Quote Originally Posted by fish View Post
PSE -I know you have a lot of experience in the electricity industry and are probably frustrated by my posts-I have no such experience and am just getting my head around how it works.
Clearly you don't like gas but when I research the present and future -eg look at wikipaedia and levelised cost to generate it is clear gas is the cheapest way to build new generation-and that is using old gas prices!
At $1.7 genesis is not too bad, just not cheap enough for me to buy.
Wind and geothermal are the cheapest new build in NZ because we have exceptional resources, the days of the ccgt in NZ are numbered. There may be more aeroderivative 'peakers' built in time.
GNE's free cashflow and dividend is based on wasting assets, gas fields and turbines that need to be replaced.
I think the market at the moment is undervaluing MEL relative to GNE, perhaps not recognising this advantage.