April 13 (Renewables Now) - Wood Mackenzie has cut its 2020 global solar installations forecast by 18%, or more than 23 GW, to 106.4 GW to reflect the impact of the COVID-19 pandemic.
Construction and development activities are slowing down, tenders are being postponed, there is a drop in power purchase agreement (PPA) announcements, and the access to financing for earlier-stage projects is now limited.
According to WoodMac, the coronavirus impact will also be felt in 2021. “Although we expect a strong economic recovery next year, projects that should be delivered in 2021 are being developed and financed today. When the recession hits, not all activity will go ahead as planned,” said senior analyst Tom Heggarty.
The market research company now expects 2021 solar capacity additions to be of around 123.6 GW, down from a previous guidance for 127.2 GW. Heggarty noted that the availability of photovoltaic (PV) modules and inverters is not expected to be an issue.
WoodMac recently also reduced its forecast for global energy storage capacity deployments this year by 19%, or roughly 3 GWh, due to the measures to limit the spread of the novel coronavirus.