ENGGF - Red Electrica Remuneration Outlook Improved But Enagas Provides Better Risk-Reward
- While it’s good news that even Red Electrica will be punished less than expected by the CNMC, the tariff revision is more important for the long term for Enagas.
- The grid remains an important sink of funds for the renewable revolution, but Hydrogen has changed the narrative more dramatically for Enagas.
- Red Electrica (RDEIY) hit our radars last year when we were looking for resilient business models. Red Electrica has alright exposure through their grid concession, but Hispasat remains an unattractive addition to their topline mix.
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Red Electrica Remuneration Outlook Improved, But Enagas Provides Better Risk-Reward