Acciona Energía starts construction on the MacIntyre wind power complex, with 1.026MW capacity and an investment of €1.300 B

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Intermoney | According to press reports yesterday, Acciona Energía (ANE) (Buy, Target Price 34 euros/share) has begun construction on the wind power complex MacIntyre. This is the largest one in Australia, with a total capacity of 1.026MW and an associated investment of 2 billion Australian dollars (1.3 billion euros).

The MacIntyre complex consists of two wind farms: MacIntyre (923MW), owned by Acciona Energía (70%) and Ark Energy (30%), on which work has already started, and Karara. This is owned by the Queensland public utility, CleanCo, which will also handle its operation. The company expects to complete the construction of the complex in 2024. This is thanks to an acceleration of the project currently underway which allows for the delay caused by Covid-19 and associated supply problems to be made up.

Valuation:

This is one step further in the expansion of Acciona Energía’s installed capacity. We expect this to grow by some 7.000 MW between 2020 and 2025e, slightly less than the guideline given by the company of some 9.000 MW. It is inevitable that delays will happen due to the current supply difficulties and the increase in costs. However, we still think it is feasible that Acciona will achieve our capacity estimate, given the new developments in the US and Brazil, amongst other countries. On the other hand, we believe that the rise in raw material prices would imply an improvement in the sale prices of energy in the long term, particularly in the US and Spain. Acciona Energía and its parent, Acciona (Buy, TP 210 €) will release a trading statement on May 12.