TSX:NPI - Post Discussion
Post by
BayWall on Sep 15, 2023 2:06pm
Long term interest rates still rising
The link here discusses how higher interest rates can lead to an impairment charge on the books.
A decline in interest rates would increase the value of wind projects (Net present value (NPV) and internal rate of return(IRR), stuff), less interest payments and maybe even encourage selldowns.
The article also looks at two other headwinds, supply chain bottlenecks and inflation. All are uncontrolable by windfarm developers. Some limited hedging can be done, but even these can lead to losses.
Offshore wind woes | WorkBoat
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