COVID-19: BNEF Cuts Down 2020 Global Solar Demand Forecast

BloombergNEF Slashes Global Solar Demand Forecast For 2020 To Between 108 GW To 143 GW As Coronavirus Pandemic Triggers Worldwide Economic Slowdown
05:05 AM (Beijing Time) - 13. March 2020

Having reduced its full year 2020 solar demand guidance to between 108 GW to 143 GW compared to its January 2020 guidance, BloombergNEF says 2020 could be the first down year for solar capacity additions since the 1980s.

Key Takeaways

  • BloombergNEF has offered its revised prediction for global solar demand in the wake of Coronavirus outbreak
  • It has slashed its previous guidance for solar power demand to come down globally to between 108 GW to 143 GW
  • As pressure eases on equipment and component supply from China, the experience with the COVID-19 outbreak may help strengthen local manufacturing in Asia, Europe and the US, especially for batteries

Bloomberg New Energy Finance (BloombergNEF) has revised downwards its forecast for global solar module demand for the year 2020 as coronavirus (COVID-19) outbreak starts to show its effects. It now expects the solar demand this year to range between 108 GW to 143 GW.

Previously, in January 2020, BloombergNEF expected the world to need between 121 GW to 154 GW of solar power. With the new guidance, it says 2020 could well be the ‘first down year’ for solar capacity additions since at least the 1980s.

As Chinese factories are gradually increasing utilization rates, there will be less pressure on key component and equipment supply. However, this experience of overdependence on Chinese made products builds the business case for strengthening of local manufacturing in Asia, Europe and the US, especially for batteries.

According to BloombergNEF, the new Chinese policy mechanism may push some 2020 demand to 2021 for solar.

On March 10, Chief Analyst of PV InfoLink Corrine Lin in a TaiyangNews webinar on Coronavirus’ Impact on Global Solar Market and Supply Chain brought down the market intelligence firm’s global module demand forecast for 2020 to 129.1 GW, as against the previous guidance of 134.3 GW.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani