Solar prices in Australia tumble to ‘extraordinary’ lows

first_imgSolar prices in Australia tumble to ‘extraordinary’ lows FacebookTwitterLinkedInEmailPrint分享Renew Economy:The cost of building new large-scale solar energy generation in Australia has fallen to an “extraordinary” new low, the head of the Australian Renewable Energy Agency has said, citing industry reports of numbers down around the $50/MWh mark.Australia’s PV price plunge has seen the cost of utility-scale solar fall from around $135/MWh when ARENA launched its first auction in 2015, to “somewhere in the $50s” today, or $1/W, ARENA chief Ian Kay said on Wednesday.“So, we’ve gone from $1.60/W….to, I think you’ll actually find that people are now talking about, by the next round of projects that are being developed, due to be financed in the next 12 months, bidding under $1/W,” Kay told the Large-scale Solar & Storage conference in Sydney, co-hosted by RenewEconomy. And that’s then translating into…dollars per megawatt-hour of numbers starting with a five, so somewhere in the 50s, dollars per megawatt-hour for solar.Kay’s comments firm up reports of recent power purchase agreements locked in at sub $55/MWh, such as the PPA obtained by Origin Energy for the 530 MW Stockyard Hill wind farm in Victoria, and also for some solar projects. And it confirms that solar is now well and truly the cheapest form new energy generation and is well under the cost of wholesale electricity in Australia–even with the cost of storage added.Kay’s comments were echoed by Leonard Quong, an analyst with Bloomberg New Energy Finance, who told the conference: “The costs are coming down faster than I can update my charts.” Quong noted that the emerging over-supply of Chinese modules – estimated at more than 20 GW – could start to have an impact in Australia by the end of the year, pushing the cost of large scale solar projects down further.However, both Kay and Quong noted that storage remains a key issue – both the balancing of the grid, and to deal with negative pricing events in the wholesale market in the middle of the day, which are already being witnessed in Queensland. ARENA’s Kay said that even with the added cost of what is becoming known in the industry as “firming,” the cost of solar is beating the current wholesale electricity market in Australia.More: Australia solar costs hit “extraordinary” new lows – $50s/MWhlast_img read more

Pension funds hail new Danish 30-year bond as yield-curve definer

first_imgChristian Lindstrøm Lage at PFABut like Lindstrøm Lage, he said this issuance was a good idea, so that the Danish government yield curve was well defined at the 30-year mark.Even though the central bank said future annual issuance volume in the 30-year segment was expected to be of the same order of magnitude as in 2020, Mielke said continued issuance of the bond in the next few years was not important to PensionDanmark.“The most important thing is that the few very long government bonds that are there are of a suitable size and are liquid,” he said.Lars Peter Lilleøre, head of fixed income at Sampension, said that apart from providing a benchmark to the long end of the German to Danish bond swap market and to the Danish mortgage bond market, the new bond also gave some much needed positive convexity in the Danish fixed income market.“We will have potential interest in the bond on both a stand-alone basis and as a possible extension from our DGB 2039 positions,” he said.Building up the bond gradually to ensure sufficient liquidity was critical though, he noted.“We would hope and recommend for it to be tapped regularly on the bi-weekly auctions after its initial introduction,” said Lilleøre. Meanwhile, Poul Kobberup, Danica Pension’s investment director, told IPE: “We think this is a positive move from the central bank, and these bonds will give us a curve to trade on. We are a long-term investor so we are more interested in the long end.”Kobberup also said the issue would help liquidity at this end of the sovereign debt market.Asked to predict what the bonds are likely to yield, he said it was market dependent but likely to be between a quarter and half a percentage point.At statutory pension fund ATP – which at the end of September had DKK810bn of guaranteed pensions to cover – Jan Ritter, head of hedging and treasury, said: “ATP views the central bank’s decision to begin issuance of a new 30-year government bond in 2020 positively, and it will suit ATP’s need for long Danish hedging assets well.” Denmark’s pension funds have welcomed the Danish central bank plan to issue 30-year bonds for the first time in over 10 years, anticipating the crucial role the bond will play in defining the long end of the yield curve.Though the Danish government has scant need for borrowing, in its debt issuance plans for 2020 Danmarks Nationalbank said it will open a new 30-year nominal bond maturing in 2052 in the first half, and aims to issue between DKK5bn (€669m) and DKK10bn in the bond via auctions and tap sales.Unusually these days for Danish government debt, the bond is likely to have a positive yield, as the current Danish government bond yield curve turns positive around the 14-year point.Christian Lindstrøm Lage, chief executive officer of PFA Asset Management – an arm of PFA Pension – told IPE that while PFA would be interested in the bond issue as an investor, its main importance was more from a regulatory point of view. “This bond is arguably a very important product for the pensions industry both as an anchor and a starting point for Danish asset pricing, because once it’s out there, we will then have government bonds that mark the back end of the yield curve,” he said.The pension sector in Denmark is not too reliant on the Danish curve, he added, since it uses the euro curve to measure its liabilities. However, he said market pricing of the new long bonds would provide much-needed evidence of confidence in the Danish central bank’s continued commitment to the krone-euro peg.“We trust that the central bank can keep the interest-rate differential at some fair level, but there’s no way to answer that if you don’t have current issuance at the back end of the curve,” said Lindstrøm Lage.PensionDenmark, which runs a market-rate pension product for its mainly blue-collar members, has only limited interest in the 30-year government bond currently, according to Steffen Mielke, the pension fund’s head of fixed income.“The low interest rates mean that our allocation to long Danish government bonds is at a minimum,” he told IPE.last_img read more

Former Sofapaka skipper Bagoole dead

first_img0Shares0000Former Sofapaka defender Johnson Bagoole was confirmed dead in Lira, UgandaNAIROBI, Kenya, Jun 21- Former Sofapaka skipper Johnson Bagoole has died at 38, Ugandan media reported on Thursday.A senior Ugandan Journalist has told Capital Sport that the utility player succumbed to meningitis in Lira, Northern Uganda where he was rushed to from Kampala after his condition worsened. Bagoole had two separate stints at Sofapaka including the successful 2014 season where they clinched the GOtv Shield and in 2016 captained the side to avoid relegation.He left the club mid last season and moved to Congo where he played for Bukavu Dawa.According to popular Ugandan sports website Kawowo Sports, Bagoole had been bed ridden for close to a month suffering from malaria until he was transferred to Northern Uganda where he was diagnosed with Crytococal Meningitis.Speaking to Capital Sport, Sofapaka head coach John Baraza, who has known Bagoole since his playing days in Rwanda, said he received the news with profound shock.“It is so sad because Bagoole is a good lad on top of being a good player. I have known him for a long time and even when I was starting my coaching career, he was there to support me and give me words of wisdom,” a dejected Baraza said.He added; “He was a good and kind person especially with our junior team where he often went to coach and even bought them a whole set of uniforms. As a club we are quite saddened.”“It is sad news that the lion is gone. We have lost Johnson Bagoole. We are making arrangements to transport the body back to Kampala and finally to the ancestral village. Details of the burial arrangements will be communicated in the due course,” Simon Musoke, a former footballer who also played in the same team with Bagoole at Bukavu Dawa told Kawowo.At Capital Sports, we send our condolences to his family and friends back in Uganda.0Shares0000(Visited 1 times, 1 visits today)last_img read more