Lower-cost oil and gas, as well as solar module supply chain irregularities caused by the coronovarirus spread in China, the world’s dominant supplier of solar energy systems, have emerged as obstacles for RES sector growth and investments.
Numerous solar energy projects around the world are being delayed or postponed as a result of the solar module supply problems in China.
The recent plunge of oil and gas prices, prompted by the impact of the coronavirus spread on economies and a simultaneous oil-price war between Russia and Saudi Arabia, has suddenly made RES investments less competitive against conventional technologies in terms of electricity generation, energy efficiency or electrification of sectors such as transportation or shipping.
The duration of lower oil prices remains unknown.
Natural gas prices have fallen as a result of idle LNG shipments in China and forecasts for weaker demand worldwide.
Under the current conditions, market forces will turn against green energy technologies, which had just begun establishing themselves as competitive options against conventional technologies.
Questions are also being raised about the growth prospects of the electric vehicle market, still at an embryonic stage.