Asset sales follow moving wind patterns at Infigen Energy

Infigen Energy has reported another quarter of poor wind conditions in the United States, offset by better revenue in Australia – which probably explains why the listed renewable energy company now sees better opportunities to monetise its Australian assets than its US portfolio.

The company on Tuesday said production from the US portfolio was down 10 per cent from the same period last year to 875 gigawatt hours (GWh) – primarily as a result of poor wind conditions. This translated into a 9 per cent fall in revenue from the US to $40.6 million for the quarter.

In Australia, however, production was more or less steady with the previous corresponding period at 374GWh – as better wind conditions in NSW and Western Australia offset poorer wind results in others (Lake Bonney in South Australia).

Revenue from Australia was up 10 per cent to $35.7 million, representing higher prices for its wind farms that operate on a merchant basis, rather than a fixed contract. Overall revenue for the three months was about steady. Infigen earns more than twice the rate per megawatt hour (MWh) in Australia ($95.30) than it does in the US ($45.30).

Infigen Energy recently confirmed that it had hired advisors for the possible sale of its 140.7MW Capital wind near Bungendore in NSW.

There is a growing interest from institutional investors in buying established renewable energy assets, and Infigen hopes that any sale will give it added financial flexibility that could enable it to consider further developments. In recent times, it has been hamstrung by its high levels of debt and the inability to find a buyer for the US assets.

Infigen Energy has previously said it has received interest in six operating wind farms in Australia. If these sales went through it would transform the company’s role to an operator rather than developer/owner.

Infigen Energy’s wind farms include the Alinta wind farm in Western Australia, the Capital and Woodlawn wind farms in New South Wales and the Lake Bonney 1, 2 and 3 wind farms in South Australia.