Genex Power Share Price Up on Battery Project Update (ASX:GNX)
At the time of writing, the share price of Genex Power Ltd [ASX:GNX] is up 7.69%, to trade at 21 cents.
As you can see on the long-term chart for the GNX share price, it’s been a bit of a roller coaster for investors since it listed in 2015:
This could in many ways be a reflection of the uncertain policy landscape for energy providers in Australia. Here’s a quick look at what drove the GNX share price up today.
Licence to establish large-scale battery energy storage system pushes GNX share price up
The GNX share price went as low as 19.5 cents by 11am but clawed back the initial downwards move to push as high as 21 cents, which it currently sits at.
The news that their Queensland battery energy storage system (BESS) got an important licence clearly was a factor.
Here are the key bits from today’s announcement:
- ‘Agreement with Powerlink to access land adjacent to Powerlink’s Bouldercombe 275kV/132kV substation for the Bouldercombe Battery Project…
- ‘Initial 50/75MWh and is expected to be the first standalone large-scale battery storage project in Queensland…
- ‘GNX has selected its preferred battery supplier and integrator for the Project, which facilitates the commencement of the grid connection process.’
The licence is an important piece of the puzzle for GNX as they push forward with their renewable energy project in Queensland.
It’s a heated debate the energy question, but there is an investable trend beneath the surface.
The increasing prominence of ESG investing could be major factor as well — which I think is an incredible opportunity, regardless of your position on energy choices.
Outlook for the GNX share price
Short term, today’s move will do little to stop the sideways momentum on the chart for the GNX share price:
Long term, politics could be a factor.
I’d say regardless of the risk posed by a change in government (or more precisely an unchanged government), things could be looking up for GNX.
There is a big push towards green projects in finance, as demonstrated by the rise of First Solar, Inc [NASDAQ:FSLR] and the iShares Global Clean Energy ETF [ICLN].
As a result, on a longer time frame GNX could be one for the future.
For Money Morning
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