Enagas

Spain's upcoming general election could reshape the country's energy policies, creating opportunities and risks for utility companies, according to Goldman Sachs. In an October 6 report, Goldman Sachs said a potential government led by the centre-right People's Party could introduce more market-friendly energy policies, including greater support for nuclear power, renewable energy and data centre development. Spain's general election is scheduled for November 29, having been brought forward from August 2027, and polls cited by the bank suggest the People's Party could emerge as the largest parliamentary group. Goldman estimates longer operating lives for nuclear reactors could generate an additional €500 million to €750 million in annual EBITDA for each of Endesa and Iberdrola, depending on electricity prices, while a 10%-20% reduction in retail margins could lower annual pre-tax profits at Endesa and Iberdrola by €120 million to €240 million each, translating into estimated 2027 earnings-per-share reductions of approximately 7% for Endesa and 2% for Iberdrola. The bank also warned that a government transition could further delay hydrogen infrastructure investments, creating uncertainty for Sell-rated Enagas, though it expects the overall impact on most Spanish utilities to be neutral to positive.