Uncertainties around tax reform and other Trump administration policies have the potential to stall momentum for U.S. renewable energy projects headed into next year, according to Fitch Ratings.
"Recently proposed revisions to the U.S. tax code would reduce the value of production tax credits and in turn diminish the value of new renewable energy projects," said Senior Director Gregory Remec, according to Fitch Ratings in its 2018 Outlook Report released Wednesday.
"Separately, the Trump administration's possible import tariff on solar photovoltaic panels is likely to stall the development of new renewable energy projects and may significantly reduce the growth rate of renewable generation capacity,” he added.
Saying that despite the broader policy question marks, resource risk is improving for renewables, Remec argued: "Improving resource forecasts stand to benefit wind projects over time based on post-completion wind studies."
Fitch Ratings has a stable outlook in place for North American thermal power projects for 2018 thanks largely to fixed-price power purchase agreements in place that shield them from merchant energy market volatility.