The electoral victory of Donald Trump results in a severe setback for the US renewable energy industry. Several companies are suspending planned projects and investors are pulling out. Trump announced plans to repeal the "Inflation Reduction Act" (IRA), a law crucial for promoting solar and wind power as well as battery technologies.
Here is the translation of the heading to English:
"Canadian solar module manufacturer Heliene holds back its plan to build a US solar cell factory for $150 million until the political situation is clarified. The battery recycling startup Princeton NuEnergy is also reconsidering the planned construction of a $300 million production facility. 'We are waiting with investments until there is more clarity,' said Heliene CEO Martin Pochtaruk.
The election of Trump and the prospect of a Republican-dominated Congress cause uncertainty, putting pressure on renewable energy companies' stocks. The iShares Global Clean Energy ETF, which tracks renewable energy, fell by 7 percent. Shares of First Solar and Vestas dropped by about 10 percent, while Plug Power and Sunnova lost more than a quarter of their value. Investors with short positions in these stocks recorded billion-dollar gains.
Trump's attacks on the IRA, which he called a "green fraud," threaten the potential of the U.S. as a leading market for clean energy. According to the Clean Investment Monitor, the IRA alone has triggered around 450 billion dollars in private investments in the energy transition since its introduction in 2022. According to Wood Mackenzie, repealing the law could reduce the expansion of renewable energy by up to 30 percent.
The economic attractiveness of solar and wind energy, however, remains. Despite the pressure from rising interest rates, these technologies are considered the most cost-effective power sources for new installations. "We are confident that the future of the sector remains positive even under a Trump administration," said Eric Dresselhuys, CEO of battery manufacturer ESS.
Trump also announced extensive import tariffs of up to 20 percent and 60 percent on products from China. These measures could further drive up the costs for renewable energy. "Too many unknowns – it is difficult to make decisions," stated Princeton NuEnergy CEO Chao Yan.
According to Wood Mackenzie, a second Trump mandate could cause an additional 500 million tons of CO₂ emissions in the energy sector by 2030. Andrew Reagan, director of Clean Energy for America, warned: "It's about whether President Trump will allow the USA to lead in the field of renewable energy or if they will cede that leadership to countries like China.
