New renewable projects to help keep prices down26 Sep 2019 12:32
From last Friday and well documented in the FT and other press: 12 new UK projects to come online in batches but by 2024 latest. With a strike price of circa £40 per MWH, that is relatively very low and should help keep wholesale prices down. I note BK alluded to sustained falling wholesale prices and a review of hedging strategy. On the one hand, customer renewals can be done at same tariff to customer but improved margin for Yu (mentioned in RNS also). On the other hand, tailing off of prices will reduce margin call payments like the 3.2m Yu recently gave. That is a lot of cash that Yu could use elsewhere.