BloombergNEF (BNEF) published its outlook for the PV industry on Thursday, as the world braces for a global economic downturn due to the coronavirus outbreak. But while stocks and oil prices are already falling, the full extent of the unfolding crisis is still not clear.
BNEF reports that production of PV components is starting to resume in China. This could alleviate pressure on supplies of key components and equipment. However, there will be shortages in the short term.
The current situation in China has shown that the value chain for renewable energy needs to be regionally diversified, says BNEF. More production facilities are also needed in Asia, Europe and the United States – especially for batteries.
“We are currently more concerned about demand,” BNEF said.
The Chinese government has already pushed some PV projects that had been planned for this year into 2021. BNEF has therefore also reduced its expectations for newly installed PV capacity in 2020. It expects developers to install between 108 GW and 143 GW of new solar capacity this year. This contrasts sharply with the forecast that BNEF issued in February for annual global PV capacity additions of 121 GW to 152 GW.
BNEF’s revised forecast suggests that the global PV market could be poised for a significant contraction this year.
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Source: pv magazine