How Will Coronavirus Affect Renewable Energy?

Is there anything coronavirus doesn’t affect?

Renewable energy is obviously a huge trend. And it’s such a big deal because it does so much good for our earth, which most believe is in grave danger due to human activity.

So what’s happening in that industry right now and the foreseeable future?

Here’s some findings:

1. So Far, Not So Good

All sorts of data point to a dampening on the renewable energy industry amid COVID-19. Per a 2020 CohnReznick report:

• Wood Mackenzie Power and Renewables now forecasts global PV installations to be at around 106 gigawatts. That number falls from 130, representing an 18.4% decrease. They have a similar finding for the US.
• US residential demand will fall 40%.
• Wood Mackenzie also found wind installations will fall about 5% thanks to coronavirus.
• For renewable energy storage, Wood Mackenzie also projects a 20% decrease.

In other words, the outlook for renewable energy isn’t too good.

At the same time, the general consensus is that the renewable energy market will begin to recover in 2021.

So, not all hope is lost.

2. Solar Energy May Lose Half Its Jobs

The coronavirus pandemic, combined with our current president’s lack of support for renewable energy, may result in the solar energy industry losing 120,000 of its current 250,000 jobs.

This prediction was back at the end of March, when coronavirus was first unleashing its chaos.

Projections have a way of changing over time, so this could mean they may not end up as bad as initially thought.

But whatever the case, the outlook doesn’t appear too good.

Prior to coronavirus, projections called for a marked increase in solar energy jobs.

3. The Future for the Moment, Does Appear Bleak

Renewable energy growth has skyrocketed over the past 20 years. You really can’t make any argument otherwise.

The International Energy Agency says these are the current barriers to progress in renewable energy use:

• Supply chain disruptions
• Government incentives ending this year
• Tighter public and private budgets
• How economic stimulus packages are constructed

With the government incentives, for example, wind farm developers have to connect their project to the grid by the end of December to qualify for government incentives.

However, with the disruption caused by coronavirus, that won’t be possible for many.

For now, it looks as though renewable energy won’t be increasing growth. Everything that could go wrong has, and American policymakers aren’t interested in helping out.

So, all you can do is brace for what’s going to happen, and hope for the best.