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Hi friends,
Welcome to the weekend. A lot of big news in the retail and utility segments of the energy world this week - all with major climate implications.
Let’s dive in.
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This week is earnings week for several prominent companies in the power and renewables sectors.
Tuesday: Enphase Energy
Wednesday: Vistra, NRG Energy
Thursday: First Solar
Monday (8/10): Sunrun
Here’s what I’ll be tracking:
Can the solar stocks justify the run-ups they’ve had over the last ~2 months?
Since April 1st, the three most widely held solar stocks have been on a tear as solar prices continue to fall and a move favorable energy policy looks increasingly likely for 2021.
Sunrun: +279.96%
First Solar: +67.79%
Enphase Energy: +98.63%
Last week, the big tech companies crushed lofty expectations rewarding investors’ confidence. These earnings will be our first chance to see if solar was able to do the same.
Will we get hints at more M&A in the aftermath of COVID?
Sunrun and NRG completed multi-billion-dollar purchases in Q2. What are the plans for those assets going forward?
Can we expect more M&A and consolidation in the near future?
Check back next week for an analysis of the results and the market’s reaction.
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Links:
— Millions Could Lose Power As Moratoriums On Utility Shut-Offs End
— Oil and Gas Groups See ‘Some Common Ground’ in Biden Energy Plan
— Hackers Are Targeting the Remote Workers Who Keep Your Lights On
Go deeper:
1.
The combination of power shut-off moratoriums and unemployment benefits coming to an end has utility analysts and advocates for low-income communities worried about a potential "tidal wave" of power shut-offs at a time when temperatures and COVID-19 cases are soaring across much of the country and as health officials are urging people to stay home in response to both emergencies.
— Millions Could Lose Power As Moratoriums On Utility Shut-Offs End
2.
That oil and gas interests are OK with a potential Biden presidency might scare some liberals, said Robert Shrum, the director of the University of Southern California’s Center for the Political Future who has advised Al Gore, John Kerry and other Democrats. “There would be some people in the Democratic Party who would get upset that there are oil people who are supporting Biden, but they ought to back off,” Mr. Shrum said. “Don’t we want to win Texas?”
“More and more energy companies are realizing the reality of climate change, the direction consumers are headed, the direction other businesses are headed and they are making changes as a result.”
— Oil and Gas Groups See ‘Some Common Ground’ in Biden Energy Plan
3.
The recent attacks have focused on corporate computer systems rather than the ones that run the physical operations of power plants and grids. The latter are overseen by engineers, many of whom were, until recently, isolated in strictly protected control centers for weeks at a time due to the pandemic.
“If you notice an attack going on, it’s already too late.”
— Hackers Are Targeting the Remote Workers Who Keep Your Lights On
What I’m thinking about
What looks like a talent gap is often a focus gap. The 'all-star' is often an average to above-average performer who spends more time working on what is important and less time on distractions. The talent is staying focused." - James Clear
See you next weekend,
Kevin