There are 2 parts to CCE now - CETO and everything else (microgrids, batteries, solar farms, LLC JV etc.). Everything else is EMC
While not true yet, the EMC part should be self sustaining and not require capital raising (without a good justification such as to fund a solar farm that will create a future revenue stream), and should not be cross-subsidised with cash from govt R&D tax subsidies in the long term.
This doesn't seem to be the case yet, but there are some encouraging signs with the creation of a backlog of commercial projects (mostly with LLC JV). I'm happy to give them another year to see whether the EMC/LLC projects can generate a sustainable and profitable income stream.
Regarding CETO: Wave energy may be decades away from being competitive with other sources of power. No different from Wind and Solar in their early days. In order to mature into a cost-competitive reliable energy source, wave power will need a lot of investment, and government subsidy. If successful, the result will be an energy source that while intermittent, will be more predictable than wind, and able to generate 24/7 unlike solar.
So I think wave energy is worthy of govt incentives while its potential remains. It will be a complementary pillar in the supply of clean energy, along with wind, solar , hydro, and large-scale storage (batteries, pumped hydro, molten salt, molten silicon etc etc).
CCE Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
