Emerging risks due to Covid-19 to restrict the project finance market for renewable energy development

20 May 2020 (Last Updated May 19th, 2020 16:56)

The Covid-19 pandemic is having significant implications on various sectors, including renewables. Until the outbreak, the renewables sector enjoyed rapid growth supported by technology advancements, market competition between developers and suppliers, robust supply chain, growing investor interests, and innovative business models, along with the global agenda to embrace low carbon power generation. At present, the sector is likely to face a lean period with stakeholders along the value chain, facing disruptions that threaten the sector’s growth trajectory. Renewable projects at various stages of development are exposed to the risks originating from the crisis induced by Covid-19. Projects are exposed to legal issues, logistics risks, personnel shortages, project development hurdles, and most importantly shortfalls in financing.

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