Trump's election victory: a blow to the US clean energy industry

Donald Trump's victory in the US presidential election was a major blow to the renewable energy sector. This result forced not only investors to sell shares, but also several major developers to suspend their projects in the industry. In particular, major solar and energy companies are rethinking their strategies in the face of new policies that Trump promises to introduce after taking office.

According to a report in the Financial Times, the victory of Trump, who promised to increase oil and gas production, as well as cancel Joe Biden's climate initiatives, caused uncertainty for investors. One of his biggest decisions will be the rejection of the Inflation Reduction Act, which provided the strongest measures to support renewable energy in the country. According to him, this will make it possible to increase the extraction of traditional energy resources, which, according to Trump, will ensure the energy security of the country.

Canadian solar company Heliene has suspended its $150 million project in the U.S. pending more political clarity from the new administration. This decision was a direct response to the changes in energy policy that are expected under the leadership of Trump. Another example is Princeton battery recycling startup NuEnergy, which is rescheduling the construction of its $300 million plant, which was supposed to open in 2028.

With the election of Trump and the likely establishment of a Republican-controlled Congress, investors have started to sell shares of companies related to renewable energy sources. The iShares Global Clean Energy ETF, which tracks such companies, fell 7% on news of Trump's victory. Shares in giants such as First Solar and Vestas also fell by around 10%, while fuel cell companies such as Plug Power and solar supplier Sunnova lost more than 25% of their value.

With fears growing that the pace of US decarbonisation could slow under Trump, many analysts believe the renewable energy industry could lose some of its gains. If tax incentives for renewable energy sources are abolished, as well as the introduction of new tariffs for equipment and restrictions on obtaining permits, the use of such energy sources could fall by 30%.

These policy changes could significantly change the landscape of the US energy industry, particularly for companies investing in renewable energy sources. Many are now waiting to see exactly how the new Trump administration will deliver on its energy policy promises and what implications that will have for the future of the US clean energy sector.