US renewable energy developers facing delays amid the pandemic have been given longer to meet safe harbour requirements and qualify for sunsetting federal tax credits.
The American Council on Renewable Energy (Acore) welcomed the Treasury Department and Internal Revenue Service’s measures and said they should help the renewable sector deal with delays, disruptions and other challenges associated with Covid-19.
Transition 'at risk'
Global energy spending could fall by as much as 20% or nearly $400 billion in 2020 as the pandemic brings the global economy to a standstill, weakens companies’ balance sheets, and makes demand outlooks more uncertain, according to the International Energy Agency (IEA).
Wind power investments may fall by only 2% in the IEA’s projections, but the agency warned that reduced spending on renewables and grid networks may harm the energy transition.
Swedish developer Vattenfall resumed construction work at its 353MW Blakliden Fäbodberget wind farm in northern Sweden with several social distancing measures in place.
Vattenfall has banned visitors from the site, increased cleaning regimes and is carrying out meetings and training sessions by videolink.
Rystad Energy suggested the coronavirus pandemic might prompt oil and gas majors to increase capital spending on renewables.
“The pandemic is creating a number of distressed sellers and reducing acquisition costs for assets and companies, thereby creating opportunities for Big Oil to accelerate its energy transition through acquisitions," said Rustad’s product manager for renewables, Gero Farruggio.
For updates on how the coronavirus pandemic is impacting the wind power industry, please follow WIndpower Monthly’s blog.