BAKU, Azerbaijan, May 7
By Leman Zeynalova – Trend:
There will be record annual capacity installations for wind and solar energy in 2020, Trend reports citing Wood Mackenzie.
“After early supply chain disruptions, the environment for solar, energy storage and electric vehicles is stabilizing. However, wind is deeply affected with the most disparate supply chain and concentration of resources in hard-hit markets. Despite this, we will see record annual capacity installations for wind, solar and storage in 2020, showing the resilience of the renewables sector that continues to flourish in many markets,” Wood Mackenzie said in its report.
Electric vehicles though are set for a more than 40 percent drop in annual sales, according to the company.
“Not yet competitive, the fall in consumer spending as well as low oil prices and delayed new models will mean a large fall in key markets China and the US,” reads the report.
WTI turned negative for the first time since WTI futures started trading as Cushing stocks climb at record rates towards tank tops. The L48 shut-in volumes are already over 0.5 million b/d. “US commercial crude oil storage is expected to reach near capacity in June, Cushing by the first half of May.”
Global travel has collapsed with cross-border movement severely restricted.
Consumption of jet fuel has halved in two months with the drop off in commercial passenger airline travel. Global maritime traffic continues its counter-seasonal decline, driven by slowing trade and a rapidly contracting cruise ship industry. However, a partial recovery is on the horizon as China manufacturing activity and mobility return.
Wood Mackenzie expects restrictions to remain in place into the fourth quarter of 2020 in many countries, particularly in Asia and Europe – possibly even extending into 2021.
“As a consequence, we have downgraded our economic outlook to a severe recession; we’re forecasting a 4 percent contraction in the global economy in 2020. Economies under tight lockdowns, France, Italy and Spain, posted large contractions in output in Q1. US GDP also fell in Q1, but we are expecting far worse for Q2. With rocketing unemployment, incomes will be hit hard and the risk of defaults in highly indebted households increases.”
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