Impact of U.S. Elections on the Energy Sector

With Donald Trump’s victory and likely Republican control in Congress, two key issues are in focus for the renewable energy sector: the future of the Inflation Reduction Act (IRA) and potential shifts in inflation and interest rate policies. For now, substantial changes to the IRA seem unlikely. The act has notably driven investments and job growth, particularly in Republican-led states, earning support from some GOP lawmakers. Even during Trump's previous term, the sector performed well, showing bipartisan support for renewable incentives.

The second focus is on interest rates. Rising inflation expectations could lead to prolonged high rates, affecting tax, trade, and immigration policies. However, stable rates may support renewable energy growth, as long-term competitiveness remains strong. Data reveals robust global demand for solar power, increasing investments in clean energy, and rising U.S. electricity demand. Data centers, particularly in the U.S., are a growing source of power demand, potentially reaching 10% by 2030.

While nuclear energy remains part of the solution, renewables remain more cost-effective and quicker to deploy. In summary, despite uncertainties, the electrification trend and clean energy investments remain intact, underscoring the U.S. need for the IRA.

The fund will maintain its bottom-up investment strategy, rooted in fundamentals, and views the current uncertainty as a potential opportunity for value-driven investment adjustments.

The full article in in German on Windmesse.de, link below.