“The contract addresses important challenges: climate change, digitization, state modernization and innovation, including the lack of start-ups,” said Union Investment’s chief economist, Jörg Zeuner, on Thursday. He expects that issues related to climate change, the expansion of green electricity and infrastructure will benefit on the stock market.
The traffic light parties have agreed to expand renewable energies faster and more strongly. The same applies to the power grids. The coal phase-out is to be brought forward to 2030 from 2038 and the expansion of a climate-friendly hydrogen economy is to be supported. Uniper shares rose at times by 1.8 percent on Thursday, E.ON shares by 2.7 percent and RWE shares by almost seven percent.
“Two thirds of E.ON’s business consists of the German electricity distribution network,” explained Zeuner. Greater electrification can only be achieved if investments are made in more powerful networks and a decentralized connection of electricity generators – especially from the field of renewable energies (wind, sun). “E.ON, as the largest network operator in Germany, should benefit from this and grow significantly in the coming years.” An energy turnaround in Germany would not be conceivable without E.ON.
The Düsseldorf power plant operator Uniper, along with its strong gas business, should also benefit, said the expert. “As a flexible power source, gas will be one of the most important components of the energy transition.” It is urgently needed to compensate for the fluctuating green electricity from wind and sun. Uniper could play a leading role in building the hydrogen economy. “In addition, new plants for generating electricity from clean hydrogen should be built at the company’s existing sites.”
RWE, which has a significant stake in Kärntner Kelag in Austria, wants to expand its green electricity generation by billions. With the largest German electricity producer, only 25 percent of future-relevant investments would flow to Germany, explained Zeuner. “Nevertheless, the energy transition is also positive for the company, because it is now worthwhile to build an even larger number of offshore wind farms, for example in the North Sea.” (APA / Red)