“Next year will be a challenging one for solar, too. We assume that the economic damage caused by the pandemic and concurrent crash in oil prices will tip the world into recession in 2020," WoodMac Principal Analyst of Solar Tom Heggarty said
April 10, 2020. By News Bureau
As the world economy faces austere economic disturbance due to the Coronavirus pandemic, global solar PV installations are projected to drop 18 percent from 129.5 GW to 106.4 GW in 2020, as per Wood Mackenzie.
It believed the pandemic will have a substantial impact on the global solar PV market and the construction and development is decelerating as countries around the world impose unprecedented lockdowns.
“Next year will be a challenging one for solar, too. We assume that the economic damage caused by the pandemic and concurrent crash in oil prices will tip the world into recession in 2020," WoodMac Principal Analyst of Solar Tom Heggarty said.
Although a strong economic recovery is anticipated next year, projects that should be conveyed in 2021 are being developed and financed today. When the recession hits, not all activity will go ahead as planned.
“Demand destruction will be offset to some degree by the spill-over of delayed projects from 2020 to 2021. Nonetheless we have reduced our 2021 forecast from 127.2 GW to 123.6 GW, down 3 per cent,” Heggarty said, adding the impact of the disruption will vary by country. In China – the initial epicentre of the outbreak – economic indicators suggest a recovery is underway.
According to WoodMac, wafer, cell and module production is ramping back up towards full capacity and construction at many project sites has resumed. The firm does not expect the impact on the Chinese PV market, either upstream or downstream, will continue beyond the end of the second quarter this year.
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