its the banter that keeps me coming back to the AGL thread... its woeful...
apparently the lowest cost providers on the NEM have the biggest impact on the home electricity bill... apparently NEM spot markets are not in surplus when demand is consistent and prices fall - predominantly during daylight hours every day ... some generators (coal) cannot turn off entirely and are stuck chugging away at ~60% - but its not the presence of renewables that is causing spot prices to fall... it must be coal that is causing the price to fall apparently 24% is closer to 30-35% than 34% is... apparently 40Gw + of new renewables wont be enough to compensate for AGLs 4GW of coal power PLUS Yallorn... oh noes. apparently it is renewables that cause spot prices to peak around the world... not coal, not gas, not oil, not constrained supply due to failures of government policy apparently building assets which have phenominal RoI and short payback periods are not worth investing in yet - irrespective of how they actually strengthen the network, improve its operation and (with scale) have a beneficial impact on NEM pricing via arbitrage (individually BESS's do great from arbitrage already) apparently there is no money to be made from electricity arbitrage by BESS or PH... apparently they just waste energy probably the same people arguing that hydrogen cannot replace ICE also argued that ICE could not replace the horse and cart
Twiggy will be saving big bucks first and foremost: When fully implemented, Fortescue’s decarbonisation strategy and associated investment will provide significant environmental and economic returns by 2030, including: • Avoidance of 3 million tonnes of CO2 equivalent emissions per annum • Net operating cost savings of US$818 million per annum from 2030, at prevailing market prices of diesel, gas and Australian Carbon Credit Units (ACCUs)
Cumulative operating cost savings of US$3 billion by 2030 and payback of capital by 2034,
at prevailing market prices • Elimination of Fortescue’s exposure to fossil fuels and associated fossil fuel price volatility which in turn, will de-risk the operating cost profile • Removal of the Company’s exposure to price risks associated with relying on carbon offsets as well as carbon tax regulatory risk • Establish a significant new green growth opportunity by producing a carbon free iron ore product and through the commercialisation of decarbonisation technologies • Ensuring future access to green driven capital markets.
Reduction in costs = lower cost base = more profit
AGL Price at posting:
$6.92 Sentiment: Hold Disclosure: Held
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