SARS-CoV-2 is wreaking global havoc with economies on the verge of collapse
The global energy industry is also badly affected by the COVID-19 pandemic
At the start of the New Year 2020, little did we expect that our plans and resolutions will be thrown to dust by the spread of a deadly virus that originated in Wuhan, China. The world is in lockdown, as countries tirelessly battle this microscopic enemy, leaving no stone unturned. The COVID-19 (Coronavirus Disease 2019) pandemic is spreading like wildfire and claiming victim after victim in its path. As of today, 4,36,785 cases have been reported and the death toll from the virus stands at 19,637. The collateral damage of the outbreak on countries and economies will be large scale and long lasting. Smart Sustain has collated some crucial details on the effect of the coronavirus pandemic on the energy industry and economy as a whole:
The Renewable Energy Industry is facing uncertainty as nodal bodies have issued no directive for the coming weeks
Tepid directives and no communication from MNRE (Ministry of New and Renewable Energy) and SECI (Solar Energy Corporation of India) about enforcing force majeure directives due to the outbreak leave renewable companies in the dark.
United States utility industry to request employees to live at offices if situation gets worse
The United States (US), in a move to ensure continued operations of power plants, in considering coaxing staff at critical centers to live at workstations until the outbreak situation is contained.
NTPC will supply uninterrupted power during the Coronavirus situation
The National Thermal Power Corporation (NTPC) has ensured that the country will receive uninterrupted power supply despite being in the midst of a crisis.
Coronavirus outbreak forces Crude Prices to Slump to all time low
Crude prices have been falling across a month, and prices of most comodities have taken a beating in the wake of government imposed lockdowns enforced to tackle corona.
Despite the COVID-19 outbreak, Indian Oil will keep crucial operations in On mode
Retail fuel company, the Indian Oil Corporation (IOC) has ensured that critical services will remain operational during the lockdown, to ensure uninterrupted supply of fuel.
Adani Electricity Initiates Digital Payment Options to Tackle Coronavirus
A leading private player in the sector, Adani Electricity has urged customers to use digital methods of payment. This is an effort by the company to assist the government imposed lockdown in the wake of the virus outbreak.
Oil Shortage Situation in deep waters as a result of the global Coronavirus Pandemic
The world is about to witness the most intense oil shortage coming this April. Crude will witness an estimated imbalance of 10 million barrels per day (bpd).
Only Important Services to operate at BHEL till March 31st amidst COVID-19 streak
India’s foremost engineering and manufacturing PSU (public sector unit), BHEL (Bharat Heavy Electricals Limited) has decided to continue operations of only its most essential services in order to help curtailment of the spread of the pandemic. This move has been tentatively put into effect till end of fiscal 2020. Other employees have been asked to work from home.
Fuel Price Rise: COVID-19 urges rise in Excise Duty on Fuels by Rs.8 per litre
The Indian government has proposed increase in excise duty on petrol and diesel in order to economically fuel it’s war against the COVID-19 outbreak. The Finance Ministry has proposed additional excise duty on fuels resulting in duty on petrol increasing to Rs.18 per litre from the erstwhile Rs.10 per litre. Excise duty on diesel will increase to Rs.12 per litre from the current rate of Rs.4 per litre.
COVID-19: DISCOMS Stop Payments to Power Producers
In the wake of this sudden outbreak, state wise electricity agencies are not recovering bills from consumers. This is forcing state DISCOMS (distribution companies) to defer payments to power producers, putting the power sector in a state of turmoil.
Solar remains strong in the midst of coronavirus lockdown
Since China closed industries during the start of the year, to combat the fast growing virus threat, every form of energy generation across the globe was affected except for solar energy. According to Forbes, solar power increased by 12% during this period, while wind, hydro and thermal saw a marked decline compared to the same period last year.
Global wind power capacity addition to be affected due to pandemic
The fast spreading coronavirus outbreak is estimated to impact the addition of wind energy capacity globally. The globabl wind energy capacity addition is projected to decrease by 4.9 GW (gigawatt). According to research firm Wood Mackenzie, the cumulative increase in wind energy capacity on a global level is estimated to be somewhere around 73 GW.
Moody’s predicts millions of job losses in the weeks to come
The coronavirus pandemic has put the world in an almost total lockdown situation, with countries enforcing travel, trade and business restrictions. This will bleed the global economy with real GDP (Gross Domestic Product) expected to decrease by 0.4% in 2020.
Add Comment