Released June 02, 2020 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Renewable power generation development around the world has been hurt, but not halted, by the COVID-19 pandemic, the International Energy Agency (IEA) (Paris, France) said in a report issued late last month. However, the agency sees renewable power development bouncing back in 2021, assuming the renewal of supportive policies and extensions of existing government deadlines to reflect the global economic shutdown caused by the pandemic.
"The number of new renewable power installations worldwide is set to fall this year as a result of the unprecedented COVID-19 crisis, marking the first annual decline in 20 years," the IEA said in its Renewable Energy Market Update Outlook for 2020 and 2021. "But, given supportive government policies, growth is expected to resume next year as most of the delayed projects come online."
The IEA report, released May 20, said net new additions to global renewable generation capacity this year are expected to fall about 25,000 megawatts (MW), or roughly 13%, compared to 2019, a robust year in terms of capacity additions.
But in 2021, the IEA projected, "renewables are expected to show their resilience: the majority of the delayed projects are expected to come online, leading to a rebound in new installations. As a result, next year is forecast to reach the same level of renewable electricity capacity additions as in 2019," nearly 200,000 MW. Despite the expected rebound, combined growth in 2020 and 2021 is almost 10% lower compared with the previous IEA forecast published in October 2019, the agency acknowledged.
Click on the image at right to see the IEA's revised forecast of renewable generation capacity coming online in 2020 and 2021.
Around the world, solar photovoltaic (PV) generation additions in 2020 are forecast to decline to slightly more than 90,000 MW in 2020, down from more than 110,000 MW in 2019. In 2021, utility-scale solar PV projects are expected to rebound in 2021, but overall installations are unlikely to surpass 2019 levels, as there will be a "significantly slower recovery of distributed solar PV as households and small businesses review investment plans."
Click on the image at right to see the IEA's revised projection for solar PV net generation capacity additions for 2020 and 2021.
New wind generation capacity additions are expected to fall by about 10,000 MW from the agency's October 2019 forecast, to about 55,000 MW this year. But the agency sees wind rebounding in 2021, to add about 60,000 MW of new generation capacity around the world, roughly what it added in 2019.
Click on the image at right to see the IEA's revised projection for wind power net generation capacity additions for 2020 and 2021.
In a statement, Fatih Birol, the IEA's executive director, said: "The spectacular growth and cost reductions of renewables over the past two decades have been a big success story for global energy markets, driven by innovation in both technology and policies. But continuing cost declines will not be enough to protect renewables from a range of uncertainties that are being exacerbated by COVID-19. This underlines the critical importance of getting stimulus packages and policy strategies right, in order to ensure investor confidence in the months and years ahead."
Industrial Info is tracking about 64 renewable energy projects across the U.S. that have been, or may be, delayed or cancelled because of the COVID-19 pandemic. The collective value of these projects is about $6.6 billion.
Texas and California lead the pack in terms of dollar value of renewable energy projects that may be affected by the pandemic. Florida, Oregon and Montana also have a significant total investment value (TIV) of renewable projects that could be at risk for delay or cancellation.
Click on the image at right to see the 10 states with the greatest dollar value of renewable energy projects that have been, or could be, delayed or cancelled by COVID-19.
On June 4 at 10 a.m. (U.S. Central time), Britt Burt, Industrial Info's vice president of global research for the Power Industry will present IIR's mid-year outlook for North American Power Industry project spending for 2020 and 2021 in light of the COVID-19 pandemic. The webinar is complimentary but registration is required. Click here to register.
"The U.S. government classified the Power Industry as 'essential,' so project development and construction didn't have to stop when states enacted stay-at-home orders," Burt said. "However, the pandemic destroyed a certain amount of electric demand, requiring developers and utilities to recalibrate their plans. Few areas were enjoying robust electric demand growth before the pandemic, and a lot of market participants are in a 'wait-and-see' mode when it comes to new renewable resources."
Outside the U.S., Industrial Info is tracking an estimated 478 renewable energy projects under development that may be cancelled or delayed by the COVID-19 pandemic. The TIV of these projects is about $40 billion. The countries with the greatest potential for cancelled or delayed renewable energy projects due to the pandemic are Brazil, Argentina and Columbia.
Click on the image at right to see a chart of the two non-U.S. countries with the greatest dollar value of renewable energy projects that have or may be cancelled or delayed due to the COVID-19 pandemic.
Last week, another energy agency, the U.S. Energy Information Administration (EIA) (Washington, D.C.), said that in 2019, measured on a British thermal units (BTU) basis, U.S. annual energy consumption from renewable sources exceeded coal consumption for the first time since before 1885.
The agency said this is mainly a reflection of the continued decline in the amount of coal used for electricity generation over the past decade as well as growth in renewable energy, mostly from wind and solar. In 2019, U.S. coal consumption declined nearly 15% compared with 2018, while renewable energy consumption rose 1%. In 2019, renewable energy generation totaled 11.5 quadrillion BTUs (quads), while coal consumption fell to 11.3 quads.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
"The number of new renewable power installations worldwide is set to fall this year as a result of the unprecedented COVID-19 crisis, marking the first annual decline in 20 years," the IEA said in its Renewable Energy Market Update Outlook for 2020 and 2021. "But, given supportive government policies, growth is expected to resume next year as most of the delayed projects come online."
The IEA report, released May 20, said net new additions to global renewable generation capacity this year are expected to fall about 25,000 megawatts (MW), or roughly 13%, compared to 2019, a robust year in terms of capacity additions.
But in 2021, the IEA projected, "renewables are expected to show their resilience: the majority of the delayed projects are expected to come online, leading to a rebound in new installations. As a result, next year is forecast to reach the same level of renewable electricity capacity additions as in 2019," nearly 200,000 MW. Despite the expected rebound, combined growth in 2020 and 2021 is almost 10% lower compared with the previous IEA forecast published in October 2019, the agency acknowledged.
Around the world, solar photovoltaic (PV) generation additions in 2020 are forecast to decline to slightly more than 90,000 MW in 2020, down from more than 110,000 MW in 2019. In 2021, utility-scale solar PV projects are expected to rebound in 2021, but overall installations are unlikely to surpass 2019 levels, as there will be a "significantly slower recovery of distributed solar PV as households and small businesses review investment plans."
New wind generation capacity additions are expected to fall by about 10,000 MW from the agency's October 2019 forecast, to about 55,000 MW this year. But the agency sees wind rebounding in 2021, to add about 60,000 MW of new generation capacity around the world, roughly what it added in 2019.
In a statement, Fatih Birol, the IEA's executive director, said: "The spectacular growth and cost reductions of renewables over the past two decades have been a big success story for global energy markets, driven by innovation in both technology and policies. But continuing cost declines will not be enough to protect renewables from a range of uncertainties that are being exacerbated by COVID-19. This underlines the critical importance of getting stimulus packages and policy strategies right, in order to ensure investor confidence in the months and years ahead."
Industrial Info is tracking about 64 renewable energy projects across the U.S. that have been, or may be, delayed or cancelled because of the COVID-19 pandemic. The collective value of these projects is about $6.6 billion.
Texas and California lead the pack in terms of dollar value of renewable energy projects that may be affected by the pandemic. Florida, Oregon and Montana also have a significant total investment value (TIV) of renewable projects that could be at risk for delay or cancellation.
On June 4 at 10 a.m. (U.S. Central time), Britt Burt, Industrial Info's vice president of global research for the Power Industry will present IIR's mid-year outlook for North American Power Industry project spending for 2020 and 2021 in light of the COVID-19 pandemic. The webinar is complimentary but registration is required. Click here to register.
"The U.S. government classified the Power Industry as 'essential,' so project development and construction didn't have to stop when states enacted stay-at-home orders," Burt said. "However, the pandemic destroyed a certain amount of electric demand, requiring developers and utilities to recalibrate their plans. Few areas were enjoying robust electric demand growth before the pandemic, and a lot of market participants are in a 'wait-and-see' mode when it comes to new renewable resources."
Outside the U.S., Industrial Info is tracking an estimated 478 renewable energy projects under development that may be cancelled or delayed by the COVID-19 pandemic. The TIV of these projects is about $40 billion. The countries with the greatest potential for cancelled or delayed renewable energy projects due to the pandemic are Brazil, Argentina and Columbia.
Last week, another energy agency, the U.S. Energy Information Administration (EIA) (Washington, D.C.), said that in 2019, measured on a British thermal units (BTU) basis, U.S. annual energy consumption from renewable sources exceeded coal consumption for the first time since before 1885.
The agency said this is mainly a reflection of the continued decline in the amount of coal used for electricity generation over the past decade as well as growth in renewable energy, mostly from wind and solar. In 2019, U.S. coal consumption declined nearly 15% compared with 2018, while renewable energy consumption rose 1%. In 2019, renewable energy generation totaled 11.5 quadrillion BTUs (quads), while coal consumption fell to 11.3 quads.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
