Covid-19 Executive Briefing

Understanding the economic impact of the Covid-19 pandemic and the implications for the power sector

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- ECONOMIC IMPACT -

Latest update: 4 May

Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.

Concern over the spread of Covid-19 has increased, but so has business optimism.

-3%

Consensus global GDP growth for 2020 according to current forecasts

6.7%

The International Labor Organization's expected dip in worldwide working hours in Q2 2020

Impact of Covid-19 on asset prices

- SECTOR IMPACT: Power -

Latest update: 4 May 

GlobalData analyst view:

"Lower demand, decline in prices and supply chain issues are troubling the sector."

In March, US clean energy sector job losses are estimated at 106k.

The IEA expects global renewable generation to grow by nearly 5% in 2020, despite supply chain and construction delays.

In 14 European countries a temporary moratorium has been
announced on energy bills.

impact on supply chain and demand

In a recent GlobalData poll, 43% of respondents said they believe that Covid-19 will highly impact project delays, while another 35% believe that there will be a moderate impact.

State-run auctions in Europe have been altered and implementation deadlines have been extended to help both authorities and bidders.

In the US, about 4.9GW, or 39%, of new utility-scale capacity is expected to be either canceled or indefinitely postponed from April through September.

The impact of Covid-19 on the Indian wind gearbox supply chain is expected not only on the home market, but also on the US market.

Production at some wind turbine assemblies and component production facilities, for example in Spain, Italy, the UK and India, have been suspended to stem the spread of coronavirus.

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