The future of renewable energy is still bright, although the damage caused by the global pandemic. The post covid-19 situation would require public administrations, government and healthcare associations to make right decisions in protecting us. The renewable sector would require getting back on track for a green and sustainable economy, though it has been impacted the most during the pandemic. The reason being the pandemic has impacted projects, equipment manufacturers and developers.
The condition of renewable energies before covid-19:-
The outlook for renewable energy was strong before the covid-19, despite public budgets being pressured. This was also because of the rising concerns for legal security for the country’s investment due to its reforms. There was a Levelized Cost of Energy (LCOE) achieved for wind and solar while money was flowing back in renewable projects.
This was supported by low rates of interest, low capex as well as the growing price curves in the future. This had also created Power purchase agreements (PPAs) by corporate and commercial off takers.
The effect of Covid-19 on Renewable energy sector:-
The impact could be seen in the form of delays in projects along with many long lasting impacts. The original equipment manufacturers have been facing difficulties due to lockdowns, labor issues and transit limitations. There are further more issues which include delayed approval from administration, issues in construction, port facilities and commissioning.
There are already delays made in projects commissioned in the next 18 months by developers. The other problem is also seen in consumption patterns which have been affected by the covid-19 pandemic leading to flattening of the domestic curve, along with the reduction in commercial and industrial segments’ shares.
The oil prices have also witnessed considerably low prices which can affect final investment decisions and incentives removal.
About the better project profile execution for renewable energy sector:-
There is a requirement of making portfolios around assets which are privileged along with power grid access and solid renewable resources. There is also a requirement of prioritizing on projects which can progress economically
This also includes adaption of organizations for promoting agile execution along with layouts and plant designs which are modular. This also includes capabilities permitting key markets, project financing and speeding up agreements with PPA expertise.
This further includes developing toolkits for with renewable intermittency for coping up flexibly on both demand and supply side. The crisis can be more than a hiccup during the long journey of meeting 2030 goals towards a decarbonized world.