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COVID-19, Featured

COVID-19: A Game-Changer For The Renewable Energy Industry

The Covid-19 pandemic has brought energy generation ranging from fossil fuels to renewable energy to breaking point. With the introduction of lockdown measures, the energy demand globally dropped at levels not witnessed in the last 70 years. 

According to studies, the entire energy demand decreased by 6%, and emissions related to energy decreased by 8%. Moreover, there has been a drop of 9% in oil demand and 8% in coal demand. Other than that, crude oil was also at its record low prices. 

Earlier cases of energy crisis offer insights into the things that happened when the price of oil crashed and how the utilization of fossil fuels rebounded. However, with the pandemic, things are different because it happens to be led by demand. 

Also Read: Blockchain Technology can increase Sales of Green Energy Vehicles

The scale of the speed of change, the fall in demand, and the widespread generation of radical shifts appear to be much lower than a short-term drop when it comes to the demand for fossil fuels within the power sector. With a demanding fall, energy resources, mainly solar energy and wind energy, witnessed their share in power substantially enhance at record levels in numerous nations. 

Country-Wise Energy Consumption Records

In a span of fewer than 10 weeks, the United States of America happened to increase the consumption of renewable energy by approximately 40%. India increased its consumption by 45%. On the other hand, Spain, Germany, and Italy set records concerning valuable renewable energy grid integration. 

Key Factors Behind the Importance of Renewable Energy in the Pandemic

Although the covid-19 pandemic happens to be unexpected and circumstantial, the renewable energy rise does not happen to be circumstantial. The increase in the utilization of renewable energy within the grid ends from a mixture of earlier regulations, policies, innovations, and incentives embedded within the energy sectors of various forward-thinking nations. Here we discuss the key factors behind this. 

  • Constant innovation: Renewable energy has turned out to be the cheapest energy source. As per recent reports, the price of solar energy has declined by 82% in the last decade and renewable energy presently happens to be the cheapest source of power in two-thirds of the globe. 
  • Favorable policy support: In various Nations, renewable energy receives priority with the help of market regulation. The priority concerning the initial batch of power to the network is provided to a less expensive source, hence favoring cleaner and cheaper sources. 
  • Investment preference: Now, renewable energy has turned out to be the preferred choice for new energy plants on the part of investors. For approximately two decades, the capacity of renewable energy has developed steadily, and presently, 72% concerning the new energy capacity happens to be a renewable plant.

Challenges Involved in the Path of Clean Energy

The path towards green energy development does not come without roadblocks. Challenges come in the form of changing or unclear regulations, prolonged land acquisition procedures, and lack of grid capacity. Furthermore, there happens to be a lack of business opportunities commercially viable concerning energy-efficient projects even after recognizing the possible benefits. 

Also Read: How Did the Covid-19 Pandemic Trigger Surge in Business Start-ups

Why is the Pandemic Opportune Enough? 

The covid-19 pandemic presents opportunities for policymakers to unlock social and economic benefits of low carbon power transition by reforming the sector of clean energy structurally. Although particular interventions are required to be localized concerning every market, offering a capable market framework with the help of appropriate regulations and incentives can help clear the pathway to quick deployment of renewable energy. 

Post-covid recovery environment demands coordinated action from numerous stakeholders. With more and more collaborations between the private and public sectors, economies can harness the immense potential of Clean Energy projects, hence offering to drive better social, environmental, and economic outcomes. The choices made today are likely to shape the economics of tomorrow. 

Benefits of Clean Energy Transition for the Economy

The clean energy transition can assist economies to build back better by backing responsible innovation and investment and adding to job creation. Supporting the clean power transition can assist the economy in achieving double goals of climate resilience and economic recovery with the help of reduction of emissions. 

Wrapping Up

The covid-19 pandemic has resulted in a game-changing effect in improving the clean power transition in the energy sector. Businesses, households, and governments have kept the lights on throughout the pandemic but with greener and cheaper energy. Infrastructure opportunities, innovation, stimulating investment, conditioning pandemic relief to clean recovery, and opportunities in digital and low-carbon technologies are expected to keep the clean power curve from flattening.

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