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Solar panels at a renewable energy complex in Yeonggwang, South Jeolla Province / Korea Times file

By Lee Kyung-min

Shares of solar, wind and other renewable energy companies are on a steep rise, propelled by the passage of a U.S. inflation reduction bill and Russia's invasion of Ukraine that triggered a global energy crisis, market watchers said Tuesday. The U.S. Inflation Reduction Act will enable investments of $369 billion (481 trillion won) in energy security and climate solutions.

Some market analysts say the local shares will report solid medium- to long-term growth, lifted by many countries seeking energy independence, mostly in the form of reducing imports of crude oil, natural gas and fossil fuels.

Shares of Hanwha Solutions, a multinational energy services, petrochemical and real estate development affiliate of Hanwha Group, soared nearly 30 percent over the past week.

The share price closed at 44,100 won, Tuesday, down 0.11 percent from the previous session. The biggest day among the five-consecutive-day spike was July 28, when it rocketed 20.37 percent to 42,250 won. The price hovered at around 34,600 won on July 26.

An even sharper trajectory was registered by the share price of Hyundai Energy Solutions. It closed at an all-time high of 53,200 won, Tuesday, the fifth consecutive day of increase including a 23.77 percent spike on July 29. Its share price at the time jumped to 55,500 won, up more than 45 percent from 34,650 won.

Among the beneficiaries of the short-term price spike is CS Wind, a local wind tower manufacturer and wind power generation technology developer. Its share price rose to 57,600 won, up 19.5 percent from 48,200 won in the same period.

Eugene Investment researcher Han Byung-wha said European countries will accelerate the installations of wind power generation facilities, as part of a measure to bolster energy self-sufficiency to prevent another geopolitical volatility-triggered energy crisis.

"The wave of fortifying energy independence coupled with the resumption of delayed renewables projects in the U.S. will come soon," he said in a report. "The policy objectives without relying on fossil fuels can be met only with wind and solar power generation. The U.S. wind market will have stronger visibility next year."

Meanwhile, the U.S. Senate Democrats passed the bill July 30 (local time) by a wide margin, in what market watchers say will be the "greatest pro-climate legislation passed by Congress."

The legislation is expected to help the U.S. cut about 40 percent of emissions by 2030, creating new jobs in the near to long term.

Technology developers and accelerators of de-carbonization efforts, including clean, green sources of electricity, will receive increased amounts of state grants and loan programs.