Shares in Vestas Wind Systems A/S plunged after U.S. voters unexpectedly propelled Republican nominee Donald Trump to the presidency, sparking concern that the renewable- energy industry will face future political headwinds.
The world’s biggest maker of wind turbines fell as much as 14 percent and traded 6.6 percent lower at 440.10 kroner as of 12:50 p.m. in Copenhagen. Stock of the Danish company already lost ground last week after U.S. polls tightened, bringing this year’s declines to about 10 percent.
“The U.S. is not the only market in the world, but it’s important for us,” said Chairman Bert Nordberg by phone. “It doesn’t have with us to do that the stock is jumping up and down -- we have reported growth and profit.”
Trump has been vocal about his climate skeptic views, tweeting that he believes that global warming is a hoax created by China. He also tried to get an offshore wind project canceled near a golf course he owns in Scotland, losing a two-year legal battle in July.
Nordberg expects the incentive for wind power known as the production tax credit, or PTC, to stay in place for the next five years. The renewable energy may also play into the politician’s protectionist agenda, as the electricity will be produced within the country’s borders, he said.
“I think Trump has a lot of other things to deal with right now rather than wind energy,” the chairman said. Analysts had already guided investors in Vestas to expect price shocks depending on the outcome of the Nov. 8 election. Bloomberg Intelligence estimates that about 41.3 percent of Vestas’s revenue last year came from the Americas.
“The Vestas share reaction is a result of concerns that Trump will focus more on fossil fuels,” Otto Friedrichsen, equity strategist at Formuepleje, said by phone after the result was clear. “Now there’s concern how Vestas will perform in the U.S. under a president who’ll be more interested in looking out for the country’s coal industry.”
According to an Ernst & Young LLP survey published last month, the U.S. stands to lose its position as the top-ranked renewable-energy market for investors under a Trump administration.
Trump has made clear “he hates wind turbines and will do what he can to fight them,” Jacob Pedersen, head of equity analysis at Sydbank, said earlier this month.
Hannah Pingree - Director of Maine's Office of Innovation and the Future
"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."
Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT
******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********
(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/
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