Industry report Energy, Environment & Cleantech 2020
“The low-carbon energy transition will get traction from the coronavirus crisis“
- The coronavirus pandemic is the biggest shock the energy sector has seen since the Second World War, and it could have a devastating impact on demand especially for coal, oil and gas, according to the International Energy Agency (IEA). Energy demand could plunge 6% this year, the largest in 70 years in percentage terms and the largest ever in absolute terms, equivalent to losing the entire energy demand of India
- On Monday 20th of April 2020 for the first time in history the WTI crude price went negative closing at -$37.63/bbl. The crash was primarily caused by the collapse of demand caused by the lock-down measures implemented around the world and high levels of storage utilisation in US.
- While the economic slowdown could delay investments and projects in renewables and clean technologies, in fact lockdown measures have been driving a major shift towards low-carbon sources of electricity including wind, solar PV, hydropower and nuclear.
- Scope deals will gain momentum vs scale deals in the context of the lowcarbon energy transition in particular among oil & gas market players
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