Tilt Renewables (ASX:TLT) forced to suspend construction of NZ wind farm

• Green energy company, Tilt Renewables (TLT) has been forced to temporarily suspend construction of its Waipip Wind Farm in New Zealand
• The suspension was caused by new government mandated lockdown laws, which aim to stop the spread of COVID-19 throughout the country
• Construction is expected to halt for at least the next two weeks
• Despite the suspension, the company claims that construction will still be completed on schedule
• Tilt Renewables Pty Ltd (TLT) is down 3.9 per cent, with shares trading at $2.69 and a market cap of $1.26 billion

Green energy company, Tilt Renewables (TLT) is maintaining its wind farm construction schedule, despite issues caused by the COVID-19 pandemic.

The company operates seven wind farms across Australia and New Zealand and has two others currently under construction. Constructing the Dondonell and Waipip Wind Farms is expected to cost Tilt $1 billion in upfront investment.

Despite companies across the globe scaling back expenditures to manage COVID-19’s impact, Tilt is continuing ahead with the two construction projects.

However, Tilt has not been unaffected by the outbreak.

The construction at Waipip in New Zealand is not considered an essential service. Therefore, construction has ceased for two weeks under the government’s mandated lockdown measures.

Furthermore, the coronavirus crisis in China has caused a number of turbine components to be delayed.

Tilt was quick to point out that its operating energy services are classified as essential and therefore none of its other wind farms have been interrupted.

Australia and New Zealand’s mutual travel bans have also hindered Tilt’s ability to move and transfer personnel between the two countries. To manage this issue, the company has locally sourced alternate expertise for the time being.

Despite these issues, the company maintains that there is room in schedule and budget to account for the interruptions.

Tilt does expect its Q1 2020 earning forecast to be $1 million below the expected range. The company attributes this shortfall to power outage issues in February, which affected generation rates.

Tilt has not adjusted its overall 2020 forecast with respect to COVID-19’s ongoing economic impact.

Tilt Renewables Pty Ltd (TLT) is trading flat, with shares trading at $2.69 each at 10:09 am AEDT.