
that journey there to achieve it.
(30:04):
My final question is, has your work left you a climate optimist
or a climate pessimist? Yeah, I'm a I'm a pragmatist, I
guess on, on these things as we go.
Like I got into climate because it viewed it was the great
existential crisis for us that the biggest way that I could
have an impact there was taking my expertise and applying it to
(30:25):
renewable energy there. But I remain an optimist all the
time. The, the point is we, we, we
need to get kicked in the butt enough times to, to basically go
out and fix on these things. So we're going to have huge
climate impact, I'm sure on thatpoint.
But I have a huge amount of faith in the innovation of
humankind to kind of resolve these things.
(30:45):
Like when I started working on wind farms, I mean, it was a
really subsidized industry. Last year, they installed 50% of
the grid in Pakistan was built by people putting solar panels
on their roofs. The ability to scale and deploy
this technology is incredible, and I'm really excited about
(31:06):
what we can do to kind of solve climate as we go forward.
Thanks for joining us for another episode of Scaling
Clean, the podcast for clean economies, CEO's, investors and
the people who advise them. I'm your host, Melissa Baldwin.
Our producer is Claire Quirin. If you like what you hear on
Scale and Clean episodes, we'd appreciate it if you'd give us a
(31:28):
five star rating and leave a comment where you get your
podcast. And until next time, we wish you
all the best in the clean economy transition.