The impact of COVID-19 on renewable capacity developments
The ongoing COVID-19 pandemic caused a major drop in global economic activity, but with the recovery of the economy taking shape, power prices and demand are recovering too.
The adverse shift in market conditions will impact the development of renewables capacity installations in the years ahead. This is particularly given by the uncertainty concerning the future economic development, the dip in power prices and demand, and supply chain and operations-driven delays.
In this study we examine how renewable capacity developments have changed in light of the COVID-19 pandemic. The study focuses on three renewable energy technologies (solar photovoltaics (PV), onshore wind and offshore wind), and eight regions (the Baltics, Belgium, France, Great Britain, Netherlands, the Nordics, Poland and Spain).
AFRY’s analysis unveils three underlying characteristics in market developments:
- continued underperformance;
- recovery to pre-COVID-19 expectations; and
- outperformance of prior expectations.
All of these can be found to a varying degree in the technologies and regions under invesitgation. It will therefore be of interest for investors, developers and related stakeholders to revisit their strategic focus and adjust accordingly for the present, near future and long term.