Not sure I agree about the being forced to change issue. To me,declining energy consumption has a direct impact on the decision to invest in new generation. It's the counter intuitive outcome of the carbon tax. Everyone thought it would drive investment in new less carbon intensive energy because no one every thought that energy demand would decline. We have a high dollar which is closing manufacturing and reducing industrial demand; and higher electricity charges that are reducing domestic demand.
In the declining market of a deindustrialising (that is, undeveloping) economy like ours owners will continue to flog the old dead horse coal power station for as long as they can. They have little, if any, incentive to invest in new generation.
Companies like Origin are pinning their hopes of selling cheap gas to Asia and putting their investment there. Investments in alternative energy has not been all that successful.
CFU is a purely European and perhaps US play; I don't ever see Australia being high on the agenda, particularly when there is already talk of issues around an affordable on-going supply gas in the domestic market. It's all being sold to Asia.
The only way I see CFU taking off here is if we start to realise that all this money spent "gold plating" the distribution system would be better spent on decentralised power.
CFU Price at posting:
6.2¢ Sentiment: LT Buy Disclosure: Held
