Shares in Ørsted plunged by 29.7pc on Monday to a record low after it revealed it would seek to raise 60bn Danish kroner (£7bn) from a new stock offering as it battles a downturn in the industry.
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The company, which is majority owned by the Danish state
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President Trump has rolled back subsidies for the renewables industry
Sans subsidy it doesn’t work…..therefore it’s not cheap, is it?
The future should be bright for the wind power industry in the UK with Milliband promising net zero on a fixed and insane timeline. To meet that timeline every auction for new wind power developments will need to be filled. There are plenty of planned wind farms to go around the developers so they don’t need to compete against each other. This puts them in the wonderful position of being able to bid stingingly high prices for Contract for Difference on the electricity they will produce for the next 20 years, safe in the knowledge it will be very difficult for the Government not to accept the bid and walk away from the auction.
If the bid isn’t accepted the “net zero” target can’t be met. Of course if it is accepted it locks in high and inflation tracking electricity prices for the next 20 years. But would Milliband care?
Miliband is the only reason I’m not sure whether the whole Cabinet is evil. He’s so obviously insane he’s the only one with a possible excuse. Still needs a lion, though…
As I’ve said on another thread, here’s what confuses me. Renewable are supposed to produce loads of cheap electricity and the industry is supposed to create oodles of highly-paid green jobs. But jobs are a cost. How can the power ever be cheap if it requires loads of highly-paid people to produce it?
Posted before but…..
“For example, on wind energy, we get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit”. Warren Buffett.
This is the first time in history humanity has gone from one form of energy production to one that is less energy dense.
I continue to marvel at how this scam just rolls on and on. You keep thinking that each new absurdity will see it collide sharply with reality but it never seems to happen.
I’ve read elsewhere that it’s Rights Issue. Isn’t that just a method of extorting existing shareholders? Pay for your bit of the rights issue or see the value of your stake diluted by those who choose to subscribe.
@ decnine
Shareholders can subscribe and sell the new shares or they can sell their “Rights” to subscribe.
So it’s less of a rip-off of existing shareholders than the issue of new shares at a discount to the prevailing market price, to selected investors, in a “Placing”
“I continue to marvel at how this scam just rolls on and on”
I don’t marvel at it, it terrifies me. At the point when I should be enjoying my remaining years, I’m doing nothing of the sort, thanks to Liebor. Even if I move somewhere else, there will always be a nagging worry that my private (and eventually) state pensions could go tits up, thanks to fuckwits like Millitwat…
“Collide sharply with reality”
O/T but here’s a nice bit of “Colliding Sharply”:
https://x.com/visegrad24/status/1954841800406864091#m
Norman,
“Renewable are supposed to produce loads of cheap electricity and the industry is supposed to create oodles of highly-paid green jobs. But jobs are a cost. How can the power ever be cheap if it requires loads of highly-paid people to produce it?”
There’s a weird idea about being at the forefront of green energy, the Dyson of it. We’ll have lots of jobs exporting products and skills.
The problem is that we won’t. Even if we become the big names, that is going to mean consultancy, design, possibly engineering. It doesn’t mean building or fitting. On top of this, the places that become global centres for things are often hard to predict, strange accidents.
My guess is that if wind or solar work, it’ll be in cheap places with a ton of wind or sun, and we just do the electrolysis thing and ship hydrogen/kerosene etc.
Have you seen that the new subsidies on TVs will not be paid if the manufacturer cannot demonstrate its green credentials? For instance, cars manufactured in Poland might not qualify because Poland used lots of fossil fuels.
I suppose this policy was aimed at China and that Poland is just collateral damage.
The Ed case strikes again.