Australia is uniquely positioned with lots of sunshine in the summer months, and we have seen the proliferation of rooftop solar in 230,000 households and businesses to 2014. The take up of wind power has not been so popular, with several groups opposing the establishment of wind farms, particularly near highly populated areas.
However, in the last year there has been increased discussion about the necessary change that will have to happen in energy production for Australia to keep its commitment to the clean energy target which it signed at the Paris talks this year.
A share which have benefited from this clean energy discussion has been Infigen ( IFN) which has seen a 250% surge on its price in the last twelve months from $0.32 to $1.09 per share. Infigen is a developer, owner and operator of renewable energy generation assets in Australia.
The realisation by the Australian community that clean energy is the future has led in turn to discussion of the storing of solar energy with the use of batteries. This has become a distinct possibility with the development of lithium batteries. Australia has approximately 30% or the world lithium resources. Hence companies which are involved in the exploration and mining of lithium have had a surge on the stock exchange in the past 12 months.
An example of such a company is Galaxy GXY. We have seen the price of Galaxy shares increase by 1288% in the last twelve months. Other companies involved in the exploration for lithium includes Orocobre ORE, Pilbara Mining Ltd PLS, Neometals NMT, Altura Mining AJM and Volt resources VRC and GMM General Mining. Galaxy acquired General Mining in an off-market takeover which was accepted at the end of May 2016. The most established lithium miner Orocobre Ltd has seen a 132% increase in its share price in the past twelve months.
For this trend to persist we need Government support of clean energy and the development of reasonably priced lithium batteries. This would enable owners of residential properties in Australia to then be convinced to invest in battery storage for the energy produced by their rooftop solar panels.
25 June 2016