Renta 4 | Iberdrola (IBE) has signed with Triconti ECC Renewables and Stream Invest Holding an option allowing it to enter the Asian country with 5 marine wind farms, the total capacity of which would reach 3,5 GW. Triconti is the biggest independent wind energy developer in the Philippines, while Stream Invest Holding is a Swiss renewable energy group.
All the projects come with an assured service contract with the Philippine energy department and will be developed jointly with these companies.
The Philippines has a national renewable energy plan (NREP) via which it hopes that 35% of energy produced in 2030 will be renewable, risising to 50% in 2040. Ratings agency S&P has given The Philippines a BBB+ rating, with average annual GDP growth seen at over 6%, estiimating that the demand for electricity will grow at similar rates until 2040.
Valuation: This is positive news which allows the group to continue to diversify geographically. That said, we believe the impact is limited. We recall that Iberdrola has marine wind power assets in operation, a pipeline and assets in preliminary phases which total 35 GW, (currently it has 37,4 GW renewables in operation and a total pipeline of 81,5 GW), in countries like the UK, the US, Germany, France, Poland, Sweden, Norway, Taiwan, Japan, Korea and Brazil.
Target Price: 12,73 euros. Recommendation: Overweight