Renta 4 | The Official State Gazette (BOE) has published the order from the Ministry for Ecological Transition and the Democratic Challenge updating the remuneration parameters for electricity production facilities using renewable energy sources, cogeneration and waste.
The new order updates the average annual market price for 2026, 2027 and 2028, as well as the estimated technological adjustment coefficients, the standard number of operating hours and the upper and lower limits for calculating the adjustment value for market price deviations.
As a result, Ence’s biomass plants, both those in its cellulose business and those in renewable energy, will benefit from an increase in their operating remuneration of around €6/MWh. For its part, the Magnon cogeneration plant in Lucena would benefit from an increase in its remuneration for operation of €19.5/MWh.
Assessment: Positive news which, according to the Company’s estimates, should have a positive impact on annual EBITDA of around €10 million in 2026, 2027 and 2028. We do not expect a significant impact on the share price, as the news was announced yesterday when the market was open.
This also confirms the essential role that biomass plays in the energy mix, as it is the only manageable, CO₂-neutral renewable technology that promotes rural development, contributes to population retention in the territory and helps prevent fires. In addition, it can be easily stored and transported, allowing it to be used at times of high demand or when other renewables are not available.
We reiterate our OVERWEIGHT recommendation with a target price of €4.30/share.
