Renewable energy giants ignore Trump’s anti-wind policies

Renewable energy giants seem relatively optimistic about the US president. donald trumpof anti-wind policies, describing the process of replacing fossil fuels with electrical products as “absolutely unstoppable”.

Trump, who promised a new “golden age” for the United States in his inaugural address on Monday, he quickly pointed to low carbon energy initiatives.

in a independent executive orderAs widely expected, the president temporarily suspended new or renewed leases for offshore and onshore wind projects and paused the leasing of wind energy projects on the outer continental shelf.

“We’re not going to do the wind thing. Big, ugly windmills, they ruin your neighborhood,” Trump told supporters at the Capital One area in Washington on Monday. He previously described wind turbines as an economic and environmental “disaster.”

The measures were part of a much broader energy offensive aimed at “unleashing” Oil and gas production is already booming.. This included declaring a national energy emergency, promoting fossil fuel extraction in Alaska, and signing an executive order to withdraw the United States from Historic Paris Agreement.

Joe Kaeser, Chairman of the Supervisory Board of Siemens Energyone of the world’s largest renewable energy players, seemed unfazed by Trump’s sweeping energy agenda. In fact, Kaeser considered these policies to be a “slight advantage” for the German energy technology group.

Shares of Siemens Energy rose more than 8% on Wednesday morning, hitting a new 52-week high.

“We need to see what’s behind all the executive orders and policies. So far, I think there are many areas where Siemens Energy benefits a lot,” Kaeser told CNBC’s Dan Murphy at the World Economic Forum (WEF) annual meeting. in Davos. , Switzerland on Tuesday.

There will be uncertainty for low-carbon energy sectors such as onshore and offshore wind, Kaeser said, before adding that Trump’s measures are unlikely to directly affect Siemens Energy. This is partly because about 80% of the company’s wind market is in Europe, Kaeser said.

“So I think that doesn’t move the needle. I’m much more concerned about European economies and how they deal with a very powerful nation, with a very powerful concept. We may or may not like it, because it has certain kind of nationalistic things, but If we look at it from the point of view of the American people, we better do something,” Kaeser said.

Beyond onshore and offshore wind, Kaeser said Siemens Energy was well positioned to capitalize on a “booming” electrification market.

“Think about data centers, artificial intelligence, we now have wait times on large gas turbines. In reality, customers come and say, Hey, can I make a reservation and I’ll pay you for the reservation? Think about that “It hasn’t happened in a long time,” Kaeser said.

“I think the era of electrification has just begun. Whether it’s gas turbines, wind, solar or anything else, we have it all and in the end it’s the customers who decide. And one thing I think should not be underestimated : the White House “I don’t buy much (but) the customer does,” he added.

Spanish renewable energy giant Iberdrola was equally optimistic about the path to full electrification, describing the transition away from fossil fuels as “absolutely unstoppable.”

“We are seeing that we are probably in the best moment for electrification,” Ignacio Galán, CEO of Iberdrola, told CNBC at the WEF on Tuesday.

Galán cited growing global demand for electric data centers, low-emission vehicles, and cooling and heating applications.

“All of those things require more electricity 24 hours a day. Our business in the United States is mainly focused on this area, which is the networks… and the regulation depends on the state authority, so I think that is not really seen affected at all.” Galan said.

“Depending on the legislation, we will invest more or less in another part of our business,” he added, referring to Trump’s energy policy.

“We are very, very optimistic about the United States and the future,” Galán said.

Orsted of Denmark, which recently announced a approximately 1.7 billion dollars The US project impairment charge fell 4.4% on Wednesday morning, extending heavy losses from the previous session.

The fast-growing offshore wind sector has endured a torrid time in recent years, hampered by rising costs, supply chain disruption and higher interest rates.

Artem Abramov, head of new energy research at Rystad Energy, said Trump’s energy agenda essentially means the probability of any new offshore development in the United States has fallen to zero, at least for now.

“The United States currently has about 2.4 gigawatts (GW) of late-stage offshore wind developments that have reached final investment decision and are under construction, which are unlikely to be affected by the order,” Abramov said in a research note published Tuesday.

“Moderate risk amid the unfavorable investment climate exists for 10.5 GW of projects that obtained the necessary permits but have not made investment decisions,” Abramov said.

“The remaining 25 GW of early-stage projects are unlikely to see any progress under the current administration,” he added.

— CNBC’s Spencer Kimball contributed to this report.