02 Jun COVID-19: CONSIDERATIONS FOR RENEWABLE ENERGY PROJECTS
The COVID-19 global health crisis has impacted every facet of the world economy, and the energy sector is no exception. The combined effect of lockdown measures across countries, the oil glut arising from the oil war between Saudi Arabia and Russia and the delay in directing production cuts by the Organisation of Petroleum Exporting Countries (OPEC) resulted in a global sharp decline in oil demand and a slump in oil prices. In Nigeria, this resulted in significantly lower income from oil exports, economic turbulence and expected lower investments in the energy sector. The implication of this on global and local energy systems is the realization of the need for non-oil, decentralized energy systems to achieve energy access, independence and sustainability. In navigating the post-pandemic energy space, this article aims to examine salient considerations for the development of renewable energy (RE) projects in light of the financial challenges arising from the pandemic.
The COVID-19 pandemic has brought to the fore the important role RE can play in the achievement of Sustainable Development Goal 7 – Access to Affordable, Reliable and Sustainable Energy. In contrast to the volatility of the global oil market and unsustainable energy use from hydrocarbons, RE presents stable and sustainable alternative energy sources. However, there is the challenge of decline in new investment and clients. We address some considerations which might impact on RE projects in view of the present..continue reading