Nordic countries include Norway, Denmark, Sweden, Finland, and Iceland has a significant share in oil and gas and renewable energy industry. In 2018, Sweden has a significant share of 54.6% in the EU renewable energy sector. The country has a rich supply of biomass and moving water, which support its high share in the EU renewable energy. In Sweden, bioenergy and hydropower (water) are the major sources of renewable energy. Hydropower is mostly used for the production of electricity and bioenergy for heating. In 2015, the Sweden government pledged to go free from fossil fuel by 2050. The COVID-19 epidemic has a significant impact on the European renewable energy sector due to the supply chain disruptions, which can affect the ongoing solar and wind projects in Sweden.
As per the SolarPower Europe, in the solar sector, European solar energy sector is expected to see a short-term delay in projects coupled with the supply of materials, as well as a slowdown in demand due to the lockdown in Europe. In the medium- to long-term, the sector may be recovered quickly, primarily if national energy and climate ambitions are continued. On 9th April 2020, to support the European renewable energy sector in the light of coronavirus epidemic, a post-COVID-19 stimulus signed by the environment ministers from Sweden, Latvia, Austria, Italy, Denmark, Luxembourg, Spain, the Netherlands, and Portugal. This may support to make stable the renewable energy sector in Europe. The OMR report titled “Economic Impact of COVID-19 on Nordic Countries” has provided the pre and post COVID-19 revenues along with industry verticals and country-wise analysis. Multiple authentic sources are used to properly estimate the effect of the outbreak on the Nordic countries and values are derived accordingly.
Lowering investment in oil and gas exploration activity
Norway is among the major country involved in oil and gas exploration in the EU. However, due to the COVID-19 outbreak, the companies have reduced their investment for oil and gas production activities. For instance, on 25th March 2020, Equinor ASA, the major oil and gas company in Norway, presented an updated view for 2020 which includes nearly $3 billion action plan to reinforce the financial strength of the company due to the COVID-19 epidemic and low prices of the commodity. The prime aspects of the action plan for 2020 include lowering exploration activity from nearly $1.4 billion to nearly $1 billion, reduction in operating costs by nearly $700 million compared to original estimates. Reduction of organic capex from $10-11 billion to nearly $8.5 billion, a decline of nearly 20%. The decline in the investment of oil and gas production activity will eventually lead to a reduction in the output.
OMR Global Recently Published Report on: https://www.omrglobal.com/industry-reports/economic-impact-of-covid-19-on-nordic-countries
The Report Covers
- Comprehensive research methodology of the pre and post- Economic Impact of COVID-19 on Nordic Countries.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies Impact the Nordic Countries.
- Insights about market determinants that are stimulating the Nordic economy.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Segmentation
By Type
- Portable
- Intensive Care
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