Renewable energy stocks rose after the US midterm elections gave Democrats control of the House of Representatives and a majority in the Senate. The result lifted the market value of developers worldwide and raised expectations that the industry could face less political interference under the divided balance of power in Washington.
Ørsted, the world’s largest offshore wind developer, gained almost 10% in the hours after the result was confirmed, before ending the session nearly 5% higher. Other European companies with US operations also advanced: Portugal’s EDP Renewables and France’s Engie rose by more than 3%, while Germany’s RWE added about 1%.
The gains offered a modest lift to Ørsted, whose market value has fallen by more than 70% since Donald Trump returned to the White House in 2025. The company has faced repeated stop-orders affecting its Revolution Wind project, amid opposition from an administration that has criticized wind farms and supported the fossil fuel industry.
The political shift could help protect federal support for clean energy. Rystad Energy chief economist Claudio Galimberti said a Democratic-led House could block further efforts to repeal solar and wind tax credits. Battery storage credits may also have stronger backing in budget negotiations, while the administration’s roughly $4bn in offshore wind lease buybacks could receive greater scrutiny.
Analysts cautioned that the election was too early to mark a turning point for US offshore wind. However, Morningstar analyst Tancrede Fulop said the outcome could reduce the risk of further regulatory disruption and provide a more stable environment for projects already in development. Greater confidence around rules and future returns could also help make new renewable projects cheaper to finance, according to Barclays analysts.
The US renewable sector includes projects with a combined capacity of 388 gigawatts and directly employs more than 400,000 people. Wind, solar, hydro and geothermal sources supplied about 30% of US electricity this year. Meanwhile, 24 states and the District of Columbia have plans to reach 100% clean electricity or net-zero emissions between 2035 and 2050.
Developers of onshore renewables, including battery projects, may also benefit from political changes at state level. Atlantic Council fellow Brenda Shaffer pointed to Republican states that turned blue in the election, including Texas, Maine, Kansas, Ohio, Iowa, North Carolina and South Carolina, as possible sources of increased support for clean energy investment.
Shaffer said concerns about energy costs and the electricity needs of AI data centres were central to the election. Those pressures have raised questions about whether growing demand could increase reliance on gas power plants and complicate clean energy goals. American Clean Power Association chief executive Jason Grumet said the result showed that voters prioritize affordable, reliable power, adding that the industry was ready to provide it.
Sources: The Guardian Business.