From The High Country News (Jonathan Thompson) [July 23, 2020]:
By February, the spread of COVID-19 was already eroding the global economy. First, global travel restrictions depressed the oil market. Then, as the virus reached pandemic proportions, it began hurting even the healthiest industries, throwing the global economy into the deepest rut since the Great Depression.
The recession has been hard on clean energy, which was thriving at the end of last year despite unhelpful, even hostile, policies from the Trump administration. Between 2009 and 2019, solar and wind generation on the U.S. electrical grid shot up by 400%, even as overall electricity consumption remained fairly flat. Renewable facility construction outpaced all other electricity sources, but the disease’s effects have since rippled through the sector, wiping out much of its previous growth.
Global supply chains for everything from solar panels to electric car components were the earliest victims, as governments shut down factories, first in China, then worldwide, to prevent transmission of the disease. Restrictions on construction further delayed utility-scalesolar and wind installations and hampered rooftop solar installations and energy efficiency projects. The setbacks are especially hard on the wind industry, because new wind farms must be up and running by the end of the year to take advantage of federal tax credits. Meanwhile, the general economic slowdown is diminishing financing for new renewable energy projects.
Clean energy, which has shed more than 600,000 jobs since the pandemic’s onset, is only one of the many economic sectors that are hurting. In just three months, COVID-19 wiped out more than twice as many jobs as were lost during the entire Great Recession of 2008. The impacts have reverberated throughout the Western U.S., from coal mines to tourist towns, and from casinos to dairy farms. Some industries, including clean energy, bounced back slightly in June, as stay-at-home orders were dropped and businesses, factories and supply chains opened back up. But a full recovery — if it happens — will largely depend on government stimulus programs and could take years.
In just three months, COVID-19 wiped out more than twice as many jobs as were lost during the entire Great Recession of 2008.
Infographic design by Luna Anna Archey; Graphics by Minus Plus; Sources: Solar Energy Industries Association, BW Research Partnership, U.S. Bureau of Labor Statistics, U.S. Energy Information Administration, Taxpayers for Common Sense, Opportunity Insights Economic Tracker, Wyoming Department of Workforce Services, New Mexico Workforce Connection, Utah Department of Workforce Services.
Jonathan Thompson is a contributing editor at High Country News. He is the author of River of Lost Souls: The Science, Politics and Greed Behind the Gold King Mine Disaster. Email him at firstname.lastname@example.org.