Samil PwC "Trump's Second Term Will Not Affect Solar Power"

"Economically Viable Renewable Energy"

With the launch of Donald Trump's second administration, changes in U.S. energy policy are expected, but an analysis suggests that economically viable renewable energy sources like solar power will not be significantly affected. It is argued that the Korean government and companies should assess the direction of energy changes from an economic perspective and seek business opportunities.

Eyrun van Hoff, PwC Global Energy, Utilities and Resources Leader, is delivering a keynote speech on the growth of renewable energy after the second Trump administration on the 21st at Amore Hall, 2nd floor of the headquarters in Yongsan-gu, Seoul. Photo by Samil PwC

Jeroen van Hoof, PwC Global Energy, Utilities and Resources Leader (Partner), said at a seminar held on the 21st at Amore Hall on the 2nd floor of the headquarters in Yongsan-gu, Seoul, titled "Trump 2.0, Outlook on the Korean Energy Market and Corporate Response Strategies Amid Global Environmental Changes," that "Renewable energy may experience short-term impacts regionally and by power source after Trump's second term, but it will not be significantly affected in the long term," adding, "Especially for renewable energy sources like solar power that already have economic viability, the impact is expected to be minimal."

Paul Nielsen, PwC Global Power and Utilities Advisory Leader (Partner), explained, "Solar power has made the greatest contribution to the growth of renewable energy," and added, "To achieve net-zero targets, renewable energy must grow faster, and solar and wind power will play important roles." He further noted, "Renewable energy faces several challenges such as economic viability, sustainability, and resistance to infrastructure construction, so solutions to address these issues must be found."

Yoo Won-seok, PwC Consulting Partner, said, "Blue hydrogen, nuclear power, and solar power will be maintained, but relatively less economical offshore wind power and green hydrogen will be impacted," and predicted, "If the U.S. shale gas production increase is implemented immediately, prices within the U.S. will fall, and the global energy market will stabilize in the long term." He also suggested, "Domestic companies need a flexible response strategy that considers the policy lag caused by the enactment and revision of laws rather than reacting sensitively to policy changes at the beginning of Trump's administration."

Regarding trends in energy policy changes after the U.S. presidential election, Niloufar Molavi, PwC Global Oil and Gas Leader (Partner), said, "Environmental regulations introduced under the Biden administration will disappear, leading to increased oil and gas production, but it will take time for this to affect supply prices," and predicted, "Tax credits under the Inflation Reduction Act (IRA) have also influenced jobs, investments, and energy source development, so it is more likely that they will be partially removed or standards tightened rather than completely abolished."

The seminar was organized to forecast the direction of global decarbonization and energy transition, discuss changes in Korean energy policy and market accordingly, and explore response strategies for domestic companies. It was held simultaneously on-site and via online live streaming, with about 600 attendees including officials from the Ministry of Trade, Industry and Energy, Korea Power Exchange, and corporate representatives.

Meanwhile, Samil PwC Energy Transition Center brings together domestic and international energy experts to provide customized integrated solutions for clients, ranging from establishing business strategies considering sustainability to investment for business opportunity expansion, mergers and acquisitions (M&A) advisory, and tax consulting.

This content was produced with the assistance of AI translation services.