Renewable energy shares rise after Democrats win control of Congress

Analysts see fewer regulatory risks, but no offshore wind turning point yet

The market value of renewable energy developers climbed across the world’s financial centers after the 2026 US midterm elections confirmed that Republicans had lost control of the House of Representatives and the Senate. Ørsted, the world’s largest offshore wind developer, saw its market value jump almost 10% within hours of the Democratic victory before closing nearly 5% higher. The share prices of other European renewables companies active in the US also climbed: Portugal’s EDP Renewables and the French utility Engie rose more than 3%, while shares in Germany’s RWE added about 1%.

The rally marks a modest boost for Ørsted, which has lost more than 70% of its market value since Trump returned to the White House in 2025 and resumed his opposition to the industry as it struggled against fast-rising interest rates and supply chain pressures. For the Danish company, the shift in power could spell a reprieve for its multibillion-dollar offshore wind investments off the north-east US coast. The White House has levelled multiple stop-orders against Ørsted’s Revolution Wind project since Trump’s re-election. Trump has repeatedly opposed the development of what he calls “ugly, costly and inefficient” windfarms in the US and abroad.

Market analysts said the Democrats’ decisive control of the House and their majority in the Senate may reduce the risk of further political interference and bring fresh confidence to the US renewable energy industry. Claudio Galimberti, chief economist at the consultancy Rystad Energy, said the Democratic House would be able to block further repeals of solar and wind tax credits. Battery storage credits would also have a stronger defender in budget negotiations, he said, and the administration’s roughly $4bn in offshore wind lease buybacks would face greater scrutiny.

Tancrede Fulop, a senior equity analyst at Morningstar in the Netherlands, said it was too early to call the result a turning point for US offshore wind. The outcome might lower the risk of further regulatory disruption and provide a more stable backdrop for projects under development, he said. “For companies that have spent the past few years dealing with regulatory delays and shifting political priorities, a more supportive backdrop should provide some much-needed confidence around projects already under development,” Fulop said.

Analysts at Barclays said the change may ease investor jitters around regulatory uncertainty and support confidence in future project returns, which could make new US renewable energy projects cheaper to finance.

The US market at stake is considerable. The country is home to renewable energy projects with a combined capacity of 388 gigawatts, enough to power more than 83 million American homes, and the sector directly employs more than 400,000 people across the country. Wind, solar, hydro and geothermal projects made up about 30% of the electricity generated across the US this year, well below the 50% share across the EU and China’s 40%.

There is no binding US-wide clean energy target, but 24 states, plus the District of Columbia, have plans to achieve 100% clean electricity or net zero carbon emissions between 2035 and 2050.

Brenda Shaffer, a senior fellow at the Atlantic Council’s Global Energy Center, said the result reflected the concerns that decided the election. “This was unquestioningly an energy election,” Shaffer said. Rising concerns over energy costs and the looming impact of datacenters on energy supplies played a key role in the Republican defeat, she said.

There has been growing disquiet over whether the forecast surge in electricity-hungry AI datacenters poses a threat to green targets by increasing US reliance on gas power plants and energy costs.

The outlook is brighter for developers hoping to build new onshore renewable energy projects, including batteries, which are typically decided at state level, Shaffer said. A string of Republican states have turned blue — including Texas, Maine, Kansas, Ohio, Iowa, and North and South Carolina — potentially ushering in greater support for clean energy investments.

Jason Grumet, chief executive of the American Clean Power Association, said the “blue wave” had made it clear that “affordable, reliable power is a priority.” “And our industry is ready to deliver it,” he said.

Two questions remain open: how the surge in datacenters’ electricity demand will be met without increasing reliance on gas generation, and how quickly a calmer regulatory environment can reach project financing, which analysts said could make new US renewable projects cheaper to fund.