Energy Giants Clash: The outlook for Origin Energy’s ($10.6 billion takeover target) long-term value is now uncertain, following the Australian government’s recent announcement to fast-track the rollout of renewable energy. The government’s plan to underwrite 32 gigawatts (GW) of new wind, solar, and battery projects, with potential investments estimated at A$30 billion ($20 billion), has muddied the waters just before a crucial shareholder vote.
Origin, the second-largest power producer in the Australian electricity market, faces a reshaped landscape with implications for electricity prices, future investments, and existing plants. This development coincided with Origin receiving a last-minute revised offer from Brookfield (BAM.TO) and EIG, prompting a delay in the shareholder vote to Dec. 4. The uncertainty introduced by the government’s 32 GW scheme has led some investors to consider selling to the suitors.
The government’s push for more renewables is anticipated to lower electricity prices, impacting Origin’s coal and gas assets. Max Vickerson, an equity analyst at Morgans, notes that this move accelerates the devaluation of Origin’s legacy assets and those of its rival, AGL Energy (AGL.AX). Cheaper wholesale prices may not benefit Origin overall.
The government’s scheme, underlining a potential influx of new investment, challenges Brookfield’s argument that its resources are necessary for a swift decarbonization. If others take up the underwriting offer, Origin could save costs by allowing external entities to build renewable projects, while Origin contracts power for its customers.
AustralianSuper, a significant shareholder, believes Origin’s diverse portfolio, including a stake in Octopus Energy and gas assets, positions it well for the energy transition. However, the government’s plan adds more uncertainty, leading some, like Allan Gray, to argue for accepting the A$9.43 offer. The chief investment officer, Simon Mawhinney, notes that the government’s scheme may push down returns, adding significant uncertainty to the equation.
Our Reader’s Queries
How do you deal with giants in clash of clans?
By surrounding a Wizard Tower with Walls, you can significantly reduce the HP of a group of Giants without relying on a Healing Spell. To further enhance your defense, consider placing a Mortar between the Wall and the Wizard Tower. This will not only help attack any supporting troops, but also provide additional protection against the Giants once they break through the Walls. With this strategy, you can effectively defend your base and thwart any enemy attacks.
What is the Electro Giant’s weakness?
When it comes to taking down the Electro Giant, the Inferno Dragon and Inferno Tower are a dynamic duo. To ensure success, it’s important to position the Inferno Dragon strategically. Place it far to the side, away from the Electro Giant’s path and any defensive buildings. This will give the Inferno Dragon the best chance to quickly and easily defeat the Electro Giant.
Are giants good in clash of clans?
Giants are a force to be reckoned with due to their massive hit-points. They are virtually unstoppable against single target defenses such as canons and archer towers, as well as multi-target inferno towers. Even at lower Town Halls, giants can be a formidable opponent if the enemy clan castle is empty. Their sheer size and strength make them a valuable asset in any battle.
How do you defend an e Giant?
When facing an Electro Giant in Clash Royale, there are several cards that can be used to counter it. Inferno Tower, Inferno Dragon, Mini P.E.K.K.A, Skeleton Army, and Goblin Gang are all effective options. These cards can distract the Electro Giant and deal damage to it, making it easier to defeat. By utilizing these cards, players can effectively counter the Electro Giant and come out victorious in battle.