Renewable energy stocks on both sides of the Atlantic enjoyed a boost this morning, following the ‘blue wave’ of Democrat victories in the United States, which raises hopes of a shift in policy towards the renewables sector.
At the time this article was posted, Danish wind energy firm Ørsted’s shares were up 9.17%, while wind turbine manufacturer Vestas’ shares were up 5.85%. In Germany, meanwhile, SMA Solar shares were up 12.15% at the time of publication, while Nordex was up 6.8%. Elsewhere, Portugal’s EDP Renováveis was up 4.90%, while Spain’s Iberdrola rose 2.26%.
US renewable energy stocks also climbed on expectations of a potential shift in policy. First Solar shares were 6.6% higher at the time of publication, while Plug Power was up 5.67%, following an earlier boost that saw its shares increase by more than 10%.
Also in the US, Sunrun was up 5.99% and FuelCell Energy was 2.32% higher. However, SolarEdge Technologies, which initially enjoyed a share price boost, was down 14.17% at the time of publication, and Bloom Energy Corporation was 0.59% lower.
As Bloomberg noted, the trend was also evident in Asia, with gains for Hanwha Solutions Corp., HD Hyundai Energy Solutions Co. and OCI Holdings Co, among others.
‘Long-term economics’
According to Barclays analysts, quoted by Bloomberg, the sweeping victories for Democrats in both House and Senate races, in defiance of the Trump administration agenda, “potentially reduces the risk of further political interference with renewable energy incentives and provides greater protection for the long-term economics of US wind, solar and battery storage investments.
“This should help ease investor concerns around regulatory uncertainty, support confidence in future project returns and potentially drive a reduction in the risk premium applied to US renewable assets.” Read more here.
