Nordex and Orsted Surge as IEA Projects Significant Renewable Capacity Growth

The International Energy Agency’s (IEA) latest report highlights a significant increase in renewable energy capacity worldwide, presenting opportunities for companies such as Nordex and Orsted.

Following the IEA’s forecast of strong growth, particularly in the wind and solar sectors where both companies play a vital role, Nordex and Orsted experienced stock increases of 2.3% and 1.2%, respectively.

The IEA attributes this growth to several factors, including supportive government policies, decreasing technology costs, and increased demand from both businesses and households. According to the report, global renewable capacity is projected to grow by 2.7 times by 2030, surpassing the current ambitions of many countries by nearly 25%, albeit still falling short of the goal to triple capacity.

Wind and solar are expected to contribute almost 95% of this growth, reflecting a significant transition in global energy markets toward cleaner sources. The report indicates that an additional 5,500 gigawatts of renewable energy capacity will be added globally by 2030, with annual installations increasing by 70% to nearly 940 gigawatts compared to current levels.

Nordex, a prominent manufacturer of onshore wind turbines, stands to benefit significantly from the anticipated surge in wind energy. The IEA expects wind capacity growth to recover from recent disruptions in the supply chain and financial issues, nearly doubling the expansion rate from 2024 to 2030. This recovery is fueled by optimized auction designs, more efficient permitting, and enhanced project viability across key markets in Europe, the United States, and developing economies.

Similarly, Orsted, a leader in offshore wind energy, is well-positioned to capitalize on the rapid growth forecasted for offshore installations. Despite current supply chain challenges, the offshore sector remains essential for future renewable capacity growth. The IEA notes that ambitious targets set by the European Union and the United States will drive demand for offshore wind projects, allowing Orsted to secure a significant share of this expanding market.

The report emphasizes China’s critical role in the global renewable capacity expansion, projected to account for 60% of the growth by 2030. China’s leadership in both solar and wind energy, supported by favorable policies, is set to reshape global energy dynamics. Additionally, growth in the European Union and the United States, propelled by legislation such as the Inflation Reduction Act and renewable energy auctions, will further accelerate the expansion of solar and wind energy.

The IEA highlights that solar energy is expected to be the fastest-growing segment of the renewable sector, contributing 80% of total renewables capacity additions by the decade’s end. This rapid uptake of solar energy is attributed to declining costs, shorter permitting processes, and greater social acceptance, especially in regions where electricity costs are a concern for both residential and commercial users.

While the wind sector is facing challenges, it is anticipated to rebound strongly due to favorable policy reforms and increased investments unlocking new projects in essential markets.

The IEA’s forecast indicates a transformative period for renewable energy, with companies like Nordex and Orsted at the forefront of this shift. As wind and solar continue to solidify their positions in the global energy market, firms deeply entrenched in these industries are likely to experience significant benefits.

With government policies facilitating the move toward renewable energy and innovations addressing existing challenges, the outlook for these companies—and the renewable energy sector as a whole—remains highly promising.