PVTIME – The coronavirus pandemic will likely have a material impact on
utility-scale solar installations in the US this year, and perhaps even into
Wood Mackenzie Power & Renewable’s Coronavirus: US Solar PV Supply
Chain and Utility-Scale Market Risk report says, in a best-case scenario,
the market could see up to four weeks of supply delays affecting a few hundred
MWs of modules and inverters. This, combined with construction disruptions,
could translate into as much as 2 GWdc of project development delays in 2020.
Ravi Manghani, co-author of the report, said: “The worst-case scenario,
which sees every step of the supply chain and project development come to a
complete halt for several weeks, could see upwards of 5 GWdc of US
utility-scale market pushed back to the second half of this year and perhaps
The solar module supply to the US market faces four sources of risk, all
of which pose a threat to the pipeline to varying degrees:
production shutdown in South-east Asia;
- Domestic US
shipping and logistics delays;
- Module bill
of materials (BOM) shortage.
US utility solar projects face four primary sources of project development
delays from the potential closing of US ports;
- Supply delays
- Travel delays
limiting or delaying project milestones;
shutdowns due to “shelter in place” orders or onsite COVID-19 infections.
Financial risks have not been included into Wood Mackenzie’s report,
however, the COVID-19 pandemic is already having impacts on the financial
markets that will almost inevitably result in changes to the US solar project
Solar manufacturers that have geographically diverse supply chains, and downstream players that have development pipelines in very early stage (or nearing completion), are the best positioned to ride the tide, assuming COVID-19 disruptions subside by the end of the third quarter this year.
The report can be purchased from Wood Mackenzie's website for $1,990.