What is the IRA mentioned in the "Post-IRA Energy Shift" theme?

The IRA refers to the Inflation Reduction Act, a major piece of legislation passed in 2022 that includes significant tax credits and incentives for renewable energy development in the United States. The "Post-IRA Energy Shift" theme focuses on potential changes to these policies, particularly proposed legislation that would tax wind and solar projects using Chinese-made components.

What are small modular reactors (SMRs)?

Small modular reactors (SMRs) are advanced nuclear reactors that are smaller than conventional reactors and can be factory-assembled. They're designed to be safer, more flexible, and more cost-effective than traditional nuclear plants. Companies like SMR (NuScale Power) are developing this technology as a carbon-free alternative to both fossil fuels and intermittent renewable sources like wind and solar.

Why would taxing Chinese-made renewable components benefit natural gas companies?

If Chinese-made components for wind and solar projects face new taxes, it would likely increase the cost and slow the development of these renewable energy projects. This could create a gap in energy supply that natural gas, as a relatively cleaner fossil fuel, would help fill. Natural gas is often considered a "bridge fuel" that can provide reliable power while producing fewer emissions than coal, making companies like EQT and LNG potential beneficiaries of such policy changes.

What's the connection between uranium stocks and this energy policy shift?

Uranium is the primary fuel for nuclear power plants. If policy changes make wind and solar development more expensive or difficult, nuclear power could gain more support as a carbon-free alternative. Companies like CCJ (Cameco) and UUUU (Energy Fuels) that mine and process uranium would benefit from increased demand for nuclear fuel, especially in a policy environment that favors domestic or non-Chinese supply chains.

How do companies like FSLR and ARRY fit into this theme?

First Solar (FSLR) and Array Technologies (ARRY) are U.S.-based manufacturers of solar panels and solar tracking systems, respectively. Unlike many competitors that rely heavily on Chinese-made components, these companies have more domestic or non-Chinese supply chains. If legislation taxes Chinese components, these companies would gain a competitive advantage over rivals who would face higher costs, potentially increasing their market share in the U.S. renewable energy sector.

16 handpicked stocks

Post-IRA Energy Shift

A carefully selected group of energy companies positioned to benefit from potential U.S. policy changes affecting renewables. These stocks were handpicked by our analysts to give you exposure to nuclear, natural gas, and domestic manufacturers that could gain market share if Chinese-component taxes are implemented.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 30