You might think that we have all had enough wind in the last few days, but not for some companies. The Renewables Infrastructure Group (TRIG), coincidentally with the worst storm for the last 30 years, reported their annual results on Friday (18/2/2022). They operate many wind turbine farms and reported that “Wind resource in 2021 has been unusually weak…” and as a result overall production was 12.6% below target.
But when there is plenty of wind, as on Friday, the price obtainable for the electricity generated fell according to one newspaper report. High winds last week also caused a huge 300ft wind turbine to collapse at a wind farm near Gilfach Goch in Wales. A large wind turbine can cost several millions of pounds so a few incidents like that would be expensive. It’s a case of too much wind is as bad as too little wind.
Is this going to be one of those companies who always complain about the weather? Such as ice cream makers, and garden hose suppliers. Or retailers who complain that spring is too early or too late for their new clothes collections?
I am sceptical so this is one shareholding I have that is definitely “on probation”. I will wait to see if they use a similar excuse in future years.
Meanwhile I hope readers weathered the storm with equanimity. It was not nearly as bad in South-East England as the one in October 1987 which I remember well. Eighteen people died in that one and trees were uprooted over a wide area closing many roads. But there have been much worse storms in the past. For example as many as 15,000 people died in the Great Storm of November 1703.
Please don’t blame these events on climate change or global warming. They are just random events.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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