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OPERATIONS Impact of Covid-19 on Renewable Energy Market Amitraj Sutar – PGDM Research and Business Analytics 2019-21 , Prin. L.N. Welingkar Institute of Management Development and Research, Mumbai The Covid-19 pandemic has set in motion the largest drop in global energy investment in history, with spending expected to plunge in every major sector this year – from fossil fuels to renewables and efficiency – the International Energy Agency said in a new report released today. The global renewable energy sector is suffering due to problems such as delays in the supply chain, issues in tax stock markets and risk of not being able to benefit from the government subsidies and schemes. The demand of energy also dropped due to outbreak. The unprecedented decline is staggering in both its scale and swiftness, with severe potential implications for clean energy transitions. Towards the beginning of 2020, global energy venture was on target growth of around 2%, which would have been the biggest yearly ascent in going through in six years. After the Covid-19 emergency brought huge wraps of the world economy to a stop very quickly, global investment is currently expected to fall by 20%, or nearly $400 billion, comparatively last year, as per the IEA's World Energy Investment 2020 report.
Source: World Investment Report, 2020, IEA
"The noteworthy dive in worldwide energy venture is profoundly disturbing for some, reasons," said Dr Fatih Birol, the IEA's Executive Director. "It implies lost positions and financial open doors today, just as lost energy supply that we may well need tomorrow once the economy recuperates. The lull in burning through on key clean effort innovations additionally hazards sabotaging the truly necessary change to stronger and economical energy frameworks." Global investment in oil and gas is relied upon to fall by almost 33% in 2020. The investment in shale business is expected to fall by 50% as it was under huge pressure, and investor confidence and access to capital has now slowly decreasing. Power sector spending is on course to diminish by 10% in 2020, with stressing signals for the advancement of safer and sustainable power systems. Renewables investment has been stronger during the lockdown than petroleum derivatives, yet spending on rooftop solar installations by households and organizations has been emphatically influenced and final investment decisions in the primary quarter of
