Just going off their current projects, funding followed the connection acceptance. Pumped hydro took years between but Jemalong was about 2 months. In my opinion the project wont be funded until the connection agreement is accepted. "We have just finalised a supply arrangement with Tesla" and. "we are just now finalising the connection process with Powerlink and the expectation is that we could commence construction by the end of this year"; - SK Reach Markets (7/7/2021).
A) Connection Acceptance:
Powerlink's guidance from concept to connection acceptance is 9 - 27 months.
Genex announced to the market Update late September in 2020 (22/9/2020) that we; - Got land access rights with Powerlink (dependent on connection agreement) - Intended to award Powerlink the contract for non-contestable and contestable connection works for the Project. - Genex selected its preferred battery supplier and integrator for the Bouldercombe Battery Project. (we know its Tesla). " will now permit the commencement of the grid connection process" - See Powerlink timeframe below.
- If we assume that the connection process started around September 2020, based on the Powerlink timeframe connection and the fact that acceptance should take 9 - 27 months from connection enquiry than we could have approval anytime from now up until December 2022 (worse case scenario). Simon sounds very confident that this will happen this year and I would imagine that Powerlink has given some general guidance about when they will provide this approval.
Powerlink - Connection acceptance timeframe.
B) FUNDING: Funding for pumped hydro was rather complex but if we consider the Jemalong project, that was funded about ~2 months after we received connection acceptance (that also involved a a CR from shareholders). Simon recently stated that the reduction in battery price has made the project suitable for commercial funding (stocks down under interview) which in my opinion means two things: 1) Genex is talking to Tesla about the costs of the battery - Reach markets presentation Simon said "We have just finalised a supply arrangement with Tesla". (SK 7/7/21). - Stocks down under "The decline in costs has made the project very much economic" SK 6/7/2021 2) Genex is talking to lenders about the debt funding of the battery.
Also this has been a static element of Genex Powers presentations lately, it still seems they are aiming for a 50/50 JV.
Stocks down under interview - This is probably the better interview for a battery update. (6th July 2021)
