L R AS Published on Saturday 21 March 2020 - n° 314 - Categories:the manufacturers, on request
RE less affected than the rest of the economy?
This article, which is specific to Spain, can be extended to all renewable energies.
The Spanish electricity sector seems to be doing better than most other sectors, even if there is a weak demand for energy
Spain has just entered
in a fifteen-day period of confinement which eliminates all travel, meetings, access to restaurants. This country is the 2nd most affected country in Europe by the epidemic.
A Spanish green energy retailer does not foresee any problems with electricity supply during the lockdown. It will be one of the sectors least affected by the containment. The only apprehension would be a reduction in demand for electricity from the population, which would affect green energy supplies. For the moment, it is too early to assess the reduction in energy demand related to the decline in commercial and industrial activity. Some large industrial companies have reduced their consumption. Seat, for example, has closed Spain's largest car production plant. The turbine manufacturer Siemens Gamesa has reportedly closed its San Fernando de Henares factory in Madrid.
The Spanish government planned to launch an auction by the end of April. It seems increasingly necessary to postpone them.
The outbreak could have an impact on the supply of renewable energy, not only by interrupting administrative functions for weeks or even months, but also by potentially slowing down economic activity and demand for electricity to the point where no additional capacity is needed for some time.
Lenders may consider investment in power plants as the best choice compared to other asset classes. Hotels, restaurants, travel, sports and cultural events are particularly affected. The crisis will bankrupt most of the world's airlines by the end of May, according to Capa (Editor's note: the International Air Transport Association (IATA) estimated on 19 March that airlines need emergency assistance of $200 billion).
GreenTech Media of 16 March
