Vestas rises after US clarifies wind subsidy rules

Vestas Wind Systems A/S

18/08/2025 08:27

** Vestas shares are up 11%, among top performers on the pan-European STOXX 600 index .STOXX, after US Treasury released guidelines for the qualification of wind and solar subsidies

** J.P.Morgan says guidelines came as a result of an executive order by President Trump last month

** The brokerage adds, Vestas recently flagged risks that the IRS might raise the 5% threshold or shorten the 4-year construction window

** Against that backdrop, the new IRS guidelines are a positive development, offering clarity on subsidies for projects through 2030, as per JPM

** "The IRS has replaced the 5% safe harbor with a "Physical Work Test" and "Continuity Requirement," which favor equipment makers like Vestas due to their key role in meeting these criteria", it adds

** Its Danish peer Oersted ORSTED.CO rises 3%

 (Reporting by Agnieszka Gosciak-Rabalska)

 ((Agnieszka.gosciak@thomsonreuters.com))