Shares in NextEra Energy (NEE) slipped after president-elect Donald Trump stated his incoming administration would seek to ban new wind energy projects.
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“We’re going to try and have a policy where no windmills are being built,” Trump said, adding, “They don’t work without subsidy. … You don’t want energy that needs subsidy.”
Small-cap Broadwind (BWIN) and TPI Composites (TPIC) fell even more, while several European wind turbine makers were caught up in the fallout.
Wind Energy Faces Uncertainty amid Trump’s Remarks
The winds of change have been evident since the U.S. presidential election in November. “The change of administration in the U.S. entails risks for the timely implementation of offshore wind projects,” said Michael Muller, CEO of German energy company RWE, at the time.
NEE stock has declined by around 12% in the last three months, while BWEN is down 5%, and TPIC, which makes composite wind turbine blades, has dropped by over 60% during that period.
Last year, NEE expressed bullishness about projects through to 2027. It’s still unclear how Trump’s remarks will impact the company.
Trump Faces Opposition
Unsurprisingly, Trump’s remarks have faced criticism. Senate Finance Committee Ranking Member Ron Wyden, D-Ore., responded with a statement asserting that Trump’s “no windmills” policy would slash U.S. energy production and drive up electricity costs for families. Wyden argued that Trump opposes wind energy due to a lack of understanding of the nation’s energy requirements and a personal disdain for turbines near his private country clubs, calling him “completely out of touch.”
Is NEE a Good Stock to Buy Right Now
Overall, Wall Street has a Moderate Buy rating on NEE, based on nine Buys, four Holds and one Sell. The average NEE price target is $87.77, which implies about 24.6% upside potential from current levels. NEE shares have declined by 12% over the last three months but are up 15% in the last 12 months.
