Telstra Invests $100M In A Farm
Telstra a Company that several major shareholders are dumping, as their share price slumps from a high of $6.54 to $4.41 has decided to invest in a solar farm in an effort to protect them from electricity volatility.
The Company has admitted that they are involved in the construction of a $100 million solar farm in northern Queensland in an effort to protect itself from rising power prices.
According to the AFR the Company has struck a deal with renewable energy giant RES Group that will result in Telstra buying all the power generated by a 70 megawatt solar project to be built near Emerald over “multiple” years.
Head of Telstra’s new energy division Ben Burge also said the telco was gearing up to use its hundreds of megawatts of backup power at exchanges around the country to offer electricity into the wholesale market when ultra-high demand causes prices to surge.
“It’s a highly distributed, highly responsive source of energy which over the coming years we will look to make better use of in order to improve our resilience but also to address extreme wholesale prices in the market,” Mr Burge, the former head of Meridian Energy’s Australian business, said.
He said Telstra, which accounts for about 1 per cent of the country’s power demand, was looking to protect itself from movements in power prices the way large corporates did for exchange and interest rates.