Impact of COVID-19 on the Mechanical Energy Storage Market
Mechanical energy storage systems store various forms of energy. There are various types of energy storage systems such as flywheels, compressed air energy storage (CAES), and pumped hydropower. A flywheel is a device that converts rotational energy to electrical energy, the compressed air energy storage (CAES) makes use of compressed air to create energy reserves, and pumped hydropower creates energy reserves by using gravity and manipulating water elevation. There is an increased demand for mechanical energy storage owing to its relatively low cost of installation as compared to other types of energy storage methods. Also, rising concerns regarding the environmental impact of using fossil fuels are also driving the growth of the mechanical energy storage market. The spread of COVID-19 has not only caused the loss of human lives but has also triggered a global economic recession. The partial or complete lockdowns in various countries have indirectly or directly impacted several industries, causing disruptions in vendor operations, supply chains, and product commercialization, among other activities.
Figure: Value of investments in renewable energy in the U.S., 2004 to 2018, (USD billion)
Due to the outbreak of COVID-19, both the demand and the supply for mechanical energy storage have been impacted. The fluctuating supply and prices of raw materials have also affected the growth of the mechanical energy storage market. For instance, in March 2020, the World Health Organization (WHO) declared the Covid-19 outbreak as a global pandemic, resulting in several countries imposing lockdowns. There is a high probability that the COVID-19 outbreak will have a long-term effect on consumers’ lifestyles and behavior. The outbreak of COVID-19 has caused a temporary closure of manufacturing plants. China is the largest supplier of raw materials used in the manufacturing sector. However, the high cost of machinery is a factor that is hampering the growth of the mechanical energy storage market. The market in the Asia-Pacific region is expected to recover in the post-lockdown period, with countries such as Japan, China, India, and South Korea witnessing lucrative opportunities to recover from the losses sustained during the COVID-19 pandemic.
Source: UN Environment
Source: Primary Experts, Secondary Sources, and MRFR Analysis