Member Info for altolusso

Also hold 29.6%; IIRC above 29.9% would have to lauch a bid

DESNZ update this morning on connections and battery projects

https://www.gov.uk/government/publications/connections-reform-delivery-update-and-battery-capacity/open-letter-from-desnz-and-ofgem-on-connections-reform-delivery

TL;DR There is far more battery capacity coming forward than the system expects to use.

Next obvious step for Proteus is a demo version of their scaled up turbine which will not be cheap

The company has evolved over time, but spinning out Proteus means it is no longer a technology growth stock. The Meygen project will be profitable when it scales up, but that will need a large amount of capex with probably £50m+ of equity type investment. BESS is attractive but will be an increasingly competitive market, with utility type returns; profits will come from dealmaking, where it does not have a sustainable advantage. At some point it will be snapped up by a bigger player.

It's not that simple; the change does not apply to tidal but only to wind (all forms) and solar.

The impact assessment estimates that this change will reduce the auction price by 11-13%. It will reduce the headline price which will be presented as a major win, but the impact assessment shows that it will increase the overall cost of CfD subsidies.

Issue is that most of these grid agreements are "offers", which historically were on a first come, first served basis. Currently there are "zombie" projects which haven't advanced but hold grid offers, effectively blocking new projects coming through. NESO is now doing a review to remove those zombie offers, by looking at the progress each one has made, raising the risk that current "offers" will be removed, reduced or delayed.

Source is someone who has an offer; but agree there's little public information.

It may of course have an impact on AR7 timelines; if you're a project developer whose grid offer is curtailed or delayed, I'm sure you'd appeal.

Also need to consider NESO's review of grid capacity where projects need to show progress towards delivery - confirmations expected mid August.

Pentland Firth is a major shipping route so high risk with floating turbines.

CCS is a side-effect of the commitment to Net Zero. Some things cannot be decarbonised, so to reach Net Zero you have to assume CCS works. If you assume CCS works, then you are on a different path eg gas with CCS.

The difference in valuation between the 2 tidal phases is because the first 6MW is at 5 ROCs (c£355/MWh) and the expansion is on CfD terms (current price c£260/MWh); LCOE will be near the CfD terms.

On Future Revenue

Don't forget that current turbines are on ROCs and all new turbines will be on CfDs ie

1MW x 365 x 24 x capacity factor x availability x CfD price/MWh x CPI (2012-2024)

and so won't get £1m pa/MW capacity.

Suggest you read the message sent to the bondholders - it is a little more scary