Proposed US tariffs will increase prices on already pressurised renewables and create bottlenecks for low-carbon development, a leading industry advisor has warned.
Speaking at a webinar reflecting on 2024 developments and looking forward to what’s in store in 2025, Iben Furst Frimann-Dahl, Partner, Advisory at Rystad Energy, said renewables are already being impacted by high negative prices and lower capital rates.
“While textbooks tell you how tariffs lead to losses, what I want to say is how these losses will hit the market harder in 2025 than during President Trump’s first term, and the reason for that is we’re moving towards a market from tailor made and bespoke solutions to more standardised energy,” she said.
“However we are seeing one positive change, moving into 2025 and 2026 for low-carbon energy growth, and that’s lower interest rates, which could counter some of the cost effects of the tariffs. The overall effect is still unknown.”
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