The energy crisis has really become a huge problem. The current pandemic has created a unique crisis for every industry, especially for the energy industry. Take a look below to see how the energy crisis has been affected by this pandemic.
How the Virus Has Created an Energy Crisis
The latest virus has been a huge driver behind the current energy crisis. Following, we are going to discuss how these pandemic has affected the energy sector.
Fossil Fuel Generators Are Hit Bad
Do you know that electricity generators depend on the peak prices of fossil fuels to make a dime?
Yes, the generators that used natural gas and coal face the worst of present crises. The pandemic has decreased the demand for these fossil fuels. This affected the revenues for people with long term PPAs for renewable energy.
While this represents an issue for the energy sector, it also suggests that other industries will take advantage of lower energy bills during these hard times.
Corporations are Fighting Hard Against Climate Change
Corporates had held a strong stance for renewable energy. Yes, companies around the world have signaled that they are:
- interested in renewable energy
- willing to fight for the planet’s well-being…
…even if they are taking small steps such as these.
There are a few planned transactions but they are on pause thanks to the current pandemic. There was also a development that a company launched its RFP for an energy buyer. It’s good to see the business community has gotten serious about renewable energy.
Truth be told, as we get out of the current pandemic, the threat to our climate will remain as real as it was before. But the collective dedication from companies now is an impressive achievement, and it will accelerate the transition from fossil to renewable energy in our near future.
Low Electricity Pricing Also Affect the Market
As the pandemic affects workforces all around the world, places such as:
- stores, and
- plants remain closed.
This led to a dramatic effect on energy. Usually, the peak hours are 6 pm when people get back home and start working around the house. But these days, companies are not seeing that dramatic increase.
Keeping this in mind while looking for iSelect Electricity Comparison for Queensland. This reduced demand for energy has also led to a decrease in a drop in energy prices. We expect things will take a far worse turn for the energy sector if the current pandemic goes.
The Problem in Supply Chain and Finance Friction
The pandemic has hit every aspect of the energy sector, not energy prices. The pandemic has hurt equipment delivery and repair, labor constraints, etc. All of these problems together put major projects on a halt. This way, developers will miss some delivery milestones. This could be the reason why companies are pushing hard for tax credit extension.
The Pandemic and the Energy Crisis – In Conclusion
The energy crisis is a real threat.
The issue is, most companies don’t know how things will play out during this pandemic, let alone after it. This has created an uncertainty that even the think tanks are having a hard time clearing out. The fact is, businesses around the world are disrupted thanks to the current epidemic, which made things worse for the energy industry.
Has your business been able to stay afloat during this pandemic? How has it been affected by the recent pandemic?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.