Green Energy Stocks with Russia’s Invasion of Ukraine

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European and US green energy stocks have risen with Russia’s invasion of Ukraine, increasing pressure on governments to build more wind and solar power to reduce dependence on imported fossil fuels.

The world’s largest manufacturer of wind turbines Vistas Wind Systems AS and rival Siemens Gamesa Renewable Energy SA rose more than 15% on Monday, while Nordex C by 21%. In Denmark, Orsted AS, the world’s largest manufacturer of offshore wind farms, returned 11%.

Shares of US renewable energy companies rose in New York. Sunrun Inc. , the largest solar energy company in America, rose 13%. Enphase Energy Inc. And SolarEdge Technologies Inc.Ltd., which supplies switching inverters needed to install solar energy systems, rose more than 9%, making it the largest competitor in the S&P 500 Index. TPI Composites Inc.Wind turbine blade production company got 26%.

There is an understanding that Europe needs to move away from Russian oil and gas, and one way to achieve this is with renewable energy, said Deepa Venkatarevna, senior analyst. Bernstein Autonomous. This is not only about decarbonization, but also about security of supply. The war between Russia and Ukraine could slow the European Union’s ambitious plans to increase the share of renewable energy within a decade. With projects still loading up on domestic red tape, the heads of the biggest turbine manufacturers wrote to European Commission President Ursula von der Leyen last week urging the EU to speed up the approval process for new wind farms.

In order to reach its goal of neutralizing greenhouse gases by 2035, the German government has drawn up a plan to get all of its electricity from renewables by 2035, 15 years above the previous target of 2050. Greater use of renewable energy will reduce Reliance on fuel As Europe is likely to continue to rely on natural gas in the coming years. This could facilitate getting gas from countries other than Russia, which currently accounts for more than a third of Europe’s supply.

The rise in renewable energy stocks on Monday was in stark contrast to companies exposed to Russian fossil fuels. Austrian group of petroleum and chemicals OMV AG It fell 8% while Uniper SE, which helped fund a new gas pipeline from Russia that could never be used, fell 9.5%.

Joe Osa, an analyst at Guggenheim Securities, wrote in a research note that despite any additional shocks, higher fossil fuel prices would likely lead to additional performance in decarbonization stocks.

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