Nordex Drops Most Since 2008 on Wind Aid Cuts: Frankfurt MoverStefan Nicola
Nordex SE, a German maker of wind turbines, plunged the most in five years after Chancellor Angela Merkel’s government coalition negotiators agreed to cut aid for new wind-power projects.
Nordex fell 16 percent to 11.49 euros, the steepest drop since October 2008, after Merkel’s Christian Democratic bloc and the Social Democrats agreed in talks over the weekend to reduce aid for new onshore wind projects. The sides also backed cutting the target for offshore wind turbines and forcing owners of most new clean-energy plants to sell power on the market.
“Nordex will now have to, and is already, focusing on emerging markets because German projects will slow down,” Heinz Steffen, an analyst at Fairesearch GmbH in Kronberg, Germany, said in a phone interview. Today’s share-price reaction is “excessive,” he said.
Merkel has said the priority of her new government will be to overhaul the country’s 13-year-old EEG renewable energy law, which contributed to Germany having the second-highest power prices in the European Union.
The parties agreed to lower the offshore target to 6.5 gigawatts by the end of this decade, and to 15 gigawatts by 2030, from 10 gigawatts and 25 gigawatts, respectively.
On- and offshore wind aid will be reduced depending on the speed of new installations, similar to how solar subsidies are treated now, Heiko Maas, a lawmaker with the Social Democrats, said today by phone. There’s “no final agreement yet” on the exact level of subsidy cuts for on- and offshore wind, he said.
While the new offshore wind targets don’t come as a surprise, 8.5 gigawatts would be possible by 2020, said Andreas Wagner of the Stiftung Offshore-Windenergie, an offshore wind industry group.
“We need to know quickly how the new EEG will look in detail because offshore wind investors are currently holding back investments until there’s clarity,” Wagner said by phone.