COVID-19 pandemic has orchestrated economic recession in different nations. The epidemic started in China and spread throughout the globe. Additionally, the majority of industries are shut down due to either a government directive or lack of resources to continue production. Also, all nations have closed their borders to minimize the spread of coronavirus while other nations have conducted city lockdown to contain the virus in their respective cities. Since China is a major outsourcing country, its closure has stopped most companies from operating since new products like phones, vehicle parts, and other raw materials are not supply. The renewable energy sector is not left out in the pandemic. The earlier predictions by the International Energy Agency (IEA) may pale due to the impact of COVID-19 in human resource and supply of products.
According to IEA analyst, Heymi Bahar, the records set for 2020 may fail due to the negative impact of coronavirus. He further added that as days go by, new strategies to combat the virus are instigated that destroy the industry also. The IEA stated that a review is currently in the process concerning the 2020 goals set by the company. The company forecasted that by the end of 2020, 50 per cent of energy production would shift from fossil fuel to renewable.
The rules governing social distancing has stagnated the installation of solar panels since employees require to be close to each other during the installations. Social distancing has affected solar panel installation, although another renewable construction like wind turbines and hydropower construction is unaffected. Bahar stated that solar power might seem insignificant, but its contribution to global power energy is tabulated as 20%. Additionally, in the year 2018-2019, solar energy accounted for 40% of the total energy produced globally. He further notes that in 2018 the solar power contributed 26% of the worldwide electricity and according to IEA predictions, the percentage will rise to 50% by the end of 2024 hence generating 1,200 GW extra to the present capacity.
The oil industry has also encountered a drop in the oil price since the onset of the pandemic. The initial oil price stood at $66 per barrel. However, the price dropped to $30 per barrel due to the epidemic. The low oil prices have necessitated the investors to shift from fossil fuel to renewable since the renewable offer an attractive investment opportunity. Once the pandemic is over, a significant shift will occur from fossil fuel to renewable and new renewable industries will erupt.