Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The RNS says that for the Q4 dividend it will be higher to make it to 10p. The dividend you have just received is for the quarter ending in September (Q3).
Selling 0.035GW of ageing units in return for €25m doesn't seem a bad idea. Considering the portfolio currently covers 2.8GW this is essentially rounding error. Shame the price is still such a discount at the moment, but maybe time to lower my average!
The BBC have made a right hash of this article...power and energy are not the same thing! But of course this is great news otherwise.
Not quite: https://www.lowcarboncontracts.uk/cfd-register/register/INV-HOR-001/
All three phases were at a strike price of £140/MWh (goes up with inflation though so is now 175). It's how they got all the offshore wind booming in the first place, fixed rates for years at prices that have historically been above market rates (!?). Seems quite cheap now ey!
Isn't RDF Refuse Derived Fuel? I think you're thinking of MDF which is Medium-Density Fibreboard.
An interesting piece of evidence alongside this is that TRIG, a very similar trust to UKW, is acquiring an 8% stake in Hornsea wind farm...for comparison of these trusts versus the ultimate objective of larger energy firms. Some of those firms have largggge pools of money to develop some seriously big wind farms with a lot of offshore experience to enable it.
Just a general query as to what other posters think about the other ITs available with a similar theme.
UKW has just increased its div for the year and is very similar yields to TRIG. Then there is BSIF which has a higher yield but focuses mostly on solar projects at the moment.
I have some of these in my portfolio as an asset backed (hopefully) inflation proof investment, keen to hear what others think!
I assume you mean 15p/kWh and that is much closer to retail costs than wholesale costs. The last 12 months has averaged nearer £80/MWh which is 8p/kWh.
Secondly, inflation of energy prices (not just this last month or two spike) will mean revenue is likely to increase over the lifetime of the plant.
I don't think it's quite that clear, nuclear relies on government intervention and approval more than other power generation sources.
I might add to this that newer sites are sometimes selling on the open market as the installation price has fallen significantly over the last few years and they are competitive in their own right. In this case when looking at the longer term then there is some protection for newer assets to have revenues rising with wholesale costs, if inflationary fears play out as is recently suggested. My understanding though is that a lot of UKW assets fall under what I described in my previous post.
Older sites are more likely to have fixed prices through the Contract for Difference (CfD) schemes used when the industry got going in the UK. So the wholesale price won't particularly affect the generation revenue, only how much the wind blows! Even though there has been news of a particular wind lull over the summer it is, after all, a game of chance and will eventually be offset by a windy period (noting that windy periods can actually drive the wholesale price down!).
BP and Total have both got involved with the Round 4 auction in the UK already, these projects will be above 1GW easily. UKW currently has an installed capacity of about 1.2GW made up of many little projects, can't imagine it would be to an oil giants taste to get involved with that.