Page 1 of 7
Archives of Business Research – Vol. 10, No. 12
Publication Date: December 25, 2022
DOI:10.14738/abr.1012.13575. Pena-Sanchez, R. (2022). Renewable Energy Consumption During Covid-19 Pandemic. Archives of Business Research, 10(12). 60-
66.
Services for Science and Education – United Kingdom
Renewable Energy Consumption During Covid-19 Pandemic
Rolando Pena-Sanchez
Texas A&M International University, USA
ABSTRACT
Currently, the pandemic derived from the outbreak of the Covid-19 virus represents
one of the most complicated situations for the world economy because it is a health
emergency, which has created remarkable affectations in all types of industries,
such as the electrical industry. A brief information about the distribution,
commercialization, and diversity in power generation sources is included. This
report analyzes the annual average change in percent renewable energy
consumption from 2019 to 2020 for the representative group of selected countries:
China, France, Germany, Italy, Japan, Portugal, Spain, United Arab Emirates, United
Kingdom, and United State; where the parametric (paired t-Test), and the non- parametric technique (related-samples Wilcoxon signed rank test) produced the
same result: the average annual change in the percentage consumption of
renewable energy from 2019 to 2020 has been significant (p-value< 0.01) for the
group of selected countries. We conclude this report by proposing the
implementation of a new paradigm: The transformation of an energy dependent on
oil into one dependent on renewable sources, such as solar radiation and wind
mainly.
Key Words: Renewable energy consumption, Covid-19, G7 countries group, paired t-Test,
related-samples Wilcoxon signed rank test
INTRODUCTION
Electricity is created in plants capable of obtaining electrical energy from a) primary energies
called renewable energies, such as wind, solar radiation, and tides, and b) non-renewable
energies such as coal, natural gas, nuclear radiation, and oil (Poston et al, 2019). Companies
build power generation centers and own so-called power plants. These companies sell the
energy generated to trading companies.
Once the energy is obtained and after being converted into electricity, it is transmitted by
elevated and/or underground routes, from the power plants to the substations, where there
are other mechanisms called transformers, whose mission is to guarantee adequate electrical
voltage. Substations are necessary to control electricity and maintain the ideal voltage.
Electricity is sent to the homes in the nearest area from the substations. As a recipient of energy
and a consumer, you can choose which is your distribution company, since depending on the
area in which you live, one or the other will touch you. The company that touches you will be
responsible for the electricity reaching your home correctly and will take care of solving the
breakdowns. It is also the owner of your light meter, and it sends its readings to your trading
company, which is the one that gives you the corresponding balance.
Page 2 of 7
61
Pena-Sanchez, R. (2022). Renewable Energy Consumption During Covid-19 Pandemic. Archives of Business Research, 10(12). 60-66.
URL: http://dx.doi.org/10.14738/abr.1012.13575
The trading company is the one that you can always choose, and it will always be the one that
sends you the invoices, since it is the one that buys the energy from the generation companies
and sells it to you. The marketers will make various rates and offers available to you, although
there are countries with a free market where you pay according to the conditions of your
contract, as in any other service rate (mobile, Wi-Fi, etc.) and a regulated market (you pay what
you are established by a system designed by the Government).
Conventional cycle thermoelectric plants (coal, diesel and natural gas): these plants burn coal,
natural gas or diesel. When burned, they raise the temperature of a water tank, transforming it
into steam, which makes a turbine move. It is this movement, that of the turbine, which
generates electricity through an alternator that transforms mechanical energy into electricity.
That is, the movement is transformed into electricity. Finally, the steam goes to a condenser to
turn back into water and start the cycle all over again.
Combined cycle thermoelectric plants (coal, diesel, and natural gas): They work in a similar way
to those of the conventional cycle. Like these, they have a turbine that moves with the steam
from the heated water. But they also have a different turbine that moves with air collected from
the atmosphere and heated by fossil fuels. Its great advantages over those of the conventional
cycle are that they are more efficient, more flexible, they can work at full load or partial load,
depending on the needs, and they turn out to be more ecological, due to fewer emissions into
the atmosphere.
Nuclear power plants: in the same way as in the previous ones, the heat released by nuclear
fission in a nuclear reactor heats large amounts of water at high pressure. The released steam
produces electricity by passing through a turbine connected to a generator. The fundamental
difference, apart from their high power, is the fuel they use, usually uranium.
Geothermal power plants: the system is like the previous ones; the hot water emits steam that
moves a turbine; but in this case the natural heat from the interior of the earth is used through
pipes in the subsoil.
Biomass power plants: in this case, the heat is generated after burning organic matter, whether
vegetable or all kinds of waste, whether animal, industrial, agricultural, and urban.
Hydroelectric power plants: they do not need heat, since these types of power plants are the
evolution of the old mills. What they do is use a significant waterfall to move a hydraulic turbine.
They are usually built-in dams and reservoirs.
Wind farms: in the same way, the movement generates electrical energy, which in this case is
created by the wind. This moves a turbine from which electrical energy will be obtained.
Solar power plants: there are two types. Solar thermal what they do is use the heat of the sun
to heat water and use the steam generated to move a turbine. Photovoltaics what they do is
directly transform solar energy into electricity, thanks to photovoltaic cells.
Tidal power stations: the movements of water produced by the rises and falls of the tides
activate a turbine that, through a generator, will produce electricity.
Page 3 of 7
62
Archives of Business Research (ABR) Vol. 10, Issue 12, December-2022
Services for Science and Education – United Kingdom
Wave power plants: like the above but using waves instead of tides
OBJECTIVE
For the sample of selected countries (China, France, Germany, Italy, Japan, Portugal, Spain,
United Arab Emirates, United Kingdom, and United States): Although the data indicates an
increase in the percentage of renewable energy consumed in 2020 with respect to the 2019
(Figure 1), our objective is to estimate whether this increase was significant across mentioned
countries, assuming that such countries were exposed to the same negative effects of Covid-19
(Deloitte, 2020).
RESEARCH HYPOTHESES
From the mentioned objective, we would deduct the research hypothesis:
H1:
country i = m2020 country i
- m2019 country i
>
; for i=1,2, ...,10
Thus, the corresponding null hypothesis takes the following notation:
H0:
country i = m2020 country i
- m2019 country i
≤
; for i=1,2, ...,10
Where
country (delta) represents the average percentage difference of renewable energy
consumed by the mentioned countries from 2019 to 2020.
Figure 1. Average Renewable Energy Consumption % by Country 2019-2020
DATA, METHODOLOGY AND RESULTS
Since the main motivation to prepare this article has been the global demand for renewable
energy generation. This research essay is supported by secondary type data from an official
source coordinated by the World Bank Group; 1818 H Street, N.W. Washington, DC 20433, USA;