The Energy Transition after COVID-19

The document examines how the COVID-19 pandemic has affected energy demand, security, and utility finances in emerging economies, arguing that the recovery phase presents an opportunity for a 'green recovery'. Using case studies from Indonesia, Kenya, Thailand, Mexico, and South Africa, it identifies common challenges such as household energy insecurity and financial stress for state-owned utilities. The authors urge governments to integrate green recovery into their NDC planning, commit to accelerated decarbonisation, and address systemic vulnerabilities to prevent social injustices during the energy transition.

• The COVID-19 crisis has caused substantial and diverse effects on the energy sector, including reduced energy demand, changes in how energy is used, and an increased risk of energy poverty due to lower incomes.
• Analysis of government responses in Indonesia, Kenya, Thailand, Mexico, and South Africa reveals shared challenges: households facing energy security issues (partially addressed by limited free or discounted electricity), businesses struggling with cashflow and inflexible energy costs, and state-owned utilities requiring capital injections to manage balance sheet stress.
• A case study of Indonesia's power sector demonstrates that the pandemic has intensified existing vulnerabilities and injustices within the energy system, making the resolution of these 'pre-existing conditions' more urgent for a green recovery.
• To strengthen updated NDC pledges, governments should make green recovery a central energy sector tenet, commit to accelerated full decarbonisation by realigning national targets, and address existing system weaknesses to avoid future social injustices and transition roadblocks.

APA

NewClimate Institute (2021). The Energy Transition after COVID-19. http://www.newclimate.org/resources/publications/the-energy-transition-after-covid-19

Chicago

NewClimate Institute. The Energy Transition after COVID-19. 2021. http://www.newclimate.org/resources/publications/the-energy-transition-after-covid-19.

Wikipedia

{{cite report |author=NewClimate Institute |title=The Energy Transition after COVID-19 |date=24 February 2021 |url=http://www.newclimate.org/resources/publications/the-energy-transition-after-covid-19 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2021energy, author = {{NewClimate Institute}}, title = {{The Energy Transition after COVID-19}}, institution = {NewClimate Institute}, year = {2021}, month = feb, url = {http://www.newclimate.org/resources/publications/the-energy-transition-after-covid-19}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }