GNE - Genesis Energy

[winner69]

Should have realised this mornings 'emergency' was just part of the plan to keep the system on the verge of shortage to maximise profits.

[percy]

Should have realised this mornings 'emergency' was just part of the plan to keep the system on the verge of shortage to maximise profits.

Genesis paying their divie today was the give away.
Big day's profit will go a long way to cover it...

[xafalcon]

Should have realised this mornings 'emergency' was just part of the plan to keep the system on the verge of shortage to maximise profits.

Electricity price went to $200,000/MWh for 10 minutes. With Huntly making 400MW at the time, that's $13.3M

[Snoopy]

Should have realised this mornings 'emergency' was just part of the plan to keep the system on the verge of shortage to maximise profits.

Electricity price went to $200,000/MWh for 10 minutes. With Huntly making 400MW at the time, that's $13.3M

Yes but because of the way the power system works, every other power generator supplying the market at that time will also be receiving $200,000/MWh for ten minutes (every supplier gets the same marginal market price). And because they will be using renewable power at a much lower supply cost than burning coal, they will be making a lot more money than Genesis is doing from this situation.

SNOOPY

[xafalcon]

Yes but because of the way the power system works, every other power generator supplying the market at that time will also be receiving $200,000/MWh for ten minutes (every supplier gets the same marginal market price). And because they will be using renewable power at a much lower supply cost than burning coal, they will be making a lot more money than Genesis is doing from this situation.

SNOOPY

The price spike was caused by HVDC problem, so there was massive price separation between SI (<$10) and NI ($200,000). So only power sold into NI was at that high rate

But yes, the whole power pricing mechanism in NZ needs an overhaul. Lake Onslow will kind of address this in 10 years time, but something is needed sooner than th

[mfd]

The price spike was caused by HVDC problem, so there was massive price separation between SI (<$10) and NI ($200,000). So only power sold into NI was at that high rate

But yes, the whole power pricing mechanism in NZ needs an overhaul. Lake Onslow will kind of address this in 10 years time, but something is needed sooner than th

Biggest windfall profits for Mercury I'd have thought, all that lovely north island renewable generation.

[fish]

The price spike was caused by HVDC problem, so there was massive price separation between SI (<$10) and NI ($200,000). So only power sold into NI was at that high rate

But yes, the whole power pricing mechanism in NZ needs an overhaul. Lake Onslow will kind of address this in 10 years time, but something is needed sooner than th

Surely Lake Onslow potentially could exacerbate this kind of situation ?
More reliance on the cable and less new NI generation?

[xafalcon]

Surely Lake Onslow potentially could exacerbate this kind of situation ?
More reliance on the cable and less new NI generation?

Additional HVDC and rectifying capacity will definitely be needed to support Lake Onslow. With peak demand growing by 50MW per year, Huntly being retired, and building in some contingency capacity, I would think about 1.5-2.0GW additional transfer capacity. But would only be needed in northward direction

[winner69]

Maybe that June spike down of the share price to sub 250 isn't going to be the years low after all

Govt 10 year stock 4.5% implies a share price about 230/240 is on the cards

At share price $2.64 gross yield 8.7% - is Equity Risk Premium currently sufficient?

[winner69]

Jeez says 10 year govt going to 5%

Maybe that 230/240 should be 210/220