Renewable Energies: an alternative in the Coronavirus crisis
The situation caused by the coronavirus (COVID-19) has led to an unprecedented global economic and health crisis. The labor restrictions imposed by the Spanish Government have resulted in a reduction in electricity demand, which, together with the increase in the production of renewable energy, have led to a decrease in CO2 emissions in Spain, reaching in March A record low: 0.09 tons of CO2 per MW/h compared to 0.17 tons of CO2 per MW/h recorded in March 2019.
Spain 2020 March power generation scheme
(Data provided by the Red Eléctrica de España)
All this must be framed in the current context that we are living.
Loss of value of energy assets
With the confinement decreed by the State, many citizens have had to resort to telecommuting, to online stores to supply their primary needs, and the hours dedicated to leisure via online platforms have increased considerably. However, although it may appear that electricity consumption has increased, the results provided by the International Energy Agency (IEA) estimate that demand has fallen by around 15%, basically due to the suspension of electricity activities. factories and companies.
Against this background, it is calculated that the energy sector has lost about 30% of its value, to which must be added the strong depreciation suffered by fossil assets during the last 3 years, which reaches 50% of its value. To a greater or lesser extent, all companies have been affected by the crisis caused by the coronavirus and it is time to look for solutions.
Alternatives to power generation sources
The coronavirus crisis will end sooner or later and then, it will be interesting to see how each country learns from its mistakes and faces the future of energy with concrete and ambitious plans to face the challenge posed by the transition of clean energy. Precisely these clean energies will be, according to the IEA director himself, the energy sources of the future, since they can provide greater flexibility and lower costs. For example, work is already underway on wind and solar farms whose facilities can be switched off when demand falls, for example at night and, thus, make the most of the energy generated.
Renewable energies have had spectacular growth during the last two decades and have been key to reducing the emission of greenhouse gases into the atmosphere. The transition from fossil fuels to clean energy sources must continue and for this, governments must meet their climate goals.
However, the situation caused by the coronavirus has changed the plans of many countries and this crisis could reduce the impulse that was being given to renewable energies. What does the future hold? No one knows, but basically it will depend on two key aspects:
- The duration of confinement
- The measures adopted by each Government
The duration of the confinement is currently stipulated until April 25 (although with possible extensions) will not imply the return to normal overnight, you will have to be patient and follow the guidelines of the Ministry of Health.
The aspect that most affects the future of renewable energy has to do with the challenges that the government will face once this crisis is over and how it will distribute the economic packages to re-channel the economy. Within these packages, it will be necessary to evaluate what part of the budget is destined to continue investing in clean energy in a country, such as Spain, which is the sixth largest investor in this type of energy.
What are the contributions of KEYPLAN?
KEYPLAN, S.L. It was born linked to the world of renewable energies and although in recent years we have expanded the business areas, we are strongly committed to the concept of environmental sustainability, convinced that development models require serious reflection and urgent and profound change.
Despite the confinement, the commitment to our clients continues and we continue to provide service and continuity to our ongoing projects through telework. From KEYPLAN we hope that this situation is resolved as soon as possible and for this, we must all collaborate.