Coronavirus and global recession: impacts on European power & renewables

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19 May 2020

Coronavirus and global recession: impacts on European power & renewables

Report summary

COVID-19 and the emerging global recession are impacting European power and renewables markets. In this presentation, delivered by our analysts during the webinar on 6 May, we consider how unfolding events are affecting markets, technologies, and prices. National lockdowns have driven substantial cuts in power demand, increasing pressures on market balance and netload – against this backdrop, episodes of low and negative prices are becoming more frequent and widespread. The impact of lockdowns on power demand in 2020 is severe with our emerging outlook pointing towards year-on-year losses of up to 15% in Southern European markets. It is increasingly apparent that Covid-19 will drive climate policy action linked to the economic rebuild. Governments, trade associations, and companies throughout the region have floated green new deal initiatives as a means to jumpstart economic recovery.

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