Morgan Stanley | The details of REPowerEU are positive for the sector. In this note we analyse the changes to the new plan (the first one was 8 March). The objectives are more ambitious for the capacity and penetration in renewables, particularly in solar. Objectives have also been heightened for energy efficiency and an increase in carbon credits. For the time being it is more a political plan of intentions than anything else. Details are lacking as to how these goals are going to be achieved.
Our top picks are:
In integrated renewables: SSE, Iberdrola
In Pure plays: Orsted, Volatlia and Acciona Energía
With exposure to high energy prices: RWE, Drax, Centrica, Engie.