Fitch Ratings: Trump’s order raises regulatory risks for EMEA utilities’ wind investments

Fitch Ratings warned on Tuesday the recent executive order by President Trump on 20 January 2025 could disrupt the US wind business for utilities in the in the Europe, Middle East, and Africa (EMEA) but is unlikely to trigger further rating actions.

The order halts new onshore and offshore wind permits and withdraws offshore areas from leasing until a comprehensive review is completed, raising regulatory uncertainty for major players like Orsted (BBB+/Negative), Iberdrola (BBB+/Stable), and RWE AG (BBB+/Stable).

The temporary measures could delay projects, halt Inflation Reduction Act (IRA) subsidies, and inflate development costs, although existing leases remain unaffected. Iberdrola’s Vineyard Wind 1 project, aiming for 62 turbines by late 2025, may proceed, but newer projects like New England 1 & 2 face potential delays.

Ocean Wind, a joint venture of Engie (BBB+/Stable) and EDP (BBB/Stable), reported a EUR400 million exposure to US offshore wind but lacks significant supply chain commitments. Similarly, RWE scaled back US investments, while EDF, in partnership with Shell, and Acciona Energia face limited exposure due to diversified operations.

Fitch expects EMEA utilities to shift investments to regions or sectors with better risk-return profiles amid the heightened US regulatory challenges.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

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