Wood Mackenzie said this week that it expects the coronavirus pandemic to have a disproportionate impact on demand for solar PV projects and storage systems, as well as electric vehicles. As a result, the research firm has lowered its full-year forecast for new PV capacity additions by 18% from 129.5 GW to 106.4 GW in 2020.
On the brighter side, the European market for power purchase agreements has not been completely stalled by the Covid-19 pandemic, despite falling power prices and declining demand, argues Luca Pedretti, COO and co-founder of Swiss software developer Pexapark. However, a new mindset is now required for solar and wind PPAs, Pedretti says, adding that “there are thresholds of long-term PPA price levels that allow for new investments.”
However, at the global level, corporate PV funding is down 31% due to the pandemic, according to Mercom Capital Group. The research firm says that cash flows are being squeezed due to a lack of venture capital investment and a relative dearth of financing stemming from the Covid-19 crisis. Global venture capital funding in the solar sector clocked in at $145 million in the first quarter, marking a significant decrease from $350 million in the fourth quarter of 2019, it said.
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