Energy and Water in the Time of COVID-19

Abstract

The paper examines the impacts of the coronavirus pandemic and the resulting government actions on the energy and water sectors, in particular on energy demand and water usage. The energy sector has been severely affected by the coronavirus pandemic resulting in a decline in global energy demand by 5-10% due to significant reductions in the demand from the commercial, services, and industrial sectors. In the Philippines, energy demand in the Luzon and Visayas grids dropped by 30% and Mindanao grid by about 9.5%. Water, sanitation, and hand hygiene are the first line of defense and are central to preventing the spread of the virus. Consequently, the service providers must ensure the availability of clean water, well-trained and healthy staff, and the protection and operation of equipment, which require continued access to financial resources. Many of the challenges faced by the energy and water sectors caused by the COVID-19 crisis will gradually resolve once the crisis comes to an end and previous levels of economic activity resume. However, energy and water companies have to develop a high degree of flexibility to adjust operations, act quickly to secure supply chains and manage component inventory, implement structural measures to reduce risk, and develop a more mobile workforce that can work virtually and at distance. But while the pandemic may have significant permanent economic effects in the energy sector, it is expected that there will be less pronounced permanent effects on the water sector.