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English World Far East

Covid-19 damages global renewable supply chain

in Far East, Sectoral, Tourism, Travel, Vacation, World
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Covid-19 damages global renewable supply chain

The impact of the coronavirus is a major concern for the global wind industry describing it as “a crisis unlike anything the market has ever seen,” according to global energy consultancy firm Wood Mackenzie’s statement late Tuesday.

The coronavirus (Covid-19) spread is expected to result in a 4.9-gigawatt (GW) decline in 2020 wind energy additions, Wood Mackenzie said.

According to the consultancy, “the state of the pandemic is evolving on an hourly basis, resulting in a highly reactionary environment.”

For solar energy, the global coronavirus outbreak has resulted in shutdowns in Spain, Italy, Malaysia and parts of the U.S. which will impact solar inverters and module production.

In the U.S., ports are likely to remain open and site construction could continue but impacts from smaller bill-of-materials equipment and project permitting delays will hamper production, the consultancy said.

Battery production is seeing a trend difference with a ramp up in in both China and South Korea, while automotive manufacturing facilities in Europe and North America are closing down or shifting to produce medical equipment.

However, WoodMac. stated the impact on electric vehicle sales is too early to tell although sales remained strong through February while near-term project execution and demand for grid applications would be driven by local demand.

WoodMac. estimates the impact on technology supply chains and installations are coming into view, while existing generators navigate crashing demand and margins.

The consultancy maintained that the primary risk to regional power markets is a prolonged recession.

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