Impact of COVID-19 on the Global Overhead Power Cables Market
The novel coronavirus disease 2019 (COVID-19) pandemic caused disruptions in key economic and financial markets. Almost all industries are facing challenges associated with the economic conditions resulting from efforts to address the outbreak. The development and construction of power generation assets are also expected to take a hit. The US Energy Information Administration electricity projects that have been impacted by the pandemic is expected to lead to delays or cancellations of 4.9 GW of previously planned power generation capacity projects through September 2020. One of the key, and unexpected outcomes, of the pandemic, is the degree of loss of demand for overhead power cables from both commercial and industrial sectors due to the protracted lockdown across the US. However, the utility consumption in China, which experienced a prolonged lockdown, fell by 25% in early 2020, compared to 2019. This would certainly affect the manufacturing of overhead cable systems, as these cables are used for the transmission of electricity, laid on utility poles and towers. The pandemic is likely to have at least a short-term effect on industrial electricity loads, as large factories and industrial centers close. However, the residential electricity load has dramatically increased as millions of people are working from their homes.
FIGURE: US ELECTRICITY LOAD, FEBRUARY 2020-MARCH 2020 (GW)
As per an ICRA report, in India, the electricity demand during FY’21 is likely to decline by about 1% due to the pandemic, and the lockdown announced to curb its spread. The power distribution companies in the country are likely to record a 20,000-crore loss and be exposed to other possible downsides from any extension of the lockdown. Additionally, the under-construction renewable power projects are likely to face delays in execution because of disruptions in the supply chain in India and labor unavailability, following the lockdown. This is expected to result in payment delays from power distribution companies to power generation companies, which are already under significant payment dues. Such factors are expected to restrain the sales and adoption of overhead power lines in the electric power T&D activities.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary sources