Quote:
Originally Posted by Leondros
I can assure you investors rank regulatory risk as one of the highest considerations when investing. It most certainly impacts share price. When we model investments in other companies it’s one Boards and management teams always want sensitivities on.
Naturally the amount of land wind and solar require is going to have huge and lengthy consultation process - perhaps even more so than oil and gas. Atleast oil and gas you can drill 20 wells off the same pad that takes up 100 square feet max and all assets get tied into one large facility. For solar you are taking up acres and acres of land that you basically have to own or lease forever.
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I'm also aware of the regulatory risk concerns with investing. In most places building solar doesn't require the same regulatory process as O&G because they're building something that doesn't require much environmental analysis. Having said that, my point still stands that there's no changes in regulatory risk that explains why the stocks went down