We are experiencing unprecedented times by modern standards. Most of us living today have not faced a situation like the one created by the coronavirus. Society changed almost overnight as countries around the world struggle to contain the virus and protect human lives.

While COVID-19 is a bad thing, it has created a unique situation in the energy sector. With many businesses out of commission and people staying home due to social distancing, most areas have seen a decline in energy consumption.

This sounds good from an environmentalist standpoint. Some regions are reporting less pollution as industry grinds to a halt. However, it also paves the way for renewable power to shine.

Less Energy Demand Forces a Price Change

Peak power consumption is down. Spain, Italy, and the United Kingdom have reported an average 10% drop in usage.

These shifts also affect fossil fuel-based sources. Coal is usually one of the cheapest options available. It currently stands as the most expensive around the world as cheaper green energies and natural gas prices sink.

“In most economies that have taken strong confinement measures in response to the coronavirus – and for which we have available data – electricity demand has declined by around 15%, largely as a result of factories and businesses halting operations,” Director of the International Energy Agency Dr. Fatih Birol explained in a blog post.

Renewable Energy Takes Over in the U.K.

On Sunday, March 5^th, the U.K. experienced an unusually sunny day. During that day, approximately 40% of the country’s energy was generated using wind farms with a fifth coming from solar power.

It is impressive to consider that during that time renewable energy produced more power to cover the reduced needs of the country. Octopus Energy, a green energy company, even paid some of its customers to use energy during the day. The scheme previously was only available at night during periods of low demand.

Dr. Birol views this change as an opportunity for renewables.

“In this way, the recent drop in electricity demand fast-forwarded some power systems 10 years into the future, suddenly giving them levels of wind and solar power they wouldn’t have had otherwise without another decade of investment in renewables.”

He also predicted that this increase in renewable power could help countries come up with ways to cope with drops in power that happen when the sun sets or when winds weaken.

Connect Electric believes that many of the world’s energy problems can be answered using renewable technology. While the coronavirus pandemic has wrought havoc around the world, there is hope that we can learn a few things during this difficult time.

No one can know exactly how this could change things in the coming years, but there is no denying the attention that’s been put on previously neglected green energy sources. Wind, solar, and hydropower could become more important, allowing us to phase out non-renewable and harmful fossil fuels to pave the way for a greener future.

According to an analysis by RepuTex, Australia is projected to reach 50% renewable energy by 2030 without the intervention of the federal government.

State schemes already provide significant incentives for anyone interested in sustainability. Homeowners in South Australia can receive grants of up to $6,000 for solar batteries. Those in Victoria may be eligible for rebates of up to $4,838 for new installs this year. Zero-interest loans are available for new installations in New South Wales.

These offerings have helped drive interest and encourage families and business owners to move forward with solar system installations. The prospects are even more attractive thanks to a reduction in wholesale prices, which are estimated to drop from $85 MWh to $70 in the next three years.

Energy Choices Fueled By Politics and Competition

Higher efficiency and lower cost have made solar and other renewables more competitive than traditional gas and coal-powered sources.

During the election season, the Coalition claimed that Labor’s 50% renewable target would hurt energy-intensive industries and cause a loss of jobs. After the Coalition won, Liberal senator Arthur Sinodinos urged the government to take advantage of the falling cost of renewable energy to lower greenhouse gas output and increase reliability.

Energy minister Angus Taylor announced that the government will not extend the renewable energy target this year. That puts a greater emphasis on state programs, which have become a significant driving factor in renewable trends.

A lack of target hasn’t stopped the government investment in renewables. The Coalition attempted to bolster its climate credentials by injecting $2 billion into the emissions reduction fund, which pays farmers and businesses to cut their carbon dioxide pollution output.

Scott Morrison also went to Tasmania to support the Battery of the Nation project. The plan intends to tap into renewable energy in Tasmania through wind and hydro system expansion. The state will benefit economically with more jobs and lower energy prices.

Renewable Energy Growth Continues Across Australia

RepuTex predicts that current policies will help create 13GW of new renewable capacity by 2030. Another 6GW is already committed for development by the end of 2020.

Head researcher Bret Harper explained that the end of this year “should begin to reduce the role of marginal gas-fired generation in the market, leading to lower wholesale prices.”

He also stated that without direct emission constraint, the “competitive pressure of new low-cost supply is modelled to significantly limit demand for coal-fired energy.”

One concern is that a lack of a plan for the exit of fossil fuels could create a boom-bust investment cycle. That means wholesale prices could rise and fall, creating a volatile market rather than one that transitions in an orderly fashion.

Join the renewable movement in Australia by contacting Connect Electric. We can help you learn more about how solar energy can help you cut costs and power your home or business. Let us know what you need, and we’ll guide you to the best sustainable solution.