Renewable energy giants have rejected Trump’s anti-wind policies
US President Donald Trump They hold an executive order after signing during an indoor graduation show at Capital One Arena on January 20, 2025 in Washington, DC. Donald Trump takes office for a second term as the 47th President of the United States.
Anna Cashier | Getty Images News | Getty Images
Renewables appear to be relatively sanguine about US President Donald Trump’s anti-wind policies, which he has described as “absolutely unstoppable” in the process of replacing fossil fuels with electricity-powered products.
Trump’s new promisesGolden age“In his inaugural address to America on Monday, he set a goal on the low-carbon energy initiative.
as if Independent executive orderIn a widely anticipated move, the president temporarily suspended new or renewed leases for offshore and onshore wind projects and halted wind power projects on the outer continental shelf.
“We’re not going to do the wind thing. Big, ugly windmills, they’re going to ruin your neighborhood,” Trump told supporters at Capital One in Washington on Monday. He has previously described wind turbines as an economic and environmental “disaster.”
The moves are part of a much broader energy offensive designed to “unleash” already booming oil and gas production. This included declaring a national energy emergency, promoting fossil drilling in Alaska, and signing an executive order to withdraw the US from the infamous Paris Agreement.
Chairman of the Board of Supervisors, Joe Kesser Siemens EnergyOne of the world’s biggest renewable players appears unfazed by Trump’s aggressive energy agenda. In fact, Kasser considers the policies a “small plus” for the German energy technology group.
Shares of Siemens Energy jumped more than 8% on Wednesday morning, hitting a new 52-week high.
“We have to look at what’s behind all the executive orders and policies. So far, I believe there are many areas where Siemens Energy can benefit,” Keizer told CNBC’s Dan Murphy at the annual meeting of the World Economic Forum (WEF) in Davos. , Switzerland on Tuesday.
While there will be uncertainty in low-carbon energy sectors such as offshore and offshore wind, Kasser said Trump’s actions are unlikely to affect Siemens Energy. That’s partly because 80% of the company’s wind market is in Europe, Keizer said.
“So I believe this is not going to move the needle. I’m more concerned about the European economies and how they’re dealing with a very powerful concept. We may or may not like it, because he’s got it. Some of the national kind of things, but from the point of view of the American people, we’d better have something go,” Keizer said.
Beyond offshore and onshore wind, Keizer says Siemens Energy is well-positioned to take advantage of the “growing” electrification market.
“Think about data centers, artificial intelligence, now we have waiting times on large gas turbines. In fact, customers are coming in, hey can I make a reservation and I’ll pay you for the reservation? Think about it. It hasn’t happened in a long time,” Keizer said.
“I believe the era of electrification has begun. Whether it’s gas turbines or wind or solar or anything else, we’ve got everything, and the customer will ultimately decide. And I believe one should not underestimate, it’s the White House. I don’t buy much (but) the customer does,” he added.
‘Very Optimistic’
Spain’s renewable energy giant Iberdrola was similarly bullish on the path to full electrification, describing the transition away from fossil fuels as “absolutely unstoppable”.
“We are seeing that we are at the best time for electrification,” Iberodra CEO Ignacio Galan told CNBC at WEF on Tuesday.
Galan cited growing global demand for electrically powered data centers, low-emission vehicles, and cooling and heating applications.
A logo on the nacelle of the Martin de la Jara wind farm, operated by Iberdrola SA, in the Martin de la Jara district of Seville, Spain, Friday, April 21, 2023.
Bloomberg | Bloomberg | Getty Images
“All these things require more electricity 24 hours a day. Most of our business in the United States is in this area, which is grids … and the regulation is based on government authority, so I don’t think that has any effect.” Galan said.
“Depending on the law, we will invest more or less in our other businesses,” he said, referring to Trump’s energy policy.
“We are very, very optimistic about the United States and the future,” Galan said.
Wind power problems
Shares of some of Europe’s biggest wind power companies fell after Trump took aim at wind energy plans.
Danish Orsted, who recently announced Approximately 1.7 billion dollars Impairment payments on U.S. projects fell 4.4% on Wednesday morning, extending steep losses from the previous session.
The fast-growing offshore wind sector has had a tough time in recent years, hampered by rising costs, supply chain disruptions and high interest rates.
Wind turbines with heavy lift cargo drones are seen at the Oersted press conference on Tuesday, August 06, 2024 at the offshore wind farms at the Borselle 1 and 2 wind farm in Zeeland, Netherlands.
Nicholas Maeterlinck | Afp | Getty Images
Artem Abramov, head of new energy research at Rystad Energy, said Trump’s energy agenda has essentially reduced the chances of any new offshore development in the US to zero — at least for now.
“The U.S. currently has approximately 2.4 gigawatts (GW) of advanced offshore wind developments that have reached final investment decisions and are under construction, which are unlikely to impact orders,” Abramov said in a research note published Tuesday.
“There is a slight risk in the bad investment climate for 10.5 GW projects that have obtained the necessary permits but have not reached investment decisions,” Abramov said.
“The remaining 25 GW primary projects cannot see any progress under the current administration,” he said.
— CNBC’s Spencer Kimball contributed to this report.
