Donald Trump's pledge to stop renewable energy projects on "day one" of his potential presidency has sent shockwaves through the industry, causing renewable energy shares to plummet. “We are going to make sure that that ends on day one,” Trump said about offshore wind farms.
According to a Reuters report, the world's largest offshore wind developer Orsted fell as much as 14 per cent while wind turbine makers Vestas and Nordex traded down around 11 per cent and 7.5 per cent respectively.
This isn't Trump's first rodeo with renewable energy; in his previous campaign, he claimed that solar panels require massive spaces, like entire deserts, to generate energy. However, according to the Solar Energy Industries Association, the actual land requirement for solar panels is relatively small, with most utility-scale solar operating today taking up less than 600,000 acres.
If Trump follows through on his promise, it could have significant implications for the renewable energy sector as he might try to eliminate or reduce tax credits for renewable energy projects, which could cripple the industry's growth.
He could dismantle environmental regulations put in place by the Biden administration, making it easier for fossil fuel companies to operate.
A Trump presidency could lead to a shift in energy policy, prioritising fossil fuels over renewable energy sources.
Trump has vowed to end the electric vehicle mandate, which could harm the EV industry and its related infrastructure. Donald Trump's stance on electric vehicles has taken a dramatic turn.
Just last December, he posted on Truth Social that EV supporters should "rot in hell". However, after talks with Elon Musk, Tesla's CEO and the world's richest man, Trump suddenly softened his tone. Now, he claims to be "for electric cars" and thinks they're suitable for "a small slice" of the population.
At a recent rally, Trump admitted that his change of heart was largely due to Musk's endorsement. "I'm for electric cars - I have to be, because Elon endorsed me," Trump said. "I have no choice". This shift is quite surprising, considering Trump's history of criticising electric vehicles, even calling them a "hoax".
It's essential to note that Trump's ability to implement these changes would depend on various factors, including congressional support and potential pushback from states, businesses, and activists. Nevertheless, the uncertainty surrounding Trump's energy policies has already caused concern among renewable energy investors and proponents.
Solar stocks are plummeting due to concerns that a second Trump presidency could jeopardise the Inflation Reduction Act, a crucial legislation that has driven a clean energy surge in the US by offering tax incentives to boost solar power. The act has been instrumental in fuelling growth in the renewable energy sector.