COVID-19 Impact on the Global Renewable Energy Market Report 2020 - 2025 - Scenarios, Trends, Forecasts
/11th March 2021, MARTIN LEE WILSON, RENEWABLE MARKET WATCHTM/ This is the very first objective and in-depth report, which analyzes COVID-19 (Coronavirus) impact on the global renewable energy market by 2025 with scenarios, trends and forecasts. High oil prices, environmental crises, and increasing energy demand have been key driving forces for the rapid growth of renewable energy worldwide in the past few years. However, all these forces have been affected by COVID-19 (Coronavirus) and will have weaker support for the growth of the renewable energy industry. The economic growth has reversed toward a worldwide recession. The global economy contracted in 2020 by 3.5 percent - the worst recession since the Great Depression. The International Monetary Fund (IMF) predicts that amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The global number of cases COVID-19 (Coronavirus) has grown from only 580 on the 22nd of January 2020 to 103,030,000 on the 31st of January 2021. This rapid virus spread has brought severe disruption and uncertainty in the supply chain for all renewable energy technologies and the project finance market. Only in a few weeks, this new virus turned into a worldwide pandemic, which is challenging many governments, citizen and the global economy. Renewable power projects are particularly vulnerable because China as one of the most affected companies is a significant producer of solar photovoltaic modules and wind turbines. Do you want to know how the global renewable energy market shall be affected by the COVID-19 (Coronavirus)?
This report is essential reading for you or anyone interested in the fast-growing global renewable energy market, including capacity development trends overview, competitive landscape and forecasting how investment volume in this market will develop over the next 5 years. While the speed and complexity of COVID-19 (Coronavirus) make it almost impossible to know the full effect the virus will ultimately have on the world „we offer regular updates of this market study of what we know today and provide you with an important decision-making tool“, according to the report author Martin Lee Wilson. In the meantime, we continue to monitor the governmental response to the economic impacts of COVID-19 (Coronavirus) and the availability of financial streams available for renewable energy projects. The COVID-19 Impact on the Global Renewable Energy Market Report 2020 ÷ 2025 provides a comparative analysis of existing mechanisms supporting renewable electricity in 55 countries from all world regions and highlights the challenges and opportunities associated with their developments in the new market situation. You will also find a detailed explanation of how to classify renewable energy support schemes and their characteristics. Purchasing this report will aid your company’s ability to recognize important market opportunities and understand the possibilities for investment in this area, and to map risks and uncertainties due to the rapid spread of the COVID-19 (Coronavirus). The publisher of this report, Renewable Market Watch™, has distinguished itself throughout the years by publishing unbiased reports on the development of global renewable energy markets.
Chart 1: Global Cumulative Number of COVID-19 (Corona Virus) Cases for January 2020 – January 2021; Source: World Health Organization (WHO)
Our planet is warming up, and in response, people are trying to switch to cleaner energy, to heat it up less, or at least more slowly. Renewable power is increasingly cost-competitive compared to conventional fossil fuel-fired power plants. „Renewables have already become the world’s main source of new power generation, but they can also become the most competitive source of power by 2030“, informed Martin Lee Wilson. At the end of 2019, electricity generated from new wind and solar photovoltaics (PV) plants became more economical than power from fossil fuel-fired plants in many places. In addition, in some locations, it was more cost-effective to build new wind and solar PV power plants than to continue to run existing fossil fuel power plants. Record-low bids in tenders for renewable power were held in many countries worldwide, especially for solar PV and wind power. However, this development was not necessarily positive for the industry.
Renewable energy targets are in place in nearly all countries, and several jurisdictions made their existing targets more ambitious in 2020. The number of renewable energy support policies increased again during the year, mostly for renewable electricity. In the power sector, a general shift to auctions from feed-in policies and other support mechanisms continued, but feed-in policies remained widely used. In developing and emerging economies, distributed renewable energy systems continued to play an important role in connecting households in remote areas to electricity services. An estimated 5% of the population in Africa and 2% of Asia's population has access to electricity through off-grid solar PV systems.
The renewables revolution offers technology-driven energy generation and distribution, consistently and at an increasingly reasonable price. The energy sector itself is undergoing consolidation in some countries, while in others, new, smaller and more agile providers are stepping onto the stage at a steady pace. The private sector plays a key role in driving renewable energy deployment through its procurement and investment decisions. By the end of 2020, 290+ companies had joined RE100 – committing to 100% renewable electricity targets – up from 130 companies the year before. These and other private-sector targets have supported the expansion of corporate power purchase agreements (PPAs), spreading to new countries and regions but remain concentrated in the United States and Europe.
Chart 2: Global Cumulative Renewable Power Capacity Growth 2010 - 2020 (in GW); International Renewable Energy Agency (IRENA), International Energy Agency (IEA)
The global energy system is undergoing rapid transformation. With the 2030 Sustainable Development Goals and the Paris Climate Agreement serves as inspiration, countries, cities and corporations all over the world continue to take meaningful action on renewable energy development. 2020 was another historic year for the global renewable power sector mix. Renewable energy sources have continued to dominate new additions to the world’s power generation over the past year. According to data from the International Energy Agency (IEA) almost 90% of new electricity generation in 2020 will be renewable, with just 10% powered by gas and coal. The trend puts green electricity on track to become the largest power source in 2025, displacing coal, which has dominated for the past 50 years. Renewable capacity reached 2,738GW globally by the end of 2019, up 198GW from the previous year. More solar PV capacities were installed globally than any other power generation technology. Solar alone saw more new capacity deployed than fossil fuels and nuclear combined. Solar added almost twice as much capacity as its renewable peer, wind power. A total of 107GW of grid-connected solar photovoltaic (PV) capacity was installed globally in 2020 according to the International Energy Agency (IEA). This led to a total global cumulative solar photovoltaic (PV) power capacity of over 585GW in 2020 after the solar exceeded the 300GW mark in 2016 and the 400GW level in 2018.
Market Forecast Summary
This independent, 210+ page report of Renewable Market Watch™ analyzes the scenarios and the impact of the COVID-19 (Coronavirus) on the global renewable energy market. Through extensive research and discussions with experts in the industry, the Renewable Market Watch™ has identified a series of the established and new emerging market situations that will impact renewable energy equipment supply chain, procurement, investment volume and renewable power capacity additions by 2025 worldwide.
Industry analysts of Renewable Market Watch™ used a complex array of research sources and techniques to better understand the role of COVID-19 (Coronavirus) and its impact on the renewable energy market in all the 6 world regions and 55+ countries under different local regulations and support schemes. For this reason, a unique approach was applied in the segmentation process to achieve and present a better explanation of fundamental drivers and future dynamics behind the global renewable energy market growth. We suggest that the threat posed by climate change remains in force even as governments around the world at this moment focus their efforts on the current health and economic crisis. But today’s crisis COVID-19 (Coronavirus) should not reduce or postpone global efforts to fight the world’s climate change challenge.
Renewable Market Watch™ has advanced proprietary own developed software and analytical tools, which are based on artificial intelligence (AI) and neural networks for prediction and risk analysis with a focus to renewable energy and power market modelling. We have used these tools to create a new advanced econometric model of the global energy market by considering the recent power, oil and gas price dynamics. The model after that was linked to another model of the virus spread under several outbreak scenarios and this allowed us to aggregate all processed data into our market forecasts by 2025.
There are four fundamental key drivers behind the continuing renewable energy market growth at the global level, which is expected by 2025. These drivers shall not be much affected in the medium and long-term by COVID-19 (Coronavirus). The first one is the climate change policy to reduce global warming. The second one is the drastic reduction of feed-in tariffs in many countries. Therefore, feed-in tariffs started to lose their power as drivers of renewable energy growth since 2011 and this process will continue. The third one is grid parity, which is progressing and by 2025 a lot of countries will have grid parity for solar and wind energy. The fourth one is the growth of electric vehicles and related charging infrastructure worldwide.
With 245+ charts, maps and tables, together with detailed analysis and calculation of COVID-19 (Corona Virus) impact, policy and support schemes overview in 55+ countries, competitive landscape and investments trend forecast, the report gives you a perfect visual breakdown of the global renewable energy market by 2025.
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About Martin Lee Wilson
Martin Lee Wilson has over 3 decades of experience in design, installation and project management of HVAC systems and renewable energy projects. He has participated in important projects in the oil and gas and off-shore wind industries. Martin has also been involved in planning and implemented energy-efficient measures for living accommodation modules for remote areas. Recently invented with the support of a team of scientists and seasoned industry professionals a unique, cost-effective patent-pending concept of Self Contained Welfare Units. These units shall be self-water supplied, and self-power supplied using the latest technologies, making them completely independent and easy to deploy at any place in the world regardless of whether sources of water and power are existing or not. Therefore, Martin’s Self Contained Welfare Units equipped with all the necessary furniture and technologies for comfort and basic life-sustaining amenities are an ideal fast deployable living solution for construction projects in remote areas, ocean platforms, disaster-affected areas and virus pandemic affected communities.
About Renewable Market Watch™
Renewable Market Watch™ is delivering strategic insight into emerging renewable energy markets through its experienced research team and cutting edge predictive analytics data platform. We partner with our customers to provide research, data and consulting reports in areas appropriate to their specific requirements. Our primary focus is emerging renewable energy markets of the Asia Countries, Balkan countries, Central and Eastern Europe, CIS states (former Soviet Union), LATAM countries and MENA countries. For more information about Renewable Market Watch™ please visit: