Hi All.I was up the bush yesterday, and IFN drops this wonderful...

Hi All.

I was up the bush yesterday, and IFN drops this wonderful news on the market.

Adding an SA 'firming' asset in combination with the new SA BESS battery will lift the reliability and revenues of all SA kit. IFN is transforming itself from a supine price-taker into a bold price-maker. BESS capacity looked small compared to the Hornsdale big battery, yet it will be quite sufficient operating in conjunction with SAGT.

IFN now has the capacity to 'firm' 600-700Mw of renewables on top of its existing portfolio. IFN can not only contract third-party WFs, it can confidently build out its own development pipeline. IFN's Flyers Creek NSW 145Mw WF project near Orange now has superior economics - either wholly-owned or capital lite contracted. Another IFN SA WF suggests itself.

At ~$900kw, SAGT is considerably more expensive that buying Smithfield at $600kw. Note the anticipated utilisation is in the range 2-20% V Smithfield's 2-8%.

While the SA government has offered IFN a site for SAGT, the ultimate location appears open and subject to further studies. It may well go somewhere else, located for strategic benefit.

The IFN operations room is looking more 'black box' by the day, with a broader range of generator despatch options, bidding and trading, even providing physical settlement in the electricity derivatives market.

I still want to see an IFN battery on the ACT-SYD interconnect.

Ash