Impact of COVID-19 on the Global Substation Batteries Market
The outbreak of the pandemic, COVID-19, has impacted the global economy and disrupted the operations of various industries across the globe, including the power industry. According to Independent Commodity Intelligence Services, nuclear power availability in the EU is expected to remain consistent as several countries, including the UK and Germany, have put in place safety measures to guarantee the continuation of operations. This would be helpful for the induction motors in the EU to generate power and distribute in the facilities such as isolated houses, farmyards, or pumping stations. However, the lockdown orders announced by regional governments have impacted the financial health of power distribution companies. India's daily power demand has reduced by 25 to 28% since the beginning of the nationwide lockdown, driven primarily by the closures of factories and offices in the commercial and industrial sectors. Distribution companies would have to incur higher aggregate technical & commercial (AT&C) losses than the levels specified by the regulators, as the T&D losses incurred are higher than what was earlier predicted.
FIGURE: US ELECTRICITY GENERATION, 2015–2019 (TWh)
As per the US Energy Storage Association, globally, approximately 40% of the market players manufacturing batteries are expected to reduce their workforce due to the impact of the pandemic, while almost 50% are anticipating reduced revenues. In the US, the power industry is likely to suffer from this reducing workforce as the delays in the energy storage projects will lead to disruptions in the grid reliability and resiliency efforts. However, utilities are trying to incorporate the energy storage systems as power backup to prevent power cuts for healthcare facilities and other critical sectors. The energy storage projects are likely to move forward in the country, but project leaders are expected to suffer shipping delays and supply line disruptions. All these factors are likely to affect the battery energy storage market in the next few months as the production of batteries has been heavily affected by the outbreak. This will eventually boost the market for substation batteries, which are an integral part of energy storage systems within the power distribution network.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Sources: Secondary Sources