European Capital Goods: FAQ on EEG Reforms - not an imminent event but something to watch out for later in the year

Research evidence excerpt

European Capital Goods: FAQ on EEG Reforms - not an imminent event but something to watch out for later in the year

.mehta@jpmchase.com

support for the wind industry under the new bill, where we note that in March, the J.P. Morgan India Private Limited

Economy Minister announced an additional 12GW of wind auction volumes

through 2030. The new rules should also enable the restart of offshore wind Specialist Sales contact details:

auctions next year after a failure to attract bidders in past auctions. Among the Sam Edmunds - Specialist Sales -

suppliers, we rate Vestas, Siemens Energy and Prysmian as Overweight. In this European Industrials

note we summarise frequently asked questions and what we are looking out for post (44-20) 7742-8733

sam.edmunds@jpmorgan.com

summer.

• What is the EEG and why does it matter? Erneuerbare-Energien-Gesetz

(EEG) or the Renewable Energy Sources Act, offers the mechanism to

incentivise clean energy technologies like wind and solar in Germany. The law

was first enacted in 2000, and was reformed over time to include significant

measures such as the move to the competitive auction from fixed tariffs in 2017

and accelerating renewable energy build in the EEG 2023 update. EEG helped

the share of renewable electricity to rise to 57.2% of gross electricity

production in 2025, according to Yahoo Finance. EEG sets out a framework for

competitive auctions that helps support both the wind and solar industries in

Germany, as well as the corresponding grid buildout. The existing framework

is valid until the end of 2026, and a new package is currently being discussed

in Germany, which will require EU approval. In our coverage, EEG is

important for turbine suppliers Vestas and Siemens Energy, cable companies