Wind giants' shares rise on investment news from Britain and Germany

Despite the challenging developments in the wind energy sector in recent months, the start of the month brought several positive news stories. Great Britain announced a major investment deal with Japanese conglomerate Sumitomo in offshore wind and hydrogen. German company Nextwind secured a record loan to expand its wind capacity. Western Europe continues to support wind energy, and optimism soon spread to the stock markets. 

The most attention was drawn to news from Great Britain, which announced a major deal with Japanese conglomerate Sumitomo Corporation to invest 7.5 billion pounds (approximately 8.8 billion EUR) in clean energy over the next decade. The project will focus primarily on offshore wind farms, the development of hydrogen technologies and strengthening the electricity grids.

The deal is significant not only financially but also politically. It combines Britain's efforts to strengthen its domestic energy security and meet its climate targets with Japan's interest in investing in global green infrastructure. London is also signalling that it wants to remain a leader in offshore wind energy, where it is already one of the world's largest markets.

The British government also announced a new strategy to develop onshore wind, aiming to double installed capacity from approximately 16 GW to 27–29 GW by 2030. The plan includes creating up to 45,000 new jobs, speeding up permitting processes and providing financial incentives for communities that host wind farms. These measures respond to criticism that England has lagged behind Scotland and Wales in developing onshore wind projects.

Positive news from Germany, too

A similar development took place in Germany at the start of July. The country has long established itself as Europe's largest market for onshore wind energy. Nextwind announced that it had secured a record 1.4 billion EUR in debt financing from Deutsche Bank, ING and LBBW. The funds will enable the company to expand its capacity to 3 GW by 2028.

According to analysts, this is the largest loan of its kind for an independent wind power operator in Germany and a clear signal that banks see long-term green infrastructure as an attractive investment opportunity.

Turbine manufacturers' shares rise

Against the backdrop of these deals, European stock markets have also returned to positive territory after a long period. Wind turbine manufacturers Vestas and Nordex recorded gains again over the past week after a period of stagnation – Vestas rose 9 % and Nordex 1.3 %. According to Reuters, investors also reacted to news from the US, where the Senate approved extending tax breaks for wind projects through 2026. This move improves the outlook for export orders for European companies and strengthens confidence in global demand for renewable energy.

Experts nevertheless warn that the sector remains sensitive to political decisions and the regulatory environment. Alongside the need to finance extensive grids and backup capacity, concerns include pressure on European manufacturers from Chinese competitors and the need to harmonise EU legislation. The past week has nonetheless shown that the appetite for financing wind energy in Europe remains high, at least in the west.