Iberdrola, Acciona benefit from 15% rise in Spanish spot price to €135/MW due to heat wave


Alphavalue / Divacons| The heat wave now sweeping Europe, and Spain in particular, is causing excessive energy consumption as a result of the increased use of air conditioning systems, driving up electricity prices. The spot price in Spain on Wednesday rose by 15% to €135/MW. This will undoubtedly benefit power generators present in the Iberian Peninsula such as Iberdrola, Acciona, EDP and ERG, with a spot exposure of 15-20%. Acciona has revised down its average price achieved to €100/MWh by the end of June 2023, which has led us to revise down our 2023 EPS, as have several analysts. Provided that the price increase is sustained until September 3Q23 it could be higher than expected, leading to further earnings per share revisions.

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