Anyone wanting to exit their existing windfarms over the next two years will have to do so at a savage discount. Those currently offering WFs for sale (John Laing) have had negotiations abruptly terminated.
The beneficiaries, as you observe, are wind operators with cash, cashflow, access to credit, equity and deep industry expertise. IFN is definitely one of these. Further, credit is abundant and borrowing costs to trusted businesses is now near nil.
I hope RR & team can resist the siren song of utility solar, unless it is dirt dirt dirt cheap on an EV basis - beware assuming others' debt.
The CV-19 induced shutdown of major industrial electricity consumers - including malls, which use a staggering amount of juice - will reduce the demand for and price of electricity. Renew is tracking this new home-office demand profile, though it is too early to show in the stats just yet.
Struggling coal power plants cannot compete at lower price points with renewables' nil marginal cost. Even if Angus Taylor makes them stay open, blown boilers won't be repaired now or later unless on the government teat.
The risks and rewards in the energy revolution were huge before. How do they scale now?
Ash
IFN Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
