While the novel coronavirus pandemic stalled the expansion of the renewables sector in the U.S. and abroad, the industry is ready to ramp up as nations reopen.
“The largest effect from the pandemic we have seen [on the renewables’ industry] is the slowing of construction activity,” according to Erin Decker, director, cleantech client management for Schneider Electric. “It takes a long time for products to get built. There is slowing there, as well as slowing within the infrastructure and supply chain in the U.S. and Europe. There also is uncertainty in the capital markets, and some are slowing to look at new renewables in the U.S.”
Crises aside, renewables are poised for even more growth
Despite the economic slowdown of the past few months affecting construction, the U.S. Energy Information Administration (EIA) has forecasted that renewables will account for the largest portion of new electricity generating capacity this year. The EIA says it anticipates the power generation sector will more than 20 gigawatts of new wind power capacity and close to 13 gigawatts of utility-scale solar capacity in 2020 – in sum, the renewables sector will be the most rapidly growing source of power generation in 2020.
In a boost to the U.S. renewables industry, a recent IRS ruling allows solar and wind power companies with projects in the pipeline another year to get them online, due to the pandemic, and still receive the Federal Production Tax Credit. “Every business has had to adjust for safety, as the world emerges, and that goes for renewable energy as well,” added Decker.
Not to mention that goals for clean energy remain in place and banks and investors view renewable energy as a solid investment, according to Renewable Energy World.
Wind and solar power continue to be the dominant renewable energy in the U.S., and more companies are eager to finance projects through renewable energy certificates and power purchase agreements. “Some have invested directly,” Decker said. “There have been massive amounts invested by corporations already.”
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