Shares of multiple renewable energy companies fell on Wednesday after Donald Trump was declared the winner of the presidential election and given a second term in the White House.
Solar power companies were particularly hard hit, with Enphase Energy plunging more than 18% and First Solar falling more than 12%. Brookfield Renewable Partners fell more than 8%.
Shares in European clean energy groups also fell on Wednesday.
Orsted, the world's largest offshore wind developer, fell as much as 14%, while wind turbine manufacturers Vestas and Nordex fell about 11% and 7.6% respectively.
Meanwhile, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all hit new intraday highs Wednesday morning.
Trump's decisive victory over Vice President Kamala Harris was a blow to the Biden-Harris administration's environmental policies, which have significantly increased government spending on clean energy alternatives.
Biden's signature Inflation Control Act of 2022 (IRA) invests $369 billion in what Democrats have dubbed “energy security and climate change” provisions that will reduce carbon emissions by 2030. That amounts to billions of dollars in incentives and tax breaks aimed at reducing taxes by 40%.
Trump, meanwhile, welcomed the U.S. fossil fuel industry and promised “drill, baby, drill.” The president-elect vowed on his first day in office to eliminate offshore wind energy projects through executive order and roll back climate change regulations put in place under the Biden administration.
In response to President Trump's victory, Deutsche Bank said in a note to customers that “substantial changes may be possible, but it is up to Congress to completely abolish IRAs.”
Phil Flynn, senior market analyst at Price Futures Group and FOX Business contributor, also heavily criticized Biden's policies in Wednesday morning's Energy Daily, suggesting that President Trump will bring major changes to the energy landscape. denounced.
“President Trump will rescind many of Biden's short-sighted executive orders on energy that have fueled inflation and caused major concerns for U.S. oil and gas producers,” Flynn wrote. “Biden's policies have been a dismal failure when it comes to improving the environment. We've seen billions of dollars in wasted government spending, yet the administration has failed to substantially meet its climate pledges. I've seen it.
Flynn added: “The U.S. oil and gas outlook is once again looking great, but the supply potential is rising in part due to the Biden administration's reins in oil and gas projects. “We still have to face the strain,” he added.
Reuters contributed to this report.
