The COVID-19 Pandemic : Energy Market Disruptions and Resilience
ing and coordination between regulators , utilities , and other relevant entities . In the U . S ., the North American Emergency Reliability Corporation ( NERC ) delayed implementation of several reliability standards , to provide short-term flexibility . 22 In its spring and summer reliability assessments , NERC also noted how the high uncertainty regarding the global health crisis led to elevated reliability risks . 23
Beyond operational resilience , financial resilience of the system has thus far performed well , but may become increasingly stressed . The economic effects of pandemic shutdowns limited the ability of many consumers to pay their electric bills . Countries and U . S . states generally instituted utility shutoff moratoriums in response . In the short term , the effects of such moratoriums are generally small as a portion of overall revenue . In the longer term , the continuing nature of the pandemic and its economic effects has led to a reevaluation of moratoriums , jeopardizing electric access when people most need it ( in a crisis ). Beyond access itself , the high numbers of workplaces instituting work from home has led to a commercial-to-residential demand shift , which can increase residential consumers bills substantially . 24 The largest relative increases could fall on disadvantaged communities , somewhat exacerbating inequality . A widescale utility bill moratorium , to be made up in future rates , could ensure continued energy access , but is unlikely to be implemented . 25
Supply Chain , Construction , and Maintenance Disruptions
The most noticeable impacts of the pandemic on the electric sector have been the impact on international energy supply chains — threatening construction and deferring of maintenance activities .
With pandemic response measures curbing industrial production , global supply chains for power goods was disrupted . 26 This was especially severe for solar panels , for which China is responsible for 70 % of global production . Five of the top ten manufacturers in China fell under quarantine measures . Shipping disruptions
22 North American Electric Reliability Corporation . “ Motion to Defer Implementation of Reliability Standards and Request for Shortened Response Period and Expedited Action .” April 2020 . https :// www . nerc . com / news / Headlines % 20DL / Motion % 20to % 20Defer % 20Implementation % 20of % 20 Reliability % 20Standards . pdf
23 North American Electricity Reliability Corporation . “ 2020 Summer Reliability Assessment .” June 2020 . https :// www . nerc . com / pa / RAPA / ra / Reliability % 20Assessments % 20DL / NERC _ SRA _ 2020 . pdf
24 Joseph Daniel . “ Heatwaves and COVID Mean Higher Home Electricity Bills : What Do We Do About That ?” Union of Concerned Scientists . July 2020 . https :// blog . ucsusa . org / joseph-daniel / heat waves-covid-means-higher-electricity-bills
25 Wolfram , C . “ Can We Stop Paying Utility Bills for a Bit ?” March 30 , 2020 . https :// energyathaas . wordpress . com / 2020 / 03 / 30 / can-we-stop-paying-utility-bills-for-a-bit /
26 Evans , A ., & Bazilian , M . “ Susceptibilities of Solar Energy Supply Chains .” Global Policy , April 2020 . https :// www . globalpolicyjournal . com / blog / 16 / 04 / 2020 / susceptibilities-solar-energy-supplychains
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