Renewable stocks notched record gains following a landmark climate deal struck by US Senators Joe Manchin and Chuck Schumer.
Sunrun Inc., the largest US residential-solar installer, jumped as much as 34% Thursday, the most on record. TPI Composites Inc., which makes wind-turbine blades, climbed as much as 38% in its biggest gain ever. Rooftop-solar company Sunnova Energy International Inc. surged as much as 41%, its largest intraday rise since March 2020.
Solar companies have faced a barrage of policy, trade and supply headwinds that slowed development and weighed on stocks. But the $369 billion toward energy and climate in the Senate deal announced Wednesday promises to stimulate years of growth. That is, if Congress ultimately approves the plan.
“Following many false starts for US climate legislation, and a recent hiatus in US wind orders, we see this as a significant step forward,” Citigroup Inc. analyst Martin Wilkie said in a research note.
The deal also buoyed shares of companies that own nuclear plants or develop hydrogen fuel cells. Constellation Energy Corp., which operates reactors, rose as much as 19%. Fuel-cell maker Plug Power Inc. jumped as much as 25%, and FuelCell Energy Inc. gained as much as 20%.
Wind farm developers also got a boost from the pact with the revival of a key tax credit. Wind power development has slowed this year as companies waited to see if Washington would renew the program. Shares in the world’s biggest wind turbine maker, Denmark’s Vestas Wind Systems A/S, jumped as much as 20% on the news, the biggest gain in nearly a decade.
--With assistance from Joe Ryan and Sam Unsted.
This article was provided by Bloomberg News.