Even before he was elected to the White House, president Trump had declared a lot of support for production of fossil fuels. Coupled with his incessant denials about climate change, this had led to a lot of apprehension about the tomorrow of green energy in America. But all is not lost, at least according to some investors – who believe that Trump does not have the power to withhold wind and solar energy.
Proponents of green energy under the Trump Presidency say that pre-defined goals by over half of all U.S states will act as the driving force for the growth of renewable energy deployments. Even better, more companies are pledging to source their power from clean energy sources, and legislators from both parties are renewing subsidies offered to firms in the wind and solar energy production industry.
In 2015, Trump wrote a book, ‘Crippled America’, in which he reiterated his beliefs that green energy is a bad investment. According to Trump, the push for green energy is motivated by the mistaken view that ‘climate change is caused by carbon emission’.
This line of thinking, followed by Trump’s declaration of support for fossil fuels, had sent shock waves in the renewable energy sector.
But investors now understand that with Trump, you have to separate rhetoric from what’s reality.
Projection for Growth
In the most recent yearly Energy Outlook by the US Energy Information administration, consumption of renewable energy will record faster growth than all other sources through 2040. In part, this is due to capital cost drops as more wind and solar farms crop up across the nation. Furthermore, state and federal policies are being formulated that encourage construction of green energy farms.
Already, 29 U.S states have standards for renewable fuel. There’s also a lot of insulation from Trump’s take because the White House has little or no influence on local and state rules for wind and solar projects.
Heart-Warming Trends for the Industry
Recently, California announced a new plan to trim down carbon emissions to pre-1990 levels. This is a heart-warming trend given Trump’s decision to cancel the former president’s (Obama) Climate Action Plan. And this isn’t just a blue-state development. For a long time, Texas has been a leading state when it comes to the generation of solar and wind energy.
Tech corporations based in California have continuously set the bar high with new green energy targets, as they work to polish their (environmental) renewable energy credentials.
In November 2016, Wal-Mart announced that it would be drawing half of its power from renewable sources by 2015.
These trends will obviously benefit firms that make wind turbines solar panels, and other stakeholders in the green energy space.
Like any other industry, the green energy space is not without its challenges. But there’s a generally positive outlook in the industry. Furthermore, rising prices for natural gas in the U.S. could mean increased green energy opportunities for firms.