Document Actions
Wind the big renewable winner
| According to a number of reports, wind will be the big winner, given that the legislation has been passed to expand to 20% the Federal Government’s minimum renewable energy target. Some say wind turbines might account for 60 to 70% of the new renewable energy supplies, although this has apparently caused some infighting with rival geothermal, solar and wave proponents. But it would seem to be the most advantageous for this industry because of the significantly large underground foundations each turbine needs. |
AGL probably has the best development pipeline, with the windiest sites closest to the electricity grid, including the big Hallett wind farm in South Australia. Towards the end of last month, it reported $34m in earnings, from trading renewable energy certificates, when it delivered its 2009 results. Like other forms of renewable energy, RECs are earned as soon as the electricity starts to flow.
Other big players in wind energy are Origin Energy and Infigen Energy, previously Babcock and Brown Wind. The latter has extricated itself from the wreckage of the collapsed Babcock and Brown empire and is halfway through a transformation which observers say will make it a growth company, that develops, operates and finances wind farms.
Infigen has a manageable debt profile and is a good buy on the stock exchange at about $1.50 a share, analysts say.
