Europe’s Green Energy Stocks Spike on Weakened U.S. Big Beautiful Bill

This is a validation that the Inflation Reduction Act was giving money to other countries.

European green energy stocks surged this week following the U.S. Senate’s passage of President Donald Trump’s “One Big Beautiful Bill” on July 1, 2025. The legislation, initially feared to be a death knell for renewable energy, emerged with softened provisions that alleviated concerns for the global clean energy sector.

The removal of a proposed excise tax on renewable projects and the retention of tax credits for specific solar and wind initiatives sparked a rally in European renewable energy shares, as investors saw a less punitive outcome than anticipated. This article explores the key companies driving this surge, their flagship projects, and the implications of the U.S. bill for the global energy transition.

Background: A Watered-Down U.S. Bill

The “One Big Beautiful Bill” passed the U.S. Senate with a narrow margin, requiring Vice President JD Vance to cast a tie-breaking vote after over 24 hours of contentious debate. Initially, the bill included harsh measures targeting renewable energy, such as a steep excise tax on wind and solar projects and an accelerated phase-out of tax credits established under the 2022 Inflation Reduction Act (IRA). However, last-minute amendments by Republican senators, including Joni Ernst, Chuck Grassley, and Lisa Murkowski, removed the excise tax and extended tax credit eligibility for projects that start construction before June 2026 or become operational by the end of 2027.

While the bill still phases out renewable energy tax credits after 2026 for projects not meeting these timelines, the softened provisions were a relief for the renewable sector.

According to OilPrice.com, the amended bill “removes a 2027 ‘cliff’ for renewable energy projects in the U.S.,” providing a window for developers to secure incentives. This outcome was less damaging than feared, boosting confidence in the global renewable market, particularly in Europe, where companies are heavily invested in U.S. projects and supply chains.

Alex Epstein

was on top of the entire process, and we recommend following and subscribing to his Substack. He posted on his Substack:

Summary: The Senate bill looks like it has a 2027 “placed in service” cutoff for new solar/wind subsidies. But one last-minute paragraph makes the cutoff worthless—because projects making a recoverable 5% investment in the next 12 months are exempt!

As of the evening of June 30, the Senate was set to pass a bill that would cut off subsidies for new solar and wind projects not “placed in service” by the end of 2027. This would have been a huge victory for electricity in America, nevermind the hundreds of billions of future dollars saved by the government.

From my private conversations with Senators, many of them thought they were signing a bill with the 2027 “placed in service” cutoff. But in fact, a last-minute paragraph inserted by lobbyists and agreed to by leadership totally destroys the “placed in service” language.

European Green Energy Stocks on the Rise

The news triggered a sharp rally in European renewable energy stocks, with several major players seeing significant gains. Below, we highlight three key companies—Vestas, Ørsted, and SMA Solar—their stock performance, and the projects driving their growth.1. Vestas (Denmark) – Up 10%Stock Performance: Shares of Vestas, the world’s leading wind turbine manufacturer, jumped 10% in Copenhagen trading on July 2, 2025, reflecting investor optimism about its U.S. market prospects.Key Projects:

• U.S. Wind Turbine Supply: Vestas has a strong foothold in the U.S., supplying turbines for major onshore and offshore wind projects. The company recently secured a 1.2 GW order for a wind farm in Texas, set to begin construction in early 2026, which will benefit from the retained tax credits.

• Global Offshore Expansion: Vestas is also scaling up production for offshore wind projects in Europe, including the 1.4 GW Norfolk Vanguard project in the UK, one of the largest offshore wind farms under development.

• U.S. Manufacturing: Vestas operates blade and nacelle factories in Colorado, positioning it to meet domestic content requirements for U.S. tax credits, further bolstering its competitiveness.

The softened U.S. bill ensures Vestas can continue supplying turbines to projects racing to meet the 2026 construction start deadline, driving demand for its products. Citi analysts noted, “We see significant incentives for developers to place orders no later than H1’26,” a trend likely to benefit Vestas’ order book.2. Ørsted (Denmark) – Up 2%Stock Performance: Ørsted, the global leader in offshore wind development, saw its shares rise by 2% in Copenhagen on July 2, 2025, as the U.S. bill’s concessions preserved opportunities for its American portfolio.

Key Projects:

• U.S. Offshore Wind: Ørsted is developing several high-profile offshore wind projects along the U.S. East Coast, including the 1.1 GW Ocean Wind 1 project in New Jersey, expected to start construction in 2025 and qualify for tax credits. The company also operates the 704 MW Revolution Wind project, serving Rhode Island and Connecticut.

• European Offshore Leadership: In Europe, Ørsted is advancing the 2.4 GW Hornsea 3 project in the UK, set to be the world’s largest offshore wind farm when completed in 2027.

• Green Hydrogen Ambitions: Ørsted is investing in green hydrogen production, with projects like the 100 MW H2RES facility in Denmark, which uses offshore wind to power electrolysis.

Ørsted’s U.S. projects are well-positioned to meet the bill’s timelines, and the removal of the excise tax reduces financial risks for its supply chain, which relies on global components. The company’s diversified portfolio across wind and hydrogen strengthens its resilience amid U.S. policy shifts.3. SMA Solar (Germany) – Up 10%Stock Performance: SMA Solar, a leading supplier of solar inverters and components, saw its shares surge by 10% on July 2, 2025, driven by renewed confidence in solar project development.Key Projects:

• U.S. Solar Supply Chain: SMA Solar provides inverters for large-scale U.S. solar projects, including utility-scale installations in California and Arizona. Its products are critical for projects aiming to start construction by mid-2026 to secure tax credits.

• European Solar Growth: In Europe, SMA Solar is supplying equipment for Germany’s rapidly expanding solar market, including the 605 MW solar park in Witznitz, one of the largest in the country.

• Energy Storage Integration: The company is also developing advanced energy storage solutions, with pilot projects in Spain and Italy that integrate solar power with battery systems to enhance grid stability.

SMA Solar’s exposure to both U.S. and European markets makes it a prime beneficiary of the U.S. bill’s moderated stance.

The company’s focus on energy storage aligns with growing demand for reliable renewable energy solutions, particularly as AI data centers drive electricity needs.

Implications for the Global Energy Transition

The rally in European green energy stocks reflects a broader sigh of relief in the renewable sector, but challenges remain. The U.S. bill, while less punitive than initially proposed, still accelerates the phase-out of tax credits, which could leave thousands of projects unprepared to meet the 2026-2027 deadlines. Energy News Beat reports that the bill’s passage “delivers a mixed bag for energy,” with critics like Jeff Cramer of the Coalition for Community Solar Access warning that it “will jeopardize billions of dollars in private investment” and potentially lead to job losses.

I want to make this very clear. There has never been an Energy Transition. We are only adding energy, and for the trillions of dollars spent on “Renewable Wind, Solar and Hydrogen,” we have only used more fossil fuels. The Energy Transition is a wealth transfer.

For European companies, the softened bill preserves near-term opportunities in the U.S. market, where renewable energy demand is surging due to the growth of AI data centers and the increasing electrification of the economy.

However, the long-term outlook is less certain, as the Trump administration prioritizes fossil fuels and nuclear energy. Energy Secretary Chris Wright stated on X, “The One Big Beautiful Bill removes the nonsense and distortions from energy markets and unleashes American business to produce energy that works WITHOUT subsidies!” This rhetoric suggests continued pressure on renewable energy sources.

In Europe, the stock surge underscores the region’s leadership in the global energy transition. Companies like Vestas, Ørsted, and SMA Solar are not only capitalizing on U.S. opportunities but also driving innovation in offshore wind, solar, and green hydrogen. The European Union’s ambitious 2030 climate targets and investments in grid infrastructure provide a stable backdrop for these firms, contrasting with U.S. policy volatility.

The Bottom Line

The U.S. Senate’s passage of a watered-down “One Big Beautiful Bill” has sparked a rally in European green energy stocks, with Vestas, Ørsted, and SMA Solar leading the charge. These companies are leveraging their expertise in wind, solar, and energy storage to capitalize on both U.S. and European markets, with projects like Vestas’ Texas wind farm, Ørsted’s Ocean Wind 1, and SMA Solar’s Witznitz solar park showcasing their global reach.

Wasif

Latif was just on my podcast, and I just produced one with him and David Blackmon. They also discussed commodities and Geopolitical issues around the world. Wasif’s team at Sarmaya Partners has illustrated the growth of energy in the chart below. Look at the relatively low impact of the trillions spent globally on “Renewable” energy, compared to the amount of energy they produce. We are not in an energy transition, but rather an energy addition.

And the financial robbery that our government has done on the U.S. taxpayers is criminal.

While the bill’s concessions offer short-term relief, the renewable sector in the U.S. faces an uncertain future as tax credits wane. For now, European firms are riding the wave of optimism, positioning themselves as pillars of the global clean energy revolution.

And as a U.S. Taxpayer, it sickens me that people do not understand how much damage the Democrats and RINOs have done to our financial system by shipping jobs and money overseas.

Sources: OilPrice.com, Energy News Beat, Alex Epstein’s Substack