Capital solar and Cherry Tree have direct connection to the grid, while Forsayth and Flyers Creek look a bit further back, according to latest slides. But I think this is a second order issue.
More important would be:
Can IFN refinance out of the expensive, inflexible existing loans? It will need maximum cash for flexibility when it cuts a deal with financiers.
How much cheap finance from Clean Energy Finance Corporation is available? Is it only project finance for new-build?
Will Vic let Cherry Tree be built with bigger (3.5 Mw +) turbines, taller towers and bigger props than the permit states? Or does the entire planning process need to be repeated?
Should batteries/capacitors be built in? Should they be retro-fitted to existing plant? Which? How? How big?
That is far from a complete list. The permutations, the variables and combinations possible become mind-boggling with turbine prices falling rapidly and future market prices for electricity highly uncertain.
IFN will have expert reports on every aspect of the business. But ultimately, strategic decisions still rest with the board. A mis-step could blow up the business - though I think this unlikely - or mean underperformance.
This is really tough stuff. The board has my sympathy.
Ash
IFN Price at posting:
90.5¢ Sentiment: Buy Disclosure: Held
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