JP Morgan energy and utilities analyst Mark Busuttil said returns on a $55/MWh PPA — assuming the project was 80 per cent debt funded — would be around 11 per cent.
"The risk is that all free cash flows for the initial 15 contracted years would go solely to debt repayment, and equity holders would only generate returns beyond the contracted period." "The analysis highlights the risk of wind farm development and justifies the reasons why typical operators of wind farms are moving away from further development," Mr Busuttil said.The JP Morgan research noted the declines in solar PPAs have been even steeper.Infigen's chair Len Gill told investors recently the company would be pursuing direct contracts with commercial and industrial customers, rather than recontracting its output under long-term PPAs.
They also keep churning away when the wind stops blowing and the sun stops shining, a trait retailers are prepared to pay for.
GeoEngineering
Four nuclear power plants the size of Kashiwazaki-Kariwa would have more output than all forms of renewable power combined, and that is not current output but future output! Now imagine fusion plants doing the same with zero risk, so why on Earth would you invest in RET now?
If only we still had a carbon price to provide a stable market-based encouragement to stop pollution and save Aussie jobs. AusPol AusVotes AusVotes2019
These are lies. You're being Rorted. Coal oozes Metals especially heavy non reactive ones. It is all being stolen.
Really? We’re supposed to be concerned because renewables are finally going to force prices down? Investors may have some concerns, but us Consumers are cheering! Cheap power, that doesn’t warm the Planet has been our goal for decades. & the Speculators have made enough already!
As input costs trend to zero, time to read this blog?