Tilt Renewables (ASX:TLT) share price falls despite wind farm news

The Tilt Renewables (ASX:TLT) is sliding lower today despite the company announcing a major development at one of its New Zealand wind farms.

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The Tilt Renewables Ltd (ASX: TLT) share price is getting hammered today despite the company providing a positive update to the market this morning. The Tilt share price started the day well, opening 2.4% higher at $6.01.

However, at the time of writing, Tilt shares have retreated back to $5.70, down 2.9% for the day so far. The S&P/ASX 200 Index (ASX: XJO) is also having a pretty lousy day, currently down 1.25%.

Tilt Renewables is a company that operates a portfolio of renewable energy assets across Australia and New Zealand, mostly solar and wind farms.

So what did Tilt report today?

Why did the Tilt share price open higher?

The Tilt share price enjoyed a temporary boost on open as a result of an announcement the company made to the ASX this morning. In the announcement, Tilt reported that its Waipipi Wind Farm, located in South Taranaki, New Zealand, has now been completed. The 133-megawatt farm has 31 completed wind turbines. All 31 turbines are now in a position to export power to the grid.

The Waipipi Wind Farm is the company's largest asset in New Zealand. It will produce an estimated 455 gigawatt-hours of electricity on average per annum. That's enough to reportedly power 65,000 homes.

It was only back on 12 February that Tilt told the markets that the last two turbines were close to being commissioned for grid exploration, with "construction winding down".

Here's what Tilt CEO Deion Campbell had to say on that announcement:

To safely complete construction of 31 of the largest wind turbines ever installed in New Zealand very close to the original schedule is a  superb result, one not common to many large infrastructure projects and a credit to all involved in the planning and execution of the project. This is despite the site being shut down for 5 weeks due to New Zealand's COVID‐19 pandemic response.

Last month, we reported on how Tilt might be acquired by its major shareholder Infratil Ltd (ASX: IFT). That provided a major boost to the Tilt share price at the time. It seems investors have been reluctant to build on that price momentum after today's announcement.

Tilt shares are now up a healthy 54% since 4 December last year, and up by around 10% since 20 January. On the current Tilt share price, the company has a market capitalisation of around $2.21 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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