The COVID-19 pandemic has impacted power projects by causing delays in project development. Verdict has conducted a poll to assess the pandemic’s impact on the development of power projects.
Analysis of the results shows that the outbreak has a high impact on project delays in the power sector.
A majority of 42% the respondents opined that the impact is high, while 35% believed the impact is moderate, followed by 16% who believed that the impact is low. A minority 7% voted that it will have no impact at all.
The analysis is based on 391 responses received between 26 March and 21 April.
Power projects face delays due to COVID-19
Projects being developed in the power sector have faced delays due to the lockdown and movement restrictions imposed to control the spread of COVID-19 disease. In Australia, for example, financial closure of up to 3GW of renewable energy projects have been either cancelled or postponed.
India may also face similar delays with 21% or 3GW of wind and solar projects being delayed due to postponement of construction and supply and labour disruptions. Further, out of the 62GW of coal-fired projects under development, 30% are expected to be delayed as they were based on Chinese power generation equipment.
Indonesia is another country facing delays in the development of hydropower projects due to the coronavirus outbreak. Planning and development of hydropower dam projects in Mekong River and the Luang Prabang dam have been postponed. Myanmar is also facing delays in the development of hydropower projects.
Wind projects in the US are expected to face delays due to lockdowns and supply chain disruptions. The tax subsidies provided to these projects is expected to be endangered due to the delays.
Spain, Hawaii, and the UK are some of the other countries where renewable energy projects are expected to face delays due to COVID-19.