Several green energy stocks, including KPI Green Energy, ACME Solar Holdings and Suzlon Energy, lose significantly in intraday trade on the BSE on Friday, January 24. KPI Green Energy share price dropped 5 per cent to hit its lower circuit of ₹351.70, while ACME Solar Holdings share price fell 3 per cent to an all-time low of ₹202.85. Suzlon Energy share price fell over 3 per cent during the session.
Why are green energy stocks falling today?
Several green energy stocks have been under pressure of late. Experts see a Trump connection behind the recent underperformance in green energy stocks. They say Trump’s return to the White House has threatened the US clean energy investments and growth.
US President Donald Trump has been vocal about fossil fuels. He is preparing for a major shift in US energy policy with a major focus on oil and natural gas. As Mint reported earlier, Trump said on Monday, January 20, that he would declare a national energy emergency to boost US oil and gas production.
According to a Bloomberg report, the Trump administration is freezing authorizations for wind and solar projects on federal lands and water.
“President Donald Trump and his nominees have championed oil, gas and coal production while disparaging renewable power as unreliable. Hours after taking office, Trump blocked the sale of new leases for offshore wind farms and ordered the Interior Department to halt permitting turbines on federal lands and waters,” the Bloomberg report said.
Moreover, addressing the World Economic Forum in Davos, Trump promoted coal as a power source. He also called on Saudi Arabia and OPEC to lower oil prices. If that happens, it could stimulate the consumption and demand of oil, potentially diverting attention from green energy initiatives.
Green energy: Poised for a healthy growth in India
Experts are positive about the long-term growth prospects of the sector amid growing power demand. According to Crisil, India may see a five-fold growth in green investments to nearly ₹31 lakh crore between 2025 and 2030.
Crisil underscored that among India’s key NDC (Nationally Determined Contribution) commitments are a 45 per cent reduction in the carbon intensity of its gross domestic product (GDP) by 2030 from 2005 levels, and an increase in the share of cumulative installed power capacity from non-fossil-fuel-based energy resources to 50 per cent.
“Our energy needs will only accelerate from here, so a balanced transition to net zero is crucial. Notable strides have been made towards our green goals. Based on the plans announced by the government and corporates, and progress on the ground, we estimate ₹31 lakh crore of green investments through 2030,” said Amish Mehta, Managing Director & CEO, Crisil.
“Accelerating grants and incentives, scaling up blended finance initiatives with multilateral policy support and flexibility to drive initiatives for carbon market development and industrial decarbonisation are imperatives in the road ahead,” Mehta said.
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