Future of energy, page-15

Challenging thoughts, jezyh.

The energy revolution has many pioneers with backs decorated by arrows like Carnegie and tidal power.

Look at the pressures: the L/NP protecting fossil fuels, the bureaucracy throwing subsidies at the next big thing, households determinedly installing rooftop solar, scientists projecting climate collapse, furious conservationists demanding immediate change and citizens buffeted every which way.

Structurally, the fragile East Australian grid is not up to distributing new dispersed generation - more wires and load balancing batteries are planned, both of which change the relative attractiveness of different RE project sites.

We tiptoe through tulips made of razorblades.

Meanwhile, energy producers are expected to make bold swingeing investments with the equipment they install subject to a Moores Law that means it will be superseded and perhaps uncompetitive in a few short years.

Solar looks highly unattractive, curtailed and generating into time of day with low or negative prices.

Wind needs to be the new 60 story high turbines - good luck getting permits.

Pumped Hydro will also be mired in permits and engineering design issues.

Which leaves... batteries.

We have already discussed the significant advantages W + B has over S + B. One path would be to buy existing WFs - priced on their demonstrated output, not nominal capacity - and reinvigorate by adding batteries, if supply can be found - an open question. IFN is enjoying good cashflows and can act if it sees both value and opportunity. We retail holders get to watch. Pass the popcorn.

Ash