From Morningstar: 2024-11-13 05:21:42

Offshore wind projects are facing challenges due to rising costs and unfavorable political winds, impacting climate change mitigation efforts and wind power company valuations. Trump’s presidency poses a threat to the industry, with potential executive orders halting projects. Despite near-term uncertainty, long-term prospects for wind and solar remain positive.

Grid bottlenecks are another challenge for the sector, hindering renewable energy expansion in Europe. Insufficient grid capacity delays energy transition and economic growth. To address this, the European Commission plans significant grid investments by 2030, driving earnings and dividend growth for utilities. Increased grid investments are crucial for resolving congestion issues and connection delays.

Renewable energy developers are seeing improvements in the backdrop, with more supportive economics for onshore wind projects and opportunities for energy transition acceleration. However, solar is surpassing wind in growth and adoption, reflecting supply chain changes and cost reductions. Undervalued stocks in the wind sector present investment opportunities for investors looking for exposure to renewable energy.

E.ON, Equinor, Ørsted, RWE, SSE, and Vestas Wind Systems are European stocks exposed to the wind sector. Analysts highlight investment opportunities and risks for each company, providing insights into their operations, growth strategies, and valuations. Investors can consider these undervalued stocks as potential opportunities in the renewable energy sector.



Read more at Morningstar: Six Undervalued European Wind Energy Stocks