Impact of COVID-19 on the Global Distributed Generation Market
The energy industry is transforming due to factors such as the growth in automation, rising sales of electric vehicles, increasing grid-scale energy storage, and focus on decarbonization and decentralization. It is creating new business models to transform efficiently and increase the development of new technologies that generate electricity at a place near or where it is used. Such technologies are a part of the distributed generation. These technologies include solar panels, combined heat and power, microturbines, fuel cells, and others. As per the US EIA, distributed generation technologies are likely to experience significant growth till 2050, with solar PV dominating as a whole.
FIGURE: WIND GENERATION IN THE US, 2011-2019 (MWh)
However, COVID-19 pandemic has led to a decline in the growth of the energy industry. The industry has witnessed a falling demand and price reduction trend across the world. Various regions, including Europe, have been heavily impacted, recording all-time low electricity prices in the first quarter of FY’2020. Moreover, due to the severity of this virus, industries must focus on essential work only. This has resulted in a pause on electric component installations. Manufacturers of hardware devices for solar and wind energy are facing several issues related to order completions due to the global lockdown. The supply of components such as panels and wind turbine components are also facing delays, due to which project execution has slowed down.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: US Energy Information Administration (EIA), 2019