- Engie is delaying new U.S. renewable energy projects due to uncertainty over tariffs on imported solar and battery materials.
- The company may redirect investment to other established markets such as Brazil, Australia, India, and the Gulf countries.
Engie, the French energy company, is scaling back new renewable energy projects in the United States due to uncertainty surrounding tariffs on imported solar and battery materials.
The company announced on Thursday, May 15, citing the shifting trade landscape and evolving U.S. policy under President Donald Trump, who has reimposed and adjusted tariffs on key trade partners, particularly China, the leading global producer of solar panels and batteries.
As Europe’s largest gas network operator, Engie has been aggressively expanding its renewable energy portfolio, especially in the U.S., where it currently has 11 gigawatts of generation and storage installed or under construction. However, the firm is now delaying approvals for new American projects that have not yet reached final investment decisions.
Engie’s Chief Financial Officer, Pierre-François Riolacci, explained the move to reporters, “We are slowing down new U.S. project approvals because of tariff uncertainty and the difficulty in setting final pricing for customers.”
He confirmed that projects already in development will proceed as planned. Adding to the challenge is the lack of clarity surrounding the Inflation Reduction Act (IRA), which former President Joe Biden introduced to boost clean energy investment through subsidies and tax incentives. President Trump, who is currently in office, has pledged to repeal the IRA, leaving its future in question.
Engie’s Chief Executive, Catherine MacGregor, said during an analysts’ call, “Clarity on the IRA is essential for projects that haven’t reached final investment decisions.”
MacGregor added that in light of the U.S. policy volatility, Engie may redirect capital to other established markets, including Brazil, Australia, India, and the Gulf countries.
Despite the strategic caution in the U.S., Engie reported a 0.5% year-on-year rise in EBIT (excluding nuclear power), reaching €3.7 billion ($4.14 billion). The result exceeded analyst forecasts, pushing Engie’s share price by 3% by 08:16 GMT.
However, Riolacci warned that full-year earnings may not match the first quarter’s strong performance, which benefited from high gas and electricity prices and elevated winter demand.
Engie maintained its 2025 guidance for net recurring income at €4.4 billion to €5 billion. Analysts at JPMorgan described the forecast as conservative, noting there is room for upward revision if the second quarter delivers similarly strong results.
The slowdown highlights the increasing impact of geopolitical and policy risks on the renewable energy sector, particularly in the U.S., where investment decisions are now being weighed against a backdrop of uncertain trade policy and shifting political priorities.