If you think Donald Trump’s return to the White House is about to kill the renewable energy market, think again.
While there’s no doubt his administration could tweak or roll back Biden-era tax incentives, industry insiders say the momentum behind wind, solar, and energy storage is far too strong to reverse.
The numbers tell the real story: demand for power is skyrocketing, and capital is flowing into every corner of the energy market—fossil, clean, and everything in between.
Energy Dealmaking On The Rise
By the end of 2024, energy sector M&A activity had already outpaced the previous year, with green deals leading the charge. A recent report from Boston Consulting Group confirmed that climate and sustainability-focused transactions have been one of the biggest drivers of this trend.
Private capital isn’t sitting on the sidelines, either.
Just look at the $300 billion deal in which Danish energy giant Ørsted sold a stake in four U.S. onshore wind farms to Stonepeak. It’s part of a broader shift where utilities and developers are looking to cash out of de-risked, operational renewable projects so they can reinvest in their pipelines.
According to Matt Falcone, a partner at law firm Vinson & Elkins, these types of transactions are becoming the norm. “We’re hearing about at least a dozen such deals being discussed,” he says.
Energy Storage Is The Next Gold Rush
It’s no secret that wind and solar need better storage solutions, and investors are pouring money into battery tech and grid-scale storage at a breakneck pace. CRC-IB, a boutique investment bank specializing in renewables, has executed nearly 350 transactions in this space, raising over $70 billion in capital.
Partner Britta Von Oesen puts it bluntly: “The storage market is desperately underdeveloped.”
For major investors, the equation is simple. Renewable energy projects with built-in storage are not only more valuable but also more resilient to price fluctuations. As more states mandate energy storage alongside new solar and wind projects, expect a wave of capital to follow.
Not A Partisan Issue
Despite political rhetoric, the clean energy sector is thriving in Republican-led states. UBS research shows that more than 345 projects worth $136 billion have been launched since the Inflation Reduction Act (IRA) was passed, with the bulk of them in red states.
Manufacturing jobs, grid upgrades, and massive new energy projects are making it harder for even the most vocal GOP critics to argue against renewables.
Case in point: Republican Rep.
Lauren Boebert called a recent $100 million hydroelectric project in Colorado’s 3rd District a “major win” for her constituents—even though she voted against the IRA, which helped fund it.
Will Trump Change The Game?
It’s too early to say exactly how Trump’s policies will affect the sector, but analysts at UBS and Boston Consulting Group expect clean energy deals to remain strong due to ongoing investment trends and infrastructure expansion.
Tax credits and subsidies could be adjusted, but the broader demand for reliable energy sources remains unchanged. Catherine Flax, president of private markets at X Machina Capital Strategies, argues that “it’s no longer even a question of clean versus fossil—it’s all of the above.”
XMC, which invests in transformative energy solutions, is backing companies like Gradient Geothermal, which taps into hot fluids from oil and gas wells to generate power.
Another firm, Zefiro Methane, is turning abandoned well-plugging into a profit machine by selling carbon credit offsets.
Investors are following the trend, not the politics. The reality is that energy demand is at historic highs, and only a diversified approach—mixing renewables, nuclear, fossil, and storage—will keep the lights on.
Whether it’s wind, solar, or a new generation of fossil fuels, the money isn’t stopping anytime soon.
