U.S. reconciliation bill proposal not as severe as feared, clean energy stocks jump in Europe

SOLARIA ENERGIA Y MEDIO AMBIENTE SA

13/05/2025 09:03

** Shares in European renewable energy groups rise on Tuesday, with analysts saying that draft proposals by the U.S. lawmakers aiming to repeal some of the lucrative climate measures were not as bad as feared

** Danish wind turbine maker Vestas VWS.CO soars 12% to the top of STOXX 600 .STOXX index, while Orsted ORSTED.CO is up 5%

** Portugal's EDP Renovaveis EDPR.LS is up more than 9%, Spain's Acciona Energia ANE.MC and Solaria SLRS.MC rise 3-4%; Germany's RWE RWEG.DE is up around 2%

** The tax credits would phase down from 80% for a facility placed in service during 2029, to 60% by 2030, 40% by 2031 and zero after 2031, the proposal says

** "Worst-case scenarios have been avoided," RBC analysts say

** J.P.Morgan analysts say the reconciliation bill proposal looks better than expected for clean energy group with operations in the U.S.

** "We believe the text aligns with, or exceeds, the more bullish end of investor expectations for our coverage of stationary power providers solar, wind, storage, and geothermal," JPM says

** Still, the broker says that the bill is merely "the first step in the process" and that potential changes are possible

 (Reporting by Boleslaw Lasocki, Tiago Brandao)

 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))