Wind energy stocks plunge after Trump signs moratorium

Donald Trump’s moratorium on wind energy projects in the United States has sent shockwaves through financial markets, with European leaders in the sector suffering sharp losses.

Share:

Donald Trump, newly reinstated as U.S. President, has shaken the wind energy sector with his announcement of a moratorium on new wind farm developments. This policy shift, enacted through an executive order, has triggered significant declines in the stock prices of leading European players, reflecting market uncertainties about the future of renewable energy in the United States.

The decree, fulfilling a key campaign promise, halts the approval of any new wind energy projects during Trump’s term, with the aim of ceasing federal subsidies for the sector. Despite this policy shift, analysts highlight the pressing need for increased electricity production in the U.S., which could maintain demand for renewable energy over time.

Significant losses for industry leaders

Danish wind energy giant Ørsted faced the steepest drop, with shares plummeting 12.88% on the Copenhagen Stock Exchange. The company had also recently announced asset impairments totaling 12.1 billion Danish kroner (€1.6 billion), exacerbating investor concerns.

Other European industry players were also affected. In Frankfurt, Nordex, a wind turbine manufacturer, fell by 1.53%, while RWE, Germany’s leading electricity producer, saw its shares dip by 0.61%. In France, cable manufacturer Nexans, a key player in connecting offshore wind farms to terrestrial grids, declined by 0.98%. French energy giants Engie and TotalEnergies, both involved in U.S. offshore wind projects, recorded respective drops of 0.85% and 0.89%.

Mitigating factors amid strong demand

While the market response was pronounced, some industry analysts believe the long-term impact may be limited. “The demand for electricity in the U.S. is so high that the only projects capable of meeting it quickly are renewable ones,” explained a European industrialist. Renewable energy’s speed of deployment and cost advantages make it an indispensable part of the U.S. energy landscape, particularly given corporate decarbonization commitments.

According to the U.S. Department of Energy, wind energy accounted for 10% of the country’s electricity production in 2023. Projects already underway, initiated prior to the moratorium, may still proceed, though the political climate introduces heightened uncertainty for future developments.

Measured reactions from impacted companies

Responses from major industry players have been cautious. TotalEnergies and Engie, both with active U.S. offshore wind projects, declined to comment on the announcement. However, TotalEnergies CEO Patrick Pouyanné previously stated in November that he did not anticipate major disruptions to renewable energy initiatives under the Trump administration. Engie, which has three offshore wind projects in development representing an exposure of €400 million, appears to remain optimistic about their continuation.

The volatility stemming from this political move highlights the necessity for wind energy players to diversify their markets and adapt to shifting regulatory landscapes, particularly in the U.S.

Ecopetrol S.A. finalises the acquisition of Wind Autogeneración from Enel S.A.S., thereby taking over the Windpeshi wind project in Colombia, with a planned capacity of 205 MW, aimed at the Colombian oil group's energy self-consumption.
Oceanic Wind Energy Inc. and Coast Tsimshian Enterprises Ltd. secured an exclusive investigative use permit in the Hecate Strait, paving the way for Canada's first major offshore wind project, targeting capacity of up to 700 MW.
German manufacturer Nordex will supply 13 N163/6.X wind turbines to developer SAB WindTeam for a 91 MW wind farm in Brandenburg, with commissioning scheduled for early 2027 and an extended 20-year service agreement.
EDF is delaying the start-up of the Calvados offshore wind farm by more than two years, citing extended adjustments to a drilling tool vital for installing the sixty-four monopile foundations off Courseulles-sur-Mer.
German company NeXtWind signs historic €1.4 billion debt financing to accelerate expansion and modernisation of its onshore wind farms and reach a total capacity of 3 GW by 2028.
Energy company TGS has won a major high-resolution geophysical imaging contract for offshore wind site characterization in Norway, strengthening its position in this rapidly growing market.
Iberdrola Australia secures crucial approval from Australian authorities to begin metocean studies for its 3GW Aurora Green offshore project off the coast of Victoria, marking a decisive stage in its development.
ENGIE begins full operation of the Red Sea Wind Energy wind farm in Egypt, increasing its capacity to 650 MW, four months ahead of schedule, now powering over one million homes in the region.
Tokyo Gas, through TOWII Renewables, a joint venture with EWII, purchases two onshore wind projects developed by Finnish company Puhuri, totalling 74.4 MW, marking its expansion beyond the Danish market.
The European Investment Bank grants EWE AG historic €450mn financing for the installation of 2,600 km of underground power lines and the upgrade of over 1,100 substations in Lower Saxony.
Japan’s Ministry of Industry and Siemens Gamesa Renewable Energy launch a strategic partnership to develop local offshore wind supply chains and strengthen the country's industrial competitiveness in this energy sector.
Energiekontor AG confirms financial close for the Nartum wind farm, adding 23 megawatts to its owned portfolio and starting the construction phase in the Rotenburg district, Lower Saxony.
Airloom Energy begins construction of a pilot site in Wyoming to test an innovative turbine aimed at enhancing American energy security in the face of anticipated growth in electricity demand.
ACCIONA Energía transfers the San Juan de Marcona wind farm to Luz del Sur S.A.A., a major player in Peru's energy sector, for up to USD 253 million, pending necessary regulatory approvals.
German operator Encavis AG strengthens its portfolio by acquiring two wind farms in Lower Saxony and Saxony, totalling 59 MW, in a transaction with Energiequelle GmbH, thereby expanding its renewable energy assets.
Ocergy officially launches an industrial project aiming to install by 2028 a new-generation floating wind turbine of over 15 MW, in partnership with EnBW, Kyuden Mirai, and TEPCO Renewable Power.
France officially commissions its first floating wind farm, consisting of three turbines with a combined capacity of 25 megawatts, introducing strategic technology in the Mediterranean, vital for national energy goals.
Inaugurated on 20 June, the five-turbine plant of wpd onshore France feeds 18 MW into the grid and unlocks new tax revenue for four Côtes-d’Armor municipalities.
Statkraft refocuses investments on flexible Nordic hydropower and reduces commitments in offshore wind and hydrogen to lower operating costs, amid an uncertain economic environment and pressured profitability.
Suzlon Group receives third consecutive order from AMPIN Energy Transition to supply 170.1 MW of wind turbines for a project in India's Andhra Pradesh state, strengthening their strategic industrial partnership.