President Joe Biden’s shaky debate performance last week has highlighted concerns over political risk in the renewable energy sector, according to Marathon Capital Founder and CEO Ted Brandt.

Brandt pointed to the possibility that a Trump administration could make changes to the Inflation Reduction Act (IRA), Biden’s signature renewables-focused legislation, to pay for an extension of the 2017 tax cuts. Following Biden’s shaky debate performance on 27 June, industry pros are taking that possibility more seriously, Brandt said on Crossroads: The Infrastructure Podcast.

“Up until last week, the industry feeling was wild optimism, lots and lots of capital that had been raised around the sector, no real doubts about public policy,” Brandt said. “Thursday’s events clearly changed that.”

Brandt cited one client who initially planned to do a capital raise but instead decided to pursue a sale after seeing former president Donald Trump gain momentum.

But overall, Brandt said, 2024 has brought a “much more constructive market” than the previous 18 months.

“We’re seeing an awful lot of deals being done. We’re seeing a lot of capital in the market. We are seeing a lot of inventory in the market,” Brandt said. “And while I wouldn’t call it anything close to a bull market a la 2020 or 2021, it is 50, 60% better than it was in 2022 or 2023.”

To listen to the podcast, click here.