By Danilo Masoni
MILAN (Reuters) – Renewable energy shares, reeling from an investor retreat, face extended uncertainty as the U.S. election has added to wariness, leaving only selected stocks poised to benefit from any boost lower interest rates could provide to funding.
The sector achieved bubble-like valuations in 2020-21, as major funds piled in, attracted by falling development costs.
Since then, the gains have been reversed by factors including renewable competition from China, a resurgence in the returns on conventional energy, and structural issues for renewable sources linked to supply chain disruption, a shortage of grid connections and planning issues.
For the United States, the Inflation Reduction Act (IRA) has proved a spur to renewable investment, including in some Republican states, which leads some analysts to say its benefits will continue.
Others say the prospect of former Republican President Donald Trump…
