Published by Global Banking and Finance Review
Posted on July 2, 2025
By Jesus Calero and Marleen Kaesebier
(Reuters) -Shares in European renewable energy companies rose on Wednesday after the U.S. Senate passed on Tuesday a revised budget bill that was more positive for wind power compared to an earlier version.
"Last-minute changes provide significantly better conditions for the wind industry compared to the previous draft," Sydbank analysts say in a research note.
U.S. President Donald Trump's "Big Beautiful Bill" makes it harder to develop wind and solar energy projects in the U.S. by effectively phasing out renewable energy tax credits after 2026 if projects have not started construction.
Wind and solar energy projects whose construction starts after that must be placed in service by the end of 2027.
But the revised Senate bill now excludes projects starting construction within the next 12 months from the deadline.
Shares of Danish wind turbine manufacturer Vestas jumped around 10% as of 0837 GMT, while its German peer Nordex rose some 2%.
Vestas and other renewable energy stocks in Europe have been sensitive to the news around the bill this year. The Americas accounted for about 39% of Vestas' revenue last year.
Citi analysts said in a note that the revised text removes a 2027 "cliff" and essentially extends the U.S. cycle into 2030.
"We see significant incentives for developers to place orders no later than H1'26 in order to lock-in credits for in-service from 2028," they added.
Danish offshore wind developer Orsted and Portuguese renewable energy firm EDP Renovaveis rose between around 3% and 5%.
German utility RWE, which is also the world's second-largest developer of offshore wind farms, inched about 1% higher.
German solar power parts supplier SMA Solar jumped about 12% to its highest price since March.
(Reporting by Jesus Calero and Marleen Kaesebier in Gdansk, editing by Milla Nissi-Prussak)
