Power projects driven by new U.S. law not seen until late 2023 or 2024 -MasTec CEO (updated)

MasTec

05/01/2023 19:31

(Adds comments from CEO detailing outlook)
    By Laila Kearney
       Jan 5 (Reuters) - U.S. solar and wind projects driven by
passage of the Inflation Reduction Act likely will not be seen
until late 2023 or 2024, power and renewables construction
company MasTec Inc  MTZ.N  CEO Jose Mas said on Thursday.
    For the first part of the year, renewable power construction
will likely consist of holdover projects from 2022 that were
hampered by supply chain restraints and a federal investigation
into solar panel sourcing, Mas told investors at a Goldman Sachs
conference in Miami.
    "While the IRA is going to lift the industry by a pretty
significant level, it's going to take time for it to start
impacting the market relative to seeing it on people's income
statements and balance sheets," Mas said. The new law, seen as
the biggest climate change package in U.S. history, creates
major tax incentives for clean energy. 
        The supply of solar panels, in particular, has been
struggling to keep up with demand, Mas said. 
  
        "If double the panels were available, then we'd have
double the work because the demand is that great," Mas said. The
majority of MasTec's projected 35% growth in its renewables
business this year will come from solar, he added.   
  
        In 2024, with IRA incentives and planned transmission
line construction opening up new wind corridors, MasTec expects
a jump in its wind-power business.
  
        An investigation by the Commerce Department into whether
imports of solar panels from Cambodia, Malaysia, Thailand and
Vietnam circumvent tariffs on goods made in China slowed work in
2022, Mas said. With the effects of that investigation easing,
many of last year's projects will begin in 2023, he added.
  
        Coral Gables, Florida-based MasTec, one of the largest
renewable contractors in the country, has largely transitioned
its work away from oil and gas to renewable power in recent
years. 
  
 (Reporting by Laila Kearney; Editing by Leslie Adler)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054;))