L R AS Published on Friday 27 March 2020 - n° 315 - Categories:various sectors
The epidemic is affecting the renewable energy market
Through corporate clients, the epidemic is affecting the renewable energy market. For the moment, we are beginning to perceive slowdowns in the rest of the economy,
which translates into some plant closures and unemployment of staff. Restaurants and supermarkets are already closing, which stops all energy deliveries and reduces any orders for new installations. The looming recession will lead to a drop in energy consumption. This is the current concern of supplier-developers.
The demand for solar and wind power has been the driving force behind a strong push in the renewable energy market. It has been stimulated by federal tax credits. It is hoped that the factors that have stimulated RE will continue, such as cheap solar and wind energy, volatility in the fossil fuel market, and customer, investor and employee demand for decarbonisation.
Even if these factors remain, a recession would reduce demand (it has fallen by 25% in Germany). Added to this would be the lack of solvency of companies, and of course increased competition from fossil fuels after their prices have fallen.
For the time being, electricity companies are indeed seeing a reduction in demand. Observers are monitoring demand trends in Texas to gauge what a collapse in oil prices will cause. Electricity demand may rebound quickly after the end of the epidemic, or the crisis may have had a lingering effect.
GreenTech Media of 25 March
