Washington:
Donald Trump's promise to halt renewable energy projects on “day one” of his potential presidency has sent shockwaves through the sector, sending renewable energy stocks tumbling. “We're going to make sure that ends on day one,” Trump said of offshore wind farms.
According to a Reuters report, the world's largest offshore wind developer Orsted fell as much as 14 percent, while wind turbine makers Vestas and Nordex fell about 11 percent and 7.5 percent respectively.
This isn't Trump's first rodeo with renewable energy; in his previous campaign he claimed that solar panels require vast spaces, such as 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 currently operating occupying less than 600,000 acres.
If Trump makes good on his promise, it could have significant implications for the renewable energy sector as he could try to eliminate or reduce tax credits for renewable energy projects, which could cripple the sector's growth.
He could dismantle the Biden administration's environmental regulations, making it easier for fossil fuel companies to operate.
A Trump presidency could lead to a shift in energy policy, prioritizing fossil fuels over renewables.
Trump has vowed to end the electric vehicle mandate, which could hurt the EV industry and its infrastructure. Donald Trump's stance on electric vehicles has taken a dramatic turn.
Last December, he posted on Truth Social that EV proponents should “rot in hell.” But after conversations with Elon Musk, the CEO of Tesla and the richest man in the world, Trump suddenly softened his tone. Now he claims to be 'for electric cars' and thinks they are suitable for 'a small part' of the population.
At a recent meeting, Trump admitted that his change of heart was largely due to Musk's support. “I'm for electric cars – I have to be, because Elon supported me,” Trump said. “I have no choice.” This shift is quite surprising considering Trump's history of criticizing electric vehicles and even calling them a “hoax.”
It is essential to note that Trump's ability to make these changes depends on several factors, including support from Congress and potential backlash from states, companies and activists. Nevertheless, the uncertainty surrounding Trump's energy policies has already raised concerns among investors and renewable energy advocates.
Solar stocks are plunging on concerns that a second Trump presidency could jeopardize the Inflation Reduction Act, a crucial piece of legislation that has sparked a clean energy surge in the U.S. by providing tax incentives to boost solar power. stimulate. The law has played an important role in driving growth in the renewable energy sector.
