ID: MRFR/E&P/5750-HCR | October 2022 | Region: Global | 185 pages
Impact of COVID-19 on the Global Hydrogen Energy Storage Market
As the world is dealing with unexpected health and humanitarian crisis, the economic shock has had a huge impact on the renewable energy sector. Renewable technologies such as solar PV, wind turbine farms, and energy storage systems have experienced high growth in the past two decades, which has helped in eliminating greenhouse gases. However, the crisis caused by COVID-19 has considerably disrupted their momentum. Factors such as supply chain disruptions, delays in completing renewable energy projects, and the risk of being unable to benefit from government incentives are likely to decrease investment and growth of renewable technologies. Moreover, in October 2019, IEA forecasted that 2020 would be a record year for attractive investments leading to renewable energy storage and generation. However, investments have been considerably reduced due to COVID-19, and major incentives are set to expire by the end of 2020. Moreover, in Europe, 2020 was expected to be a milestone year for member states to reach renewable energy targets.
FIGURE: ENERGY STORAGE TECHNOLOGIES, MAXIMUM POWER RATING, 2019 (MW)
Considering the development of energy storage systems, it is still at an early stage of rapid development. Thus, the COVID-19 situation should have a limited impact on the overall market for energy storage systems. However, the energy storage market is expecting a decline in revenues due to reduced employment. According to the estimates by energy researchers, global solar and energy storage installations are expected to drop by around 20% compared to pre-COVID-19 projections. However, many governments across the globe have planned stimulus packages to reflate the economy and encourage investments in green energy. Moreover, renewable energy is the cheapest source of new power generation for around two-thirds of the world population. Thus, it is wise to plan investments in renewable and other low carbon technologies to build back the economy after COVID-19. As per an analysis by Harvard, around 4.2 million deaths every year are linked somewhere to air pollution. People living in contaminated and polluted cities are more likely to get affected in this pandemic. Thus, it is important to protect communities from climate change and encourage renewable energy as a source of power generation.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Environmental and Energy Study Institute