Infigen Energy revenue becalmed by low wind speeds

Listed renewable energy company Infigen Energy has suffered a 23 per cent fall in revenues from its Australian wind farms because of lower wind speeds, and a fall in wholesale energy market prices.

The company says in its latest quarterly report that wind production from its Australian portfolio of six wind farms (555.6MW) in NSW, South Australia and Western Australia was 736GWh in the first half of the current fiscal year, a 19 per cent fall on the same period a year earlier.

In the latest quarter, the wind production was 361GWh, a fall of 13 per cent. Wind production in the US, its other major market, was up slightly at 1,367GWh for the six month period.

The lower wind speeds, and a fall in wholesale market prices, meant that revenue from its Australian operations fell 23 per cent to $65.6 million for the half. A 9 per cent lift in US revenue, partly due to the falling $A, reduced overall revenue falls at 6 per cent.

Infigen Energy last week confirmed that it has hired advisers to explore the sale of its 18 US wind farms, worth about $500 million to reduce its debt levels.

It needs to do that because of uncertainty surrounding financial support from the Australian government, and its commitment to the renewable energy target.

Managing director Miles George has previously warned that the company faces potentially “dramatic” decisions to protect its shareholder funds if the policy uncertainty continues, and the price of renewable energy certificates continues to wallow.

The company has attacked the Abbott’s government’s position on renewables energy as “indefensible”, suggesting it was based on “anecdotes, wishful thinking, prejudice, blind faith, selective reporting and simple denialism,” rather than “science, sound analysis, prudent precaution, long-term consideration, and proven economics.”