Republican control of the U.S. government is likely to bring an easing of emissions regulations, more protections on trade and departure from the Paris Agreement, Wood Mackenzie analysts said.
However, renewable power should keep advancing thanks to its strong economics and the momentum generated by the Inflation Reduction Act.
“The IRA has supported over $220 billion in manufacturing investment, and much of this has been concentrated in Republican-led states,” said David Brown, director of energy transition service at WoodMac. “The likelihood of a full IRA repeal is low.”