Energy attorney J. Anthony Girolami is quoted in E&E News’ Energywire in an article titled “Coronavirus spurs ‘domino effect’ of wind, solar delays,” published March 10, 2020. The article discusses the negative effect of the worldwide outbreak of novel coronavirus on the utility-scale wind and solar industries in the U.S.
Girolami said that COVID-19 might cause uncertainties in the supply chain that could be especially impactful in the wind industry, as project delays may prevent developers from taking advantage of the Production Tax Credit, which though reauthorized by Congress in December was only extended through 2020.
Girolami notes also that his clients have started receiving “force majeur” notices from Asian wind turbine component suppliers. The notices provide the suppliers with temporary relief from having to fulfill their obligations in case of an extreme event, like war or a global pandemic, but the suppliers have not been giving Girolami’s clients a timeline as to the delay in their deliveries.
“Particularly in wind, there are no credible alternatives for obtaining turbine deliveries because all the major manufacturers of turbines are so saturated. You can’t cancel one order to take on another because the supply chains just won’t allow it,” Girolami said.