It is low margin on electricity generation but not on capital...

It is low margin on electricity generation but not on capital projects of plant constructions. $45million worth Yarra Valley capital project will certainly give good returns to DEL on finishing the project, even though running that plant and recovering the capital cost by Yarra Valley may take upto 7 years that is IRR of 14.5% (Same as Vic, Stanhope plant.) However, if the electricity\gas price goes up that the capital cost will be recovered sooner as opportunity cost on the purchase of electricity from outsider will be saved.