Green energy stocks set to run higher as Biden wins presidency
November 13, 2020 PV InfoLink
As the Associated Press announced Biden’s victory over Donald Trump, the prospect of green energy stocks becomes even brighter, with the Solar ETF (TAN) having surged 145.3% thus far.
Unlike the Trump administration that doubts the science of climate change, Joe Biden pledges to revitalize the US energy sector, proposing a $2 trillion climate package over four years to build more PV systems and EV charging stations, as well as upgrading grid network. Mr. Biden also promises to rejoin the Paris Agreement in “exactly 77 days."
Regarding the Democrat campaign’s stance on fossil fuel, Biden has said he would not ban fracking, but will end the launch of new projects to achieve an emissions-free power sector by 2035 and net-zero emissions by 2050.
Biden’s victory in the US election is certainly good news to solar stocks and the global solar sector. The market expects that the Biden administration would boost the green economy. On Nov. 9, Longi Green Energy’s share closed 1.2% higher on the Shanghai Exchange, while GCL-Poly Energy’s share surged 6.6%.
In light of this, PV InfoLink projects that the annual module demand will maintain at more than 20 GW in the U.S. from 2021 to 2025. Compared with this year, demand is forecast to reach 22 GW in 2021, up 30%. US demand is expected to grow each year toward 2023, the final year of the solar investment tax credit (ITC).
Despite optimistic outlook for renewables, the U.S.’ move to ban forced-labor goods from China may remain unchanged under a Biden administration. Earlier in July, the State Department issued an advisory warning of forced labor in Xinjiang, a major hub of polysilicon production in China. Later in September the U.S. House of Representatives passed a bill seeking to block imports of goods made with forced labor in Xinjiang.
The Solar Energy Industries Association (SEIA) also calls on PV companies to remove their supply chains out of Xinjiang.
While Biden’s campaign has proposed many climate policies, his agenda still faces uncertainty if Republicans maintain control of the Senate.
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