A dip in renewable energy stocks on the back of Donald Trump winning the SU presidential is a buying opportunity for investors.
That is the suggestion from Nigel Green, CEO of financial advisor deVere Group.
In his election campaign, Trump pledged to halt offshore wind projects if re-elected, affecting companies like Ørsted and Vestas Wind, which saw declines of 14% and 12% on Wednesday.
US green energy names to fall included Plug Power (NASDAQ:PLUG) Inc and Ballard Power Systems Inc. (NASDAQ:BLDP, TSX:BLDP), which both plunged around 20%, AES Corp (NYSE:AES) (down 9%), Clearway Energy Inc (down 8%), NextEra Energy Inc (NYSE:NEE) (down 5.5%) and Brookfield Renewable Partners LP (down 6%).
While Trump’s stance may impact some US-based projects temporarily, it does not undermine the global momentum toward clean energy, said Green.
"The market's reaction is understandable, yet it overlooks the broader, global trend toward clean energy that continues to gain momentum, regardless of political cycles," he said.
While Trump may U-turn on the Biden administration’s goal of 30 gigawatts (GW) of offshore wind by 2030, global investment in renewable energy, particularly in Europe, Asia, and the Middle East is driving the industry forward.
For example, just this week, the UK's National Energy System Operator said the country will need to double its onshore wind capacity from 13GW in 2023 to 27GW by 2030, and triple its solar power from 15GW to 47GW by 2030.
The UK is far from the only governments around the world already investing heavily in renewable energy solutions to meet climate goals, reduce carbon emissions, and diversify energy sources.
Green stressed that the renewable energy sector is driven by long-term trends, adding that the current dip is an opportunity for investors with a longer horizon.
"The world is moving towards green energy, and no political leader can stop this seismic shift,” he said.
Other clean energy stocks fell on both sides of the Atlantic on Wednesday, including green hydrogen specialist Ceres Power Holdings PLC (down 5.4%), AFC Energy and ITM Power (both down 9%).