Covid-19 to prompt battery manufacturing capacity decline in China
The battery manufacturing industry in China is estimated to witness a shortfall in 25GWh to 30 GWh in capacity in 2020 due to Covid-19-induced market challenges. Critical battery components are manufactured in China, either by domestic or international manufacturers.
Covid-19 to slow PPA negotiations in the short term
Due to the ongoing pandemic, governments have imposed drastic measures to curb the spread of the virus, which has required temporary closures of offices and manufacturing plants, resulting in a decline in power consumption and electricity prices. This, in turn, would impact existing and upcoming power purchase agreements (PPAs) with the likelihood of derailing the construction of upcoming renewable projects.