The impact of Covid-19 Pandemic on electricity markets
The Covid-19 Pandemic has brought the global economy to a halt everywhere across the planet, most governments have enforced lockdown and social distancing throughout particular states or provinces and also in some cases, nationwide.
Demand for electricity during Covid-19 Pandemic
The restriction on economic activity has resulted in decreased demands for oil and gas as well as electricity. The demand for electricity has fallen by around 5-10%, this year from the previous year at this same time. Covid-19 pandemic has also impacted the supply of electricity and has also resulted in a large reduction in greenhouse gas and air pollution.
Electricity prices have also fallen due to self-quarantine and social distancing resulting in reduced economic activities. The prices of other energy commodities like Oil, LNG, and coal have also fallen due to reduced demand leading to lower electricity prices as well.
Effects on electricity production during Covid-19 Pandemic
The impact of the coronavirus crisis on electricity production and operational activities has been far-reaching, to say the least, with many power projects being placed on hold or being canceled due to uncertainty.
The overall situation has led to a fall in utility revenues in many countries and many have already started to send their workers to home due to the economic downturn caused by the Covid-19 pandemic.
This crisis is reshaping our electricity markets as we try to diversify our energy supplies and prioritize system reliability and resilience through better coordination.