Over at RenewEconomy.com.au WattClarity kindly put up a spreadsheet of Smithfield's 10 year production. Basically, it was turned off mid 2017 and generated very little since - 95 hours in CY18. It continued to bid in the market, but at above $10,000 MW/h.
The reason for Visy's decision to sell out is obvious - very high Eastern Australia gas prices mean it makes no money, just like IPL's Gibson Island fertiliser plant which is facing closure. The very high Short Run Marginal Cost of running Smithfield means it will have to be used very judiciously. IFN has bought cheaply, well below replacement cost, however it would only make sense to 'firm' variable output at very high prices.
Please feel free to disagree, I am all ears.
Ash
IFN Price at posting:
46.5¢ Sentiment: None Disclosure: Not Held
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