Elia Group Elia confirms it will postpone part of Elisabeth Island
On Friday afternoon in a press meeting, the new CEO Bernard Gustin, reconsidered the scope of the energy island. ‘We recommend postponing the second part of the project'. This involves the HVDC cables and transformers that account for about half of the cost of the island, now estimated at EUR 7.5bn. The other half consists of the shell construction and the AC connections to connect two new parks. On 15/1, KBCS cut its TP on Elia from EUR 124 to 85 with a note “Time to reconsider”. We see this as a first step to spread the capex out and reduce the urgent capital needs. We believe that the current cost inflation on the equipment could actually ease over time as more projects are cut and new supply enters the market. Commodity prices like copper have not increased dramatically either. The share price is now locked in a negative speculation circle that can be broken by easing the Capex pressure on the company.Elia System Operator develops, operates and maintains very-high-voltage (380 kV, 220 kV and 150 kV) and high-voltage (70 kV, 36 kV and 30 kV) networks, providing its customers with consultancy and engineering services. Whether in Belgium, Germany or elsewhere in Europe or the U.S., Co. ensures that electricity flows reliably from energy producers to distributors and large corporate customers. Co.'s main activities include transmission operator, system operator and market facilitator, developing and maintaining grid infrastructure, connecting electrical installations to grids, providing transparent access to grids, while taking initiatives to improve electricity market operations.
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