Energy Industry
The coronavirus pandemic has created a major shift in the world, particularly in the power energy sector that has been seeing a significant decrease in demand.
Because of the imposed lockdowns and social distancing protocols, this demand for energy has been slow and its lowest all throughout the world up until to date.
And while this entails a decrease in the use of traditional sources, this equates to an increase in the investment of renewables.
Renewable energy has been proven to be more cost-efficient in providing power generation, transmission and distribution now more than ever, especially since most businesses are running on low demand.
In fact, business owners are beginning to shift to solar, hydroelectric power, and wind, mainly for their lower cost compared to fossil fuels.
In addition to this, renewable energy sources are becoming more attractive to the market as the battery technology and capacity improves over time.
Apart from electricity demand, the oil demand has also significantly changed during the pandemic.
This is all due to the stopping of public transportation and obliging people to stay at home.
However, unlike the demand for energy, there is still a mixed use of oil brought about by COVID-19.
Although employees are working from home and not driving to work, once they do return, there will be more private cars on the road than public transportation.
Air travel is also a factor in the decrease of oil usage as flights are not likely to return to normal until 2021.
While all this demand will presumably revert to normal, there is no denying that the usage of renewable energy sources is greater now more than ever.
This comes as the result of more people realizing how uneconomical coal is.
Many are starting to invest in renewables, and the use of fossil fuels in power generation and energy consumption seems to decline rather quickly nowadays.
These changes are nothing but a positive development towards fighting climate change.
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