An energy overhaul revolution is at the gates, but, as with any 2020 initiative, COVID-19 will have the last word on when those gates open, because, as the International Energy Agency (IEA) points out in its World Energy Outlook 2020, the coronavirus pandemic “has caused more disruption in the energy sector than any event in recent history.”
There are two sides to that disruption: lower energy consumption and lower energy-related pollution on the one hand; lower economic activity and less energy investment revenue on the other.
Consider, for example, that IEA estimates have global energy demand dropping 5% in 2020, energy-related emissions falling by 7% and energy investment sinking by 18%. Those percentages represent huge numbers in the energy game. They also add up to what will be a short-term win for the environment from lower air pollution, but a potential long-term loss in that there will be far less revenue available to funnel into the massive investment needed to shift power grids to lower carbon-intensive energy sources.
A recently released Black & Veatch survey of 600 power utility stakeholders found that aging infrastructure remains the most challenging issue facing the electricity industry in 2020.
Reducing emissions by incorporating renewable energy sources in electricity grids has displaced an aging workforce as the industry’s second-biggest challenge, according to respondents to the global engineering firm’s survey.
Solar and wind power, according to U.S. Energy Information Administration estimates, will consequently account for three-quarters of all new power generation this year.
However, a power utility’s good low-carbon intentions often can’t compete with hard financial realities, especially in developing economies hammered by the pandemic.
So that power generation revolution at the gates will need a victory in the global pandemic fight for it to open those gates and gain the momentum needed to overcome one of the biggest challenges facing the world’s environment and economy.
