As GMO points out – clean energy has gone through a classic hype cycle.
All the relative outperformance blow out has come off.
Yet, change could be afoot – especially as firms focus on profitability – as described in this excellent analysis from AlphaSense (need to sign up).
Government policy is helping – here is what GE said about the big incentives offered by the Inflation Reduction Act (IRA).
“I know the IRA has created an eight year incentive, an incentive through 2030. That was enough of a long-term incentive for a few of the manufacturers that I know of that were making big decisions on supply chain changes, onshoring things, changing from China sources. In the absence of IRA incentives they would not happen. They would be small changes.“
