The Mercury NZ Ltd (ASX: MCY) share price went floppy today, falling 11%, after a big jump yesterday.
Note that “floppy” is a complex piece of financial jargon which can loosely be translated to ‘it fell’.
Why Did Mercury Shares Get Sold Down?
On Wednesday, Mercury announced that it will be constructing the first 33 of 60 consented wind turbines at Turitea, singling a key move forward for New Zealand’s renewable energy sector. Its shares jumped as a result.
Turitea is expected to be New Zealand’s third-largest wind farm. The wind farm will generate around 470GWh of energy per year on average, which is enough to power 210,000 cars.
“The estimated $256 million project supports the opening up of a further $750 million investment opportunity in wind energy development,” Mercury CEO Fraser Whineray said.
“With this announcement, Mercury has realised the ‘awesome foursome’ of renewables – hydro, geothermal, solar and wind – that enhance our contribution to New Zealand’s green energy future.”
Alongside Australian energy giants like AGL Energy Ltd (ASX: AGL), the energy industry as a whole has begun to commit to more landmark renewable and innovative energy projects.
Mercury generates around 16% of New Zealand’s total electricity generation from its hydro and geothermal projects.
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