As much as 15% of all renewable energy projects in Europe could be delayed or canceled due to the coronavirus crisis, according to a recent warning issued by McKinsey & Company. The pandemic has also had a negative impact on the energy markets themselves, says the consultancy. Persistently lower commodity prices made conventional energy more attractive, and the expansion of renewables less popular.
As low electricity prices chip away at future profitability of PV and wind energy, incentives for investment have failed to materialize. And this, in turn, has deterred project developers from concluding new power purchase agreements. Martin Schachinger of pvXchange examines the ongoing effects of Covid-19.
