Vestas Wind Systems A/S and Orsted A/S slumped on the first day of trading after the latest version of President Donald Trump’s spending package proposed a more aggressive phase-out of tax incentives for US wind and solar projects.
If it becomes law, the change would significantly raise the stakes for the industry, putting pressure on developers to speed up timelines or risk losing critical federal support. The legislation also includes a new tax on wind and solar projects that fail to meet strict restrictions against the use of Chinese materials.
Vestas share plunged as much as 6.5%. Orsted A/S fell as much as 4.2% in early trading Copenhagen but later pared some losses. EDP Renovaveis SA, the renewable-energy unit of Portuguese utility EDP SA, also slipped more than 4%.
The latest text from the Senate bill looks “incrementally negative for wind,” according to Citigroup Inc. analyst Martin Wilkie.
In the US, NextEra Energy Inc. is trading 3.1% lower in premarket trading, Sunrun Inc. is 4% lower and Enphase Energy Inc. is 4.8% lower.
