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Worth notingMarket eventTue, Oct 271 min read
Grid bottlenecks and trade barriers could delay project revenue and weaken demand for renewable-energy equipment.
The chief of the International Renewable Energy Agency expects the world to add less clean-energy generating capacity in 2026, the first annual decline in five years, because inadequate transmission networks and trade barriers are holding back deployment.[1]
Capacity additions measure the generating capability of equipment newly put into service during a year. The forecast means less new clean-energy capacity would enter service than last year; the full-year outcome remains to be confirmed.[1]
Transmission networks carry electricity from generating sites to users. When that capacity is insufficient, projects may be unable to deliver power to the grid on schedule even with equipment in place, delaying electricity sales.[1] Trade barriers can also restrict equipment sourcing or increase purchasing costs, making some projects harder to complete on time and within budget.[1]
If those constraints reduce the capacity entering service, developers may postpone further construction and equipment purchases, passing the pressure through to clean-energy suppliers' orders.[1]
Developers exposed to transmission bottlenecks may need to revise construction and start-up schedules. Electricity revenue could arrive later, while trade barriers may make equipment harder or more costly to obtain.[1]
Equipment suppliers face the risk of deferred orders if customers delay projects because of grid or trade constraints. The sales impact depends on where projects are held back and whether customers keep their purchasing schedules.[1]