Renewable energy resources and COVID-19
The breakout of COVID-19 and its culminating transformation into a global pandemic sent shockwaves across the nations. Not only people lost their lives to it, but also numerous industries and governments as a whole succumbed to its impacts. The increase in renewable power during the pandemic is not purely circumstantial.
During the pandemic, governments introduced full-lockdown measures that depressed electricity demand at historical levels in many countries and generated an oversupply of available power capacity. As the crisis hit, grid operators, sought the cheapest and cleanest supply source to balance the lower demand. Therefore, weaker electricity demand increased the share of renewables in the system while sending the more polluting and costly carbon fuels to the back of the queue. This effect happened even at a time of historically low fossil fuel prices. International Renewable Energy Agency suggests that renewable energy solutions will provide a fast response to the pandemic and will build more resilient energy systems.
These are three key factors behind the increase in renewable energy during this crisis:
1. Renewables have been supported by favourable policies. In many countries, renewables receive priority through market regulation. The priority for the first batch of energy to the network is given to the less expensive source, favouring cheaper and cleaner sources.
2. Continuous innovation. Renewable energy has become the cheapest source of energy.
3. Preferred investment. Renewable energy has become investors' preferred choice for new power plants.
