Investing.com – Shares in Orsted (CSE:) and other sustainable energy names slipped on Wednesday after President-elect Donald Trump said he would push to have no more wind farms constructed in the US during his second term.
In a press conference on Tuesday, Trump stated he would pursue a policy of having “no windmills” built when he returns to the White House later this month. He also criticized current President Joe Biden’s decision to ban oil drilling off the coast of the US and declared that federal expenditures on clean energy amounted to tossing money “out the window.”
Trump has been an outspoken critic of the energy source, arguing that it is more expensive than gas power and damaging to the environment. He previously lodged an unsuccessful fight against a project to have wind farms installed next to his luxury golf course in Scotland.
In particular, Trump — who as president could have some influence over the fate of offshore wind projects and proposed wind farms on federal land — targeted a plan for 200 wind turbines off the coast of New Jersey, apparently referring to a project overseen by EDF (EPA:) Renewables and Shell (LON:), Bloomberg News reported. Other companies with wind projects that could be under threat include Denmark’s Orsted, Bloomberg added.
“Comments by Trump may increase risk for the wind industry as a whole in the US given these comments appear to include both offshore and onshore wind,” analysts at RBC Capital Markets said in a note to clients. “We continue to see strong anti-offshore wind sentiment in the US from the incoming Trump administration, which may make it difficult to get permits and approvals for new offshore projects.”
Along with Orsted, shares in peers like Vestas Wind (CSE:) Systems and Siemens (ETR:) Energy were also lower in mid-morning European trading.
Critics of Trump’s stance have said his policy would push up electricity costs and eliminate a source of power for Americans, Bloomberg reported. Wind energy provides one of the cheapest and fastest-growing sources of electricity in the US, the New York Times (NYSE:) reported, citing the Department of Energy.
Meanwhile, a report from investment bank Lazard (NYSE:) found that some renewable energy generation technologies “remain cost-competitive” when compared to convertional power means — such as a combined-cycle gas turbine — “under certain circumstances.”