BayWa's renewable energy unit may be affected by US subsidy regulations

The company stated on Tuesday that President Donald Trump’s tax and spending plan could lower the U.S. earning of German agricultural supply trader BayWa’s renewable unit. This would drive its share price down.

BayWa Renewable Energy r.e. is reviewing its long-term business planning and earnings expectations in light of the so called 'One Big Beautiful Bill Act,' which has significantly reduced the subsidies for renewable energy sources. AG will review its long-term plans and earnings estimates and could potentially reduce them," the company said in a press release.

At 0817 GMT, shares of BayWa fell 3.9%.

The Trump Administration's bill will make it more difficult to develop wind and sun energy projects in the U.S., by accelerating the phase-out of renewable energy credits.

BayWa stated that it will take several weeks for the company to evaluate the impact of potential changes on its solar and wind business, as well as any countermeasures.

A rising cost of borrowing forced the Munich-based firm to implement a restructuring plan that included job cuts.

The company stated that it still aims to complete its restructuring by the end of 2028. (Reporting and editing by Miranda Murray, Barbara Lewis and Linda Pasquini)

(source: Reuters)