General GNX News, page-2121

AFR article today indicating cost of renewable projects suffering from inflation blow-outs. Link below no doubt will need you to replace "copyright" with the AFR Web address.

But for me this means we get twice the benefit of inflation:

1. The benefit of fixed construction costs pre Covid
2. Energy Australia paying inflation-linked PPA to shareholders

https://www.copyright link/companies/energy/soaring-technology-costs-challenge-2030-climate-targets-20230814-p5dwaq

Quote from GNX CEO James Harding in the article:


says they were lucky to have locked in their construction contracts before the pandemic.The two mega-pumped hydro projects proposed by Queensland’s Palaszczuk government – the 2 gigawatt Borumba project near Gympie and the 5GW Pioneer-Burdekin in North Queensland – are larger than the Kidston project (providing 24 hours of continuous storage) but will cost a staggering $30 billion.“We got aligned early with our contractor group and doing it in an alliance building up and understanding the risk,” he says.Harding concedes the project would cost substantially more if it was starting today - a fact also not lost on renewable energy developers attempting to reach financial close at the moment.