NewEnergyNews: The Energy Transition Will Not Stop (But Will Slow)


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  • MONDAY’S STUDY AT NewEnergyNews, August 10:
  • The World’s New Energy Right Now

    Friday, April 03, 2020

    The Energy Transition Will Not Stop (But Will Slow)

    COVID-19 will slow the global shift to renewable energy, but can’t stop it

    Peter Fox-Penner, March 31, 2020 (The Conversation)

    “…[The renewable energy industry] has run into stiff headwinds as a result of three era-defining events: the COVID-19 pandemic, the resulting global financial contraction and a collapse in oil prices…[They will likely cause] significant short-run contraction followed by a catch-up period over the next few years that returns us to the same long-term path – perhaps even a better one…Economic contractions reduce power demand, because every form of economic activity requires electricity, directly or indirectly… Utilities will tighten their budgets and defer building new plants. Companies that make solar cells, wind turbines and other green energy technologies will shelve their growth plans and adopt austerity measures…Countervailing factors will partly offset this decline, at least in wealthy countries. Many renewable plants are being installed for reasons other than demand growth, such as clean power targets in state laws and regulations, and are already under contract or construction…

    Fifty U.S. utilities have already committed to carbon reduction goals, including 21 companies that pledge to become carbon-free by 2050…Voluntary green energy purchases by U.S. companies increased by almost 50% in the last year…[tp] almost 1% of all U.S. power capacity. And residential customers are choosing to buy more renewable energy…[W]here policies do not effectively mandate renewable energy, continued or even new use of oil and gas generation will look cheaper…This is especially worrisome in emerging nations, where the overwhelming imperative is to expand electricity supply as cheaply as possible…But these effects will not be uniformly negative, and nothing about this crisis will change the long-term trend toward carbon-free energy. Once the global economy bounces back, perhaps this episode will convince world leaders to accelerate climate policy efforts…” click here for more


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