Good morning. Buenos días. This is the results presentation for ACCIONA Energía 2021 results. I'm José Manuel Entrecanales, Chairman. On my right, Rafael Mateo, CEO. On my left, Arantza Ezpeleta, Chief Financial and Sustainability Officer. Here in the room with us, a few of our top executives who will be addressing some of your questions, should that be necessary. It has been a successful year indeed, despite a complex environment. Undoubtedly its key event has been the IPO. Indeed, one of the most important strategic milestones in our history at the time when we are entering a new phase for the renewable energy industry.
As I repeatedly mentioned in our IPO roadshow, we started this industry in its infancy period back in the 1990s, then followed by its adolescence in the early 2000s, and finally are living its adulthood with a company exceptionally well-suited to tackle the multi-decade growth opportunity that derives from global decarbonization objectives. The IPO was indeed a catalyst for ACCIONA Energía, as it will facilitate realizing our full potential by significantly de-leveraging and letting us achieve investment-grade ratings, presenting a simpler, clean-cut story for both credit and equity investors, enhancing our ESG profile and significantly reducing our cost of capital, which we estimate has been already in the north of 100 basis points.
Our financial results for the year are better than we forecasted, despite unusually low production and almost full hedging of the Spanish market. EBITDA was up 25% over last year, 4% above our market consensus. Net profit up 77% over 2020, consistent with market perception, market consensus. We invested in excess of EUR 800 million, which was 42% higher than the previous year. The year before, obviously, we had to optimize our cash management in the pandemic context. Still below market. This year, execution or CapEx was still below market expectations as a result of global tensions in the supply chain.
We ended up with a stronger investment-grade leverage ratio of 1.83x net financial debt to EBITDA, which is, as I say, significantly below market consensus and including our initial expectations. The last six months since the IPO have been a busy period with plenty of challenges and significant opportunities. The decarbonization trends continue to accelerate despite considerable industrial tensions arising from the post-pandemic global economic recovery, and who knows if now from geostrategic tensions. Given the somewhat crowded renewable energy development sector, we believe these challenging moments actually constitute a competitive advantage for well-capitalized, experienced global renewable energy companies such as ACCIONA.
Despite higher inflation affecting equipment cost, transport and logistics, the high power prices, best-in-class procurement capacity, and large operating asset base put ACCIONA Energía in an advantageous competitive position. Simultaneously, strong demand for our clean electricity supply and, to a great extent, flight to quality from clients who absolutely need to honor their decarbonization pledges, together with scarcity of mature projects in the market, place us as one of the leading signatories of PPAs in the world. PPAs prices are also improving gradually as clients accept they will have to pay some degree of a premium to secure firm, reliable, non-emitting electricity supply. Risks and challenges, there are some. The regulatory environment is volatile in a number of markets, and supply chain disruptions continue to test our execution capacity.
We are, however, actively managing our well-established relationship and profound knowledge of the global supplier network, hence minimizing the impact of rising equipment costs, delivery delays, and logistic bottlenecks. As for higher CapEx cost and return pressures, in general, higher PPA prices are offsetting this trend. Global decarbonization policies remain supportive. Countries accounting for 80% of the global emissions have committed to net zero by 2050. Social awareness continues to mount, and consumer demand for non-emitting electricity and energy efficiency remains very strong. There are undoubtedly significant hurdles to a speedy energy transition, such as growing not in my backyard effect, slow permitting, grid access, queues or frequent and unpredictable curtailments.
We would see that some of these risks require policymakers, sector agents, grid developers to have a very active coordinated action in order to continue the decarbonization process. Despite asset prices remaining high, deal flow for potential corporate transactions has boomed as a result of, at least partially, ACCIONA Energía's IPO, with higher visibility of the company, a more competitive cost of capital, and a clear perception by the market of a stronger balance sheet and the existence of a stock currency. The Eqinov acquisition, Cargacoches, and some moderately mature pipeline acquisitions recently are good examples of this pipeline of this movement in corporate transactions. 2021, we'll probably remember as the takeoff year of green hydrogen.
We once again are pioneering this revolution with our first green hydrogen project in Mallorca, already in production, and our joint venture with Plug Power, and a healthy pipeline of new projects in our key hubs. To finish, looking ahead to 2022, and with all the caveats of the growing geopolitical tensions, it appears it could be also a good year given the strong commodity price environment, the commercial strategy hedges that we have been implementing in recent months, and the strong PPA demand. In this context, we expect a healthy delta relative to 2021 EBITDA. In terms of execution of our five-year plan, our most up-to-date program sees delivering close to 1 GW of capacity additions during 2021. This is approximately running six months behind schedule, mostly due to supply chain and network tensions.
We do expect, however, to have over 2 GW under construction at year-end and exceed our 2023-2025 capacity additions targets to reach the 20 GW global installed capacity objective by the end of the period 2025. We have added recently around 1.5 GW of incremental pipeline in the U.S., Brazil and Peru, some of it ready for construction and the rest with a time horizon of 12-18 months. These and other possible additions should contribute to maintaining the momentum in the plan despite the short-term delays. As I say, the environment is not devoid of short-term challenges. We are here for the long run, and we remain committed to our strategic goals.
There is a lot to keep us busy in 2022 to take advantage of a renewable energy market that is increasingly attractive, with huge untapped growth potential and strong pricing trends. Before leaving the floor to Rafael, I would like to mention that the board has proposed a dividend of EUR 0.28 per share, implying 25% payout ratio, consistent with the dividend policy that we outlined in our IPO. Thank you very much. Rafael, the floor is yours.
Thank you, José Manuel, and good morning to you all. I wanted to start first with the key highlights for the year, for 2021, some of which has been covered by José Manuel. In terms of financial results, 2021 has been a very strong year, better than we expected, with double-digit growth across the P&L. EBITDA is up by 25%, reaching close to EUR 1.1 billion, and the new capacity additions have been particularly profitable as the results of the Texas event early in the year in the U.S., and the Spanish business growth with the higher levy rebate and faster payback in the regulated business. Although our financial hedging strategy has limited the capture of high power prices. We have reached for the first time the 20 TWh mark in terms of consolidated output.
Lower financial charge has been another important driver for the profit growth, showing the benefits of our new capital structure. During 2021, we added 557 MW of additional capacity, mainly in Chile, in Mexico, and Australia. We have 700 MW under construction at the end of December. I will review our pipeline and construction plans in a moment. We have also been making good progress in our green hydrogen strategy, both in Mallorca project and also in our joint venture with Plug Power. From the balance sheet perspective, our net debt and leverage is better than we expected and is showing our important capacity to grow. We are particularly pleased with our funding activity on the back of the investment-grade ratings, obtained immediately after the IPO, becoming today a frequent issuer of the green bonds in the European market.
We have limited refinancing needs in 2022 and a high proportion of fixed debt. In the next slide, in slide nine, you can see the status of our pipeline in the context of our growth targets. Our current pipeline amounts to 17.4 GW, plus another 33.3 GW of longer-term opportunities. The secure and under-construction portion that sits including the capacity added in 2021 increases from 3 GW to 3.7 GW, with some projects as Red-Tailed Hawk in the U.S. or San Juan de Marcona in Peru or in a small project in the Caribbean. All these new opportunities are projects with short-term construction start dates or already under construction.
I would also like to highlight the entry into a new market, Brazil, with the Sento Sé project project, a 100 MW wind farm in the advanced development bucket, with construction start in 2023, subject to obtaining its interconnection permit as planned. We aspire to make Brazil into a multi-gigawatt hub in the next very few years. Finally, we have also been boosting the longer-term pipeline with European projects to keep fueling our growth beyond 2025. Moving on to slide 10, we show our current construction targets. In the appendix, you can find the table with the summary of the 3.7 GW that are secure or under construction or have already been installed in 2021.
For 2022, our current expectation is to add 800 MW of new capacity in 2022, and we expect to have around 2 GW under construction by December 2022. That should give a good degree of visibility to our 2.6 GW target for 2023. You can find in the slide the individual projects that we're expecting to be under construction as of December 2022. The supply chain disruption is making some of our project schedules slipping into the next year. But we are increasing our near-term and medium-term pipeline to compensate and to give further robustness to our 2025 targets. In 2022 and 2023, in aggregate, we will add 3.4 GW, not too far from our expectation before the supply chain disruption appears on the scene.
On the slide 11, one of our key priorities at the moment is mitigating the short-term impacts and potential medium-term risk associated with the global supply chain disruption. The market environment remains challenging, with commodities remaining volatile at peak prices, coupled with the current situation in the shipping and logistics market. PV module prices are being maintained despite lower polysilicon prices in recent weeks and growing manufacturing capacity. In the U.S., the Suniva tariffs for Chinese modules was extended. We have been working hard to reinforce our supply chain strategy in the context of unprecedented level of volatility.
In the slide, you can find some of our key initiatives that are including a tender for 1.5 GW of modules for the period 2023/2024, as well as a shipping contract for deliveries to Europe from Asia with one of the major operators. We have also agreed for the MacIntyre, one of our largest projects in the portfolio. We are containing the impact of higher cost and delays in our current CapEx at hand, which represent around 2.5 GW of capacity for the period 2022/2023. We estimate that the overall CapEx for this project in aggregate has increased mid-single digit relative to our initial pricing. We will mitigate this extra CapEx through the balance of plant efficiencies and lower cost of financing.
In the medium term, we believe that increases in renewable energy project investment cost will be gradually incorporated to the PPA and to the auction prices. In fact, in the slide 12, the PPA market is accelerating the demand for additional PPAs, driven by corporate ESG objectives. At the same time as demand increases, there is growing scarcity of new projects in the market to supply that energy, given the supply chain and the permitting delays. We are seeing today industrial demand shifting to contract with existing renewable plant as opposed to new projects, exactly because of the scarcity of projects that I have just mentioned. This is opportunity, a good opportunity for us to contract the Spanish volumes at a very attractive medium-term prices. Prices are moving up, based on higher demand, higher CapEx costs, ensuring spot prices.
The customers today are accommodating the expectations gradually to this new environment. We are seeing PPA price discussions and negotiations in the Spanish and in the European context for greenfield projects as producers moving up by 20% or 25%. Our supply business continues to grow in terms of volume, in terms of customers, and we are seeing growing demand for long-term contracts given the current volatility in the power markets. We are accelerating the deployment of the supply business strategy as a hedge for our own generation. In slide 13, we have outlined the key developments with respect to the new businesses initiatives and the new technologies. On the green hydrogen front, we are very proud of the start, the operation of the Mallorca project, the first of its kind in Southern Europe and the first supply contract with a retail leader company.
The ACCIONA Plug joint venture continues to work on developing its first utility-scale centralized production and supply facilities that we call hydrogen valleys, and also on-site projects for large industrial clients. We are expanding our green hydrogen activity to other countries, and we have already obtained financing in Chile, for example, to develop a new project of hydrogen in Bahía Quintero . With respect to the offshore activity, we are working with SSE on the Poland, and we are looking at the floating offshore technology that is in the space today, less crowded and open for grabs with no clear winners yet.
On the energy-as-a-service business, providing full decarbonization solution for our customers, we have expanded our businesses through the acquisition of Eqinov, a very successful French operator in the energy efficiency and flexibility capacity in the markets, as well as a fast and super-fast electric vehicle charging company in Spain. Finally, on innovation, we would like to highlight the development of our blockchain technology to trace the green origin of the hydrogen for our customers, as well as the first storage facility in Spain using second life batteries from electric vehicles. Now, I'd like to hand over to Arantza Ezpeleta, Chief Financial and Sustainability Officer, for a review of the financials and the operations of the year.
Thank you, Rafael, and good morning. On slide 15, you can find the key financial and operating highlights of the year. Revenues grew by 40% to EUR 2,472 million on higher generation as well as energy supply revenues. EBITDA increases by 25% to EUR 1,086 million, supported by both the Spanish and the international businesses. Earnings before tax as well as net profit grow by more than 70%, boosted by operating profit growth as well as lower financial charges. Net investment cash flow amounted to EUR 819 million, and net debt stood below EUR 2 billion, leaving the gearing ratio below 2 x, better than we initially expected, due to a slightly lower investment and good cash flow generation at the end of the year.
In terms of the operating metrics on the right-hand side, the consolidated capacity grew by 6%, while the consolidated output by 3%. Our average achieved price increased by 19% to EUR 75.5/MWh, driven by Spain and Texas. In slide 16, we show our ESG highlights and key environmental and social performance metrics. Our vocation is to position ourselves as a climate leader, strongly aligned with the European Union taxonomy for low carbon activities. The company has gone through the S&P's CSA rating process, obtaining a great result, and we will gradually obtain ratings from other key ESG providers as a standalone company. We have rolled out our own sustainability master plan to 2025, with the aim of reducing our environmental footprint and boosting our positive impact.
On the social metrics front, we have improved the ratio of women in manager and executive positions and our social impact management metrics. The accident frequency index has increased from the previous year. However, this is the second highest result ever, and we have been reducing the number of accidents for 11 years in a row. On the environmental side, 100% of our CapEx is aligned with the European taxonomy. Scope 1 and 2 emissions fell year-on-year to 14 million tons. We have increased the proportion of waste recovered to 97% and have planted close to 75,000 trees as part of our nature-based solutions commitments related to our syndicated loan facility.
In slide 17, you have more detail on our net investment cash flow of EUR 819 million, with a breakdown of the ordinary CapEx of EUR 614 million, representing the investment from a fixed asset perspective and the net movement in payments to CapEx providers of EUR 205 million related to last year's cash flow management. The majority of the CapEx is concentrated in our five hubs and includes the increased ownership in ACCIONA Energía Internacional. In slide 18, you can see the cash flow and movement of net debt during the period.
Operating cash flow amounted to EUR 792 million, almost offsetting fully the net investment cash flow of EUR 819 million during the period. I would also highlight the capitalization of the intragroup debt for EUR 1,859 million in preparation for the IPO, and the dividend paid to our parent company in April of EUR 100 million corresponding to the 2020 net result. The intragroup capitalization is therefore the main driver for the reduction of debt in the company, which, including the IFRS 16, amounted to just under EUR 2 billion. In the next slide, you can find more detail about the net debt position.
I would highlight that the average cost of corporate debt stands at around 1.2%, while the project finance debt is much more expensive given the currency denominations and the circumstances when these old structures were arranged. Following the recent issuance, our average cost of corporate debt is around 0.6%. With no further interest rate increases, we expect broadly similar or lower cost of corporate debt in 2022 relative to the 1.2% in 2021. How much lower will depend mostly on how much we do in U.S. Dollars and Australian dollar, which as you know are more expensive. With respect to the average maturity of the debt, as of December, it stood at 3.55 years, but with the 10-year bond issued in January, this would become 5.2 years.
We are very pleased with our two first green bond issues, not just because of the very competitive cost achieved and the way the transactions turned out to be even more successful than we envisaged, but also because we have now established a secondary curve. The issue of these bonds have increased the proportion of fixed versus variable, which as of December was 43%, but with the new bond moves to 64% on a pro forma basis. During the rest of the year, our strategy is focused on increasing the share of U.S. dollar and Australian dollar in our debt mix to better reflect the underlying asset exposure. In the appendix, you will find more detail about our liquidity and maturity schedule. In the next few slides, I would like to summarize the operating performance on the Spanish and international generation businesses during the period.
In slide 20, we have included an overview of the power markets in Spain with the average full price in 2021 increasing to EUR 111.9/MWh, more than three times the record low prices in 2020 due to the pandemic. I won't go into the drivers for this huge increase in the power price environment, as they are well understood by everyone. We have included some statistics on electricity demand, the production mix, hydro reserves, and commodity prices that we hope you find interesting. In slide 21, you can find the key drivers of the generation revenues in Spain. Starting with the consolidated output, it fell by 3%.
The non-regulated production exposed to wholesale markets represented 43% of total, and was in its majority hedged as part of our prudent commercial policy in the context of the recovery of prices following the worst of the pandemic in 2020 and early 2021. We increased our hedging levels for 2021 substantially relative to what we had been hedged the year before. While the Spanish wholesale price tripled to EUR 111.9/MWh, our realized average price increased by 27% to EUR 83.6/MWh. The price is lower, and so is the year-on-year growth as a result of hedging and regulatory banding. Regulatory income is flattish year-on-year, which also contains the growth.
The average price of our financial hedges in OMIP for 2021 was EUR 51.8/MWh, reflecting the prevailing power price environment in 2020 and the early part of 2021. The gas clawback impact in Q4 , 2021 was EUR 6 million with very limited impact and spread over small unhedged volumes. You can see this with more detail in slide 34 in the appendix to this presentation. The combination of regulated and non-regulated revenues have resulted in an increase of 24%. With respect to the regulatory banding mechanism, the Spanish Securities Commission issued in October last year a communication stating its criterion for the accounting of the banding mechanism, given that there was no homogeneous accounting across the listed companies and accounting firms, given the complexity of the issue. We have adopted the new guidelines issued by CNMV in our financial statements.
Finally, I would like to mention our levels of hedging for 2022. In Spain, we have hedged 3.35 TWh in OMIP and a further 0.6 TWh through sales of generation to end customers through our supply business. That is a total of 3.9 TWh at 123 EUR/MWh. We may increase our 2022 hedging volumes further according to our risk policy, and we are now increasing our medium term hedging through financial contracts and increasingly using our supply business customer base. In slide 22, you can see the main financials for the Spanish business.
Revenues including energy supply are up by almost 50%, and EBITDA grows to EUR 531 million by 48%. The biggest drivers are the faster payback in the regulated fleet, as well as the hydro levy rebate, as already discussed. In slide 23, we show an overview of drivers for our main hubs in the international business. We draw your attention to the ERCOT prices during February and the strong increase in the global commodity market. Moving on to slide 24, the production from our international fleet increased by 9% on a consolidated basis, thanks to new capacity and operation, more than offsetting the 7% decline in production for the existing fleet. The U.S. is down due to the weather incidents as well as some curtailments, while Mexico and Chile are up on new capacity.
In terms of power prices expressed in euros, the average price increased by 12% to EUR 68.1/MWh, driven by the U.S. market, with lower achieved prices in Mexico and Chile, with the evolution of the U.S. dollar, which has depreciated by around 3%. Total generation revenues in the international fleet increased by 23% to EUR 718 million. In slide 25, you have the full revenue and EBITDA breakdown for the international business. New capacity in the U.S. market with exceptional ERCOT prices are the main reasons behind the growth in EBITDA of 9% to EUR 555 million, offsetting low output and a slightly weaker U.S. dollar. To conclude the presentation, we would like to provide you with our current expectations for the year 2022.
We expect another year of solid double-digit growth in EBITDA to be driven mostly by the Spanish business, where achieved wholesale prices are expected to be higher, whether already hedged in accordance with our commercial policy or still open. In terms of CapEx, we expect net investment cash flow of EUR 1 billion-EUR 1.2 billion. We also expect net debt to be relatively flat compared to 2021, given the strong cash flow expected in the current environment. As a result, net debt to EBITDA ratio at year-end should be lower than last year. Thank you, and let me hand back to José Manuel.
Okay, thank you, Arantza. Now we're going to go on to the Q&A session. We are receiving a number of questions. Raimundo Fernández-Cuesta is arranging the questions and passing them on to us. I will pass it on to the team. The first question comes from Óscar Nájar in Santander and Álvaro Navarro in Mirabaud. It's about the weak numbers in America and Australia, and what do we think about output, normal load factor, and indications about level of prices? Rafa, please.
Thank you, José Manuel. Answering your question about the output in Australia and Americas this year, it was with a lot of weather incidents, some curtailments in both countries, in Australia and also in the U.S., and lower wind resources than expected. Also, in Mexico, we had lower resources, lower wind hours than expected. Additionally, we had unavailability during almost one month in January because of fire in a Mexican substation. About the normal load factor and prices, the normal load factor in the U.S. should be around $35/MWh. In Australia, around AUD 30/MWh. The normal prices in the U.S. should be around high $30s/MWh . In Australia, around AUD 40/ MWh.
Okay, thank you, Rafael. The second question comes from RBC and Mirabaud, and it's about the MacIntyre projects in Australia and solar PV projects in the U.S. that have experienced some delays in terms of permitting, equipment financing, and PPAs. Please, Rafael, go ahead on MacIntyre, and then we can hand over.
Okay, about the MacIntyre project in Australia, we are finalizing all the permitting. Yes, we have received two days ago the final full permitting. That was the EPBC Act, the Environment Protection and Biodiversity Conservation Act 1999. With that, we are fully ready to start the construction that we will start physically on site in the next couple of weeks. About the other part of the question, please, Joaquín Ancín Viguiristi, Engineering Construction Manager, will have the answer.
Thank you, Rafael. Yes, related to our projects in the U.S., we have two projects already under construction, High Point and Fort Bend. We have adapted our schedules, and we have daily contacts, let's say, with our PV suppliers from China. We have adapted our schedules, and now, I mean, we can already confirm that these two projects will be finished during the year, as we are very well advanced position. For the two projects that are going to start in the next few months, Union and Red-Tailed Hawk, we are also having daily contacts with our suppliers, trying to adapt, as Rafael was mentioning, schedules and costs. We are very close and, I mean,
Well advanced to know that both projects will be as expected, delivered during 2023.
Good. Thank you. As for the next question is from Royal Bank of Canada, and is asking us to update on our hedging for 2022 in Spain, and what would be our strategy if Spanish regulators decide to extend the gas clawback beyond March in terms of hedging. Santi, why don't you take this one, please?
Thank you, Juan. Thank you, José Manuel. Okay, for 2022, we go on with our commercial strategy. Now in, for this year, we have hedged 3.9 TWh at an average price of EUR 123 per MWh. It's a result of some hedges in forward markets, that 3.3 TWh, and other 0.6 TWh closed in long-term contract with final clients. At this level, up to now, we avoid any gas clawback in our portfolio. In case of this clawback regulation is extended, we consider this, we will avoid also. Thank you.
Why don't you carry on with number four, which is also from Fernando Garcia. It looks like we are taking a more integrating approach in our supply business to hedge our own output. It's whether this is a long-term change of strategy. Rafa.
Yeah, let me answer your question about the strategy. Yes, this is something that we have been planning for years. The situation is today we have a base of customers in our supply business of something around 9 TWh per year. It's a fantastic base of customers to secure our revenues with our own generation. We started years ago, and today, this is a structural part of our business. When we are talking about securing 80% of our events of our sales, this is one of the very relevant points to secure one part of them. This is a planned and successful strategy.
There's a question here from JP Morgan, which is the incremental cost that we'll be facing from acquiring assets ready to build or almost ready to build versus organic growth? Arantza, take this one.
Yes, sure. The approach is not very different. We are normally buying projects that are still incipient in its earliest stage of development, with opportunity to add value on our side. There are markets precisely for that reason, where we are not buying development projects, as they are too far from the cost of greenfield. Thus, they don't meet our return requirements, for example, Spain. We are also seeing opportunities in some other markets, such as, for example, in ERCOT, where we are buying very efficiently. Given that we are a trustworthy counterparty closing deals that has existing operators, we are already a player there and with assets under construction. Usually the sellers give us exclusivity, not needing us to compete in an auction, which is a great opportunity.
We've been asked by a number of institutions, Santander, BofA, and then other some others, about what the situation in Ukraine of our assets. We have, as you know, 100 MW of solar PV assets about 100 km northwest of Kyiv. At this stage, we really can't say what the effect will be. It will very much depend on how things evolve.
Yeah, let me add. We have been talking with our team there in Ukraine as of today, early in the morning. We have nine people, local people working there. All of them are safe at home. The plants start because they are remote control, and they start automatically early in the morning, reducing load half an hour ago because the load factor today or the lower demand today in the country. We are monitoring very closely the situation in a very close contact with our team.
In terms of EBITDA, Ukraine represents EUR 10 million-EUR 12 million on a normalized basis.
Yeah, there is another question from Javier Garrido from JP Morgan about if we are satisfied with the profitability of our Australian assets and what should drive an improvement in the contribution of the existing assets in Australia to our P&L.
Let me say that in 2021, one of our wind farms in Australia, Waubra Wind Farm, was expiring the PPA and was recontracted in the different level of PPA prices. In the case of our assets in Queensland, we are seeing better prices and better rate stability. For our projects in Australia, where we have a very wide pipeline, we're expecting our spread of 200 basis points over the local WACC.
There's a question here from Oscar, Santander about what we think of the possible tax in the Union.
What do we think about the possible tax in the European Union for all generations? How could it impact ANE? Well, it's difficult to say. We don't know how it will impact. We don't know how the tax will be applied. No answer for that one. Sorry, Oscar. Mirabaud asks about the profitability of the supply activity in Spain in 2021. That's a very wide question.
Santi or Javier, do you have the microphone with you?
Yes. The question is about the profitability of supply activity in Spain in 2021. We have to say that the majority of the energy we sell on the supply side to our customers is being acquired. Well, it's sold on pool or pass-through, which means it's indexed. We are not taking power pricing risk there. Most of that energy we are acquiring simultaneously when we close the supply contract with our customers. However, there is still a very minor percentage of that which is open. Typically, our clients, one thing is the volume of electricity they wish to contract, and it's different, the amount they actually consume. There's always a small mismatch there because we are not covering 100% of the contracted volume.
In circumstances such as we have seen last year with a huge volatility in prices, there's an amplifying effect of that small percentage. However, as has been mentioned before, those contracts that we are selling on fixed prices, we are also looking at closing internally with our own generation, and that is a very good mitigant, price risk mitigant for our own generation.
Okay. Thank you, Javier. There's a question here from HSBC for Rafael Mateo on Brazil. Please provide more information and color about the Brazil hub. What role would it play in the 2025 to 2030 targets? Will all the growth be in the wind? Those are questions that I think could be best dealt by Rafael .
Yeah.
Rafael.
Sure. Good morning. Brazil is getting quite an important market for us. We are expecting to bring online over the period up to 2025, at least somewhere around 1 GW of installed capacity. The idea will be this 1 GW is on wind. We are expecting to still build up a pipeline of somewhere around 2 GW as a normal base in Brazil. The opportunity on PV is also there. As you know, there is a nice hybridization regulation in Brazil. We'll be looking at that also to try to join it with the current assets that we'll be doing there.
Thank you. The next question is from BofA, and it's about our IRR versus WACC spreads. The question is, where do we... If we'd still see the 200-300 basis points for new capacity to 2025. The answer is yes. In fact, we've reduced our cost of capital, as we've mentioned, beyond what we expected. Exactly, we believe it's about 130 basis points. Of course, there are elements to be to make that exact figure. There is some subjective elements of what is included, but it is around those levels. PPA prices are also experiencing some pressure upwards. We believe those margins can be easily achieved.
Not easily, but achieved are as easily as would be in the past achieved today. Hedging for 20. This is from HSBC and BofA, hedging for 2023 and 2024. Santi?
Yes, thank you. Okay, for 2023 and 2024, we continue with our strategy implementing in these years. We will probably have more maintenance processes, so we will increase our volumes. On the other hand, we will increase our hedge by long-term contracts with our clients. For now, for 2023, we have hedged 0.35 TWh in forward markets at EUR 117 /MWh. We have 0.5 TWh closed at EUR 66 /MWh in long-term contracts closed in 2023. For 2024, we are starting with hedging now, mostly in long-term contracts, but we will continue with our strategy of 80/20 strategy that we have had in the last years.
Thank you. Next question is from Goldman Sachs, from Alberto Gandolfi, and it's, "What percentage of our portfolio has revenues linked to inflation, directly or indirectly? Power prices." Arantza, why don't you shed some light on that?
Yes, sure. Just over 80% of the PPAs, feed-in tariffs and PPAs from regulated auctions are indexed. These volumes represent approximately 30% of the total volume and revenues. This does not include the volumes exposed to wholesale prices, which are implicitly commodity inflation-linked and which represent another 20% of the total volume.
Okay. There's also a next question from Goldman Sachs, Gandolfi, about if we can explain more, we can be more specific about how we can add 2.6 next year while having only 2 GW under construction by year-end. If we can provide more visibility on what stage these 2.6 projects are in. What percentage is permitted? What percentage is CapEx secured? What percentage has already been awarded in auctions? It's Rafa and Quincho, I think.
Yeah. I'll begin on the part of how we're which projects are in the granularity. You can find that on page 10 of the presentation. Those are. We are explaining the projects that are comprising 1.9 GW, or the projects that are approved with the CapEx secured and that they are under construction. Then an outstanding 688 MW, that those are projects that are in the process of final investment approval from ACCIONA Energía. Of course, when we get that to an approval, they already with all the permits and on a ready-to-install situation.
Quincho?
Oh, yeah. Sorry, I was just going to mention that the projects, the MacIntyre, San Juan de Marcona, and Escepar projects in Spain and Europe, that will amount to 1 GW approximately. We will have some PV projects in Spain for around 400 MW, and the rest will be the PV in USA, PV in LatAm for the rest of the 1.2 GW. That's what we are planning to construct next year. Of course, not all of that is being closed with all the contracts, but for MacIntyre, as Rafael was mentioning, we are just starting, yes. For projects that we will start next year, we are working on that.
Okay, thank you, Quincho and Rafa. Next question is from Morgan Stanley, and is asking us about the geostrategic tensions potential impact in our 2022 EBITDA guidance. Well, apart from our Ukraine assets, there's no evident, obvious impact. Then again, we don't know what the geostrategic tensions that have started in the recent days and particularly today, what the evolution of that will be. So we don't know that. I am just concerned that there could be an escalation that would have an impact in our operations. I'm just saying that for the sake of prudence. I have no quantification of any sort in that, what that possible escalation would imply. Next question on tax rate from SocGen. What can be expected on 2022 and onwards? Arantza?
Yes, sure. We are expecting between 27%-28%.
Very good. Thank you. Another one from SocGen. What is the hydro output expected for 2022, considering the drought? Who wants to take this one? Rafael, take it.
The production in 2021 was very low production, 1.7 TWh in hydro. The year before was 2.5 TWh and usually the average production is around 2 TWhs. It's very difficult to predict which is the production, but in any case all our hydropower stations are in the mountains north of Spain, where the hydrology is usually better than in the rest of the country.
Despite being difficult to predict how the drought will evolve in the next few months. Next question is from Stifel, Enrico Bartoli, and it's about opportunities in the offshore wind. What are we doing in order to speed up increasing technological competences? Why don't you take it, José
Hi, good morning. On offshore wind, as you know, we're working on the technological side, focused on floating technologies to see how to position ourselves for the upcoming auctions, mainly in Spain and Portugal, where most of the technology is expected to be floating. We're working on two vectors. We're developing in-house solutions together with our infrastructure colleagues. The Argo solution that we talked about at length during the IPO process, which is the gravity-based solution, but we're also developing a couple of semi-submersible and TLP-based solutions that we're testing in canals and as we speak, and we're planning to or working to install full-scale prototypes in the short to medium term. We're also monitoring the market to see what others are developing.
As you know, there's a large number of startups and independent companies that are developing innovative solutions in the floating technology, and we're keeping a close look to see how to position ourselves in the ones that stand out as being most competitive.
Why don't you carry on with the next question, José , which is from Paul Chabran, Kempen, about our acquisition in France and whether that is a first step in the country. It's not actually a first step. We were present in the country a few years ago, and we sold our assets there, but yes, why don't you go ahead and then we'll go on to the next part of the question.
Sure. As you will have seen, we announced the acquisition of a French company called Eqinov, which is an independent leader of energy management and energy consultancy services in the country, particularly active in the white certificate market. We believe that France is a leader when it comes to energy efficiency, market model and market regulation. We think that is a model that will likely be replicated across Europe. Our investment in Eqinov hopes to leverage the knowledge of the company when that model is exported to other European countries, and we hope to position ourselves ahead of our competitors, thanks to that knowledge.
France is a country that we are monitoring more broadly, and we think that the acquisition of Eqinov can help us build that position. As of right now, we are not actively pursuing any opportunities in the generation business in the country, but it's a country that is obviously close to home and could well present a growth opportunity. More focused on the energy services side of things, we think there are important synergies that could be realized from this acquisition by combining Eqinov's knowledge with ACCIONA's balance sheet and strength in providing additional services that Eqinov today cannot provide, and similarly, bringing the knowledge of Eqinov to the Spanish market as I described.
Thank you. As for your second question, whether we're looking at building or acquiring more production assets in France, no. The answer is, at this stage, we're not looking at any acquisitions of generation assets in France. There's a third question from Kempen about how close we are in securing the shipping line from Vietnam to the U.S.
Well, usually, we are in very close relation with the Chinese manufacturer, especially today, all the supply for our U.S. products are coming from JA Solar, from China, manufactured in Vietnam, and they are responsible for the shipping and for the transport from the factory to the final destination.
There's a question here from Paul Chabran also at Kempen on the placement of additional stake of ANE by ACCIONA. Well, this is the ANE, ACCIONA Energía results presentation, so it's kind of a board of ACCIONA mother company decision. It's difficult for me to give you a final decision on that because it's the board's decision. However, I can definitely say that at these prices and given the low leverage that we are at this stage, it is very unlikely that we would be placing any more shares of ACCIONA Energía in the market. Now, there is a question on what the situation in Mexico is. Rafael, why don't you take that one?
Well, we are following the situation with the potential reform on the law that is in the parliament. There are several opinions about how the reform is being discussed today. What we are doing today is to protect our assets and follow the situation. I like to say that we are not having planned investment in the next three years. We were very successful with the existing assets, contracting almost all the energy coming from our existing assets. What we are doing today is to prepare a new portfolio for the second part of the next five years. No risk over the new assets and monitoring the situation in the operating part.
We had about 700 MW of capacity to be added in the 2025 period. I believe at this stage, as things stand, we are not counting on that capacity being put in place. Of course, we expect the situation to clarify itself fairly quickly. It's kind of a months situation. Okay, now from Alberto Gandolfi at Goldman Sachs, what percentage of 2022, 2023 and 2024 CapEx is secure on a fixed cost? Quincho.
Thanks, José Manuel. I don't have the figure. I should take my calculation. Most of our CapEx for 2022 and 2023 is closed. Of course, we have all the contracts, and some of the contracts for PV modules and for wind turbines are linked in some of the specific components to the commodity prices, steels and so. But I don't have here the exact number. For 2024, I will say none of the cost is already fixed. I mean, we are still working with suppliers, and we will be closing this in the coming months or whenever. Sorry, not to be able to be more precise.
We can answer that one directly when later on through Raimundo to Gandolfi.
Of course.
Last question here, because we're exceeding the time, unless there's anything very important that Raimundo wants to ask us, on behalf of the investors and analysts. Gas clawback. If the gas clawback is extended to December 2022, what would be the impact of this clawback in ACCIONA Energía revenues from the 3.95 TWh hedged at EUR 123 /MWh? Santi.
Thank you. If finally the gas clawback is extended at the end of this year, we consider that there is no impact in our portfolio from second quarter to the end of this year. We have higher hedges than the first quarter. In this first quarter, we avoided this gas clawback. We consider we will be impacted by this extension.
Thank you. Well, there's one follow-up question about distributed generation from Óscar Nájar in Santander. Is your approach more for industrial clients, mid-size companies with solar PV rooftops, parking lots, malls? Rafa, maybe take that one.
Yeah. Our distributed generation business is a part of our portfolio that we are offering to our customers. Our concept is to offer to our customers solutions, Energy as a Service. That we are offering today is of course a long-term contract, a PPA, a supply, or in case of they prefer some kind of solution, distributed generation, energy services, hydrogen, any kind of products in the portfolio, mainly directed to industrial customers.
Very good. Thank you very much. Thank you, Raimundo, and thank you to the audience. With this, I think we finish this results presentation. Thank you very much. Bye.