June 29th, 2026 | 07:05 CEST
How to Benefit from the Grid Crisis: Nordex, RE Royalties, and Bloom Energy Are Capitalizing on Market Bottlenecks
The energy transition is no longer just about expanding megawatt capacity, but about managing the entire system architecture. While digitalization and industry will cause electricity demand to rise exponentially, grids are becoming the limiting factor and service contracts are driving returns. The markets are recognizing that the real value creation lies not in mere generation, but in resolving bottlenecks, financing existing plants, and ensuring a decentralized supply. We take a look at three companies active in these areas. Nordex secures long-term wind power revenues, RE Royalties finances green infrastructure through recurring revenue, and Bloom Energy supplies the decentralized power plants for the next stage of supply.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
RE ROYALTIES LTD | CA75527Q1081 | TSXV: RE , OTCQX: RROYF , BLOOM ENERGY A DL-_0001 | US0937121079 , NORDEX SE O.N. | DE000A0D6554
Table of contents:
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Nordex: Order Surge and Margin Turnaround
The first-quarter figures have been available since late April. Revenue stood at EUR 1.6 billion, EBITDA at EUR 131 million, and the margin at 8.2%. The group has set the bar high for the full year. Revenue of up to EUR 9 billion and a margin of up to 11% are the stated targets. The order backlog rose to EUR 17 billion, broken down into EUR 10.5 billion from the project business and EUR 6.5 billion from the service business. Average selling prices increased from EUR 0.87 million to EUR 0.91 million per megawatt. This indicates improved terms and optimized value creation.
May and June saw a veritable surge in orders. In Germany, Nordex secured orders totaling approximately 255 megawatts (MW) across 14 projects and 39 turbines, including the Rheine-Catenhorn community wind farm, which features 5 N163/6.X turbines. An additional 484 MW were added in the US, 100 MW in Eastern Europe, and 155 MW in Southern Europe and Turkey. Of particular note is the 112 MW Altmark repowering project in Saxony-Anhalt for NeXtWind, featuring 16 N175/6.X turbines and a 20-year service contract. The Romanian flagship project Pestera II, with 392 MW for Copenhagen Infrastructure Partners, also reached a milestone. Turbine production is underway, and commissioning is scheduled for 2028.
Geographic diversification is increasing, and risk is decreasing. The new rotor blade production facility in Menemen, Turkey, has been operational since May—a strategic move to meet growing demand in the region. BlackRock crossed the 3% voting rights threshold at the end of May and now holds 4.77% of the shares. The industry remains cyclical; subsidy policies and supply chains are not peripheral issues. However, order books are well-filled, margins are rising, and production is underway. Anyone investing here should keep an eye on the quarterly results. The share is currently trading at around EUR 43.90.
RE Royalties: Financing Pioneer
Royalty financing originated in the mining industry, where Franco-Nevada was one of the pioneers of the business model. RE Royalties applies the same principle to the energy transition sector. The company provides funding to project developers and, in return, receives a share of the revenue from solar parks, wind farms, and battery storage facilities. It does not operate its own projects, which allows it to scale effectively with a small team. This ensures stable cash flows over a term of up to 25 years. Developers retain their equity but gain access to flexible capital—a smart move. In the future, dividends will be paid only once a year, providing the company with financial flexibility. The pipeline is full; the funds need to be put to work.
The Jackson Center solar project in Pennsylvania illustrates how the model works. RE Royalties supported the project from groundbreaking through commissioning, providing the capital required to complete the 27 MWDC solar facility. In return, the company secured a tiered gross revenue royalty. A CAD 10 million loan is currently in place in the Maldives. Two solar projects are replacing diesel generators—one installation is located on a hospital rooftop, the other on a resort island. Both are critical infrastructure. As critical infrastructure assets, these projects offer predictable cash flows and relatively low default risk, helping to strengthen confidence in the business model.
The partnership with Solaris Energy began in January with an initial tranche of USD 3.0 million, followed by a second tranche of USD 0.8 million in February. This brings the total commitment to USD 3.8 million for a portfolio of 25 distributed generation projects across the United States. Under the agreement, Solaris may draw up to USD 9 million. A key announcement followed on March 27, when the company revealed that its Board of Directors had initiated a strategic review. PricewaterhouseCoopers has been engaged to evaluate strategic alternatives, including a potential sale, strategic partnerships, or new financing structures, with the objective of maximizing shareholder value. With a market capitalization of approximately CAD 16 million and a potential project pipeline estimated at around CAD 200 million, the valuation gap is striking. The coming months could therefore prove to be an important catalyst for the company. The shares are currently trading at around CAD 0.37.
Bloom Energy: Between Hype and Substance
The past few months have transformed Bloom Energy from a niche provider into a celebrated hero of AI infrastructure. The key question for investors now is whether the company can translate the hype into sustainable growth. The quarterly figures speak for themselves. Revenue surged 130% to USD 751 million in the first quarter, and the product business nearly doubled. Operating profit is positive for the first time in years, marking a true turning point. Management responded by raising its annual growth forecast to 80%.
Two major deals underscore the company's positioning. The 10-year agreement with Nebius, worth USD 2.6 billion, and the framework agreement with Oracle for up to 2.8 gigawatts of installed capacity show that major AI players are banking on Bloom's decentralized power solutions. The fuel cells bypass overburdened public grids and save years in commissioning time. CEO Sridhar also emphasizes the environmental benefits: the plants are cleaner and quieter than conventional power plants. Bloom is thus becoming a practical solution to an acute problem, not an abstract future scenario.
The downside is the high valuation. The price-to-book ratio of around 38 contrasts with an industry average of about 3. Analysts are divided. Bernstein considers the stock fairly valued, while Morgan Stanley and UBS have set significantly higher price targets of over USD 300. The Crusoe project, which has been temporarily put on hold, serves as a reminder of potential uncertainties. Dependence on a few major customers remains a structural risk. Nevertheless, the USD 20 billion order backlog and the projected USD 30 billion fuel cell market by 2030 offer substantial potential. Currently, one share costs around USD 269.10.
The grid crisis is driving returns. Nordex is benefiting from margin and service growth. RE Royalties is financing the energy transition with stable cash flows. Bloom Energy is supplying decentralized power plants for the AI era. Those who focus on energy systems rather than just generation today will secure decisive competitive advantages.
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