Renewable energy is also back in fashion in the US

With the exception of offshore wind, the rest of renewable energy is doing quite well in the US. The Big beautiful bill, Trump's July 2025 tax package, only partly abolished the Inflation Reduction Act (Ira) with which Biden had pushed renewables. With the uncertainties about the sector removed, investors have recalculated and repositioned themselves on clean energy, which had come from years of depressed prices. The S&P global clean energy index gained 59 per cent over one year, compared to 32.5 per cent over the same period for S&P global 1200 energy (fossil fuels) and 20.4 per cent for S&P global Bmi, which covers the entire world.

Last summer was therefore the key moment for renewable energy stocks in the US. "One of the turning points was the definition of the so-called 'Big beautiful bill', which clarified the rules of engagement and the extent of the reduction in subsidies,' points out Luca Moro, investment director of Fiee Sgr's SpesX fund. 'Before this measure, the market was discounting catastrophic scenarios due to uncertainty over Trump's intentions to dismantle Biden's Wrath. He adds: 'Although Trump has reduced incentives, the clarity of data provided by the new framework has allowed investors to update their models and return to investing in the US supply chain, as reality has turned out to be less negative than the worst forecasts'. Much ado about nothing. "Although some unfavourable changes were made to the Ira, such as the blocking of new offshore wind projects, in the end these turned out to be much less burdensome than expected," confirms Hannes Loacker, developed markets equity manager, Raiffeisen Capital Management.

Then there is the demand for energy from the increasingly voracious data centres. 'The boom in artificial intelligence, which is increasingly evident and driven by new data centres, is substantially increasing the demand for electricity in the US,' says Loacker. 'This has multiple benefits: new project contracts for renewable energy companies and the possibility of negotiating much more advantageous long-term power purchase agreements due to higher electricity prices. Of the same opinion Moro emphasises another point in relation to the Old Continent. 'In Europe, the transmission and distribution network is on average more than 40 years old and needs not only modernisation, but also structural reinforcement'. Effects? "This change of pace will radically transform the economic profile of grid companies such as Terna, National Grid or E.ON. Considered as drawer companies with modest growth, they will become high-growth companies as governments will have to increase guaranteed returns to allow these operators to raise the necessary capital for such large investments'.

Finally, the ongoing conflicts. "From a geopolitical point of view, the conflict in the Middle East introduces volatility in the short term, affecting commodity prices and market sentiment," says Sanaa Hakim, co-portfolio manager of Robeco Smart Energy. "However, the long-term picture remains unchanged: the need to reduce dependence on fossil fuels and strengthen energy security continues to underpin the theme of electrification. In this context, opportunities emerge related to 'smart' energy solutions, grid resilience and energy access'. He adds: 'On a sectoral level, any prolonged tensions could temporarily weigh on Asian stocks, particularly South Korean, due to concerns about energy supply.