Supply Chain Disruptions and Their Impact on Energy Sector During COVID-19

The impact of COVID-19 on the lives of people and businesses across the globe was devastating. While governments across the world had undertaken a slew of measures to control the spread of the COVID-19 virus within their geography, many of these measures had long and unintended consequences. The restrictions imposed by the governments on the movement of people and goods across the world brought supply chains to a grinding halt. This study identifies the cascading effects of supply chain disruptions (SCDs) on the energy sector and thereby on the security of supply of energy from a European Union perspective. Since these systems are closely integrated and the impact of COVID-19 needs to be analysed at a much broader level, this study uses a systems-thinking approach to study the effect of SCDs on energy services. The study develops a causal loop model to gain further insight into how SCDs caused by COVID-19 affected the coping capabilities of society and how critical services were affected. Furthermore, the study puts forth certain policy recommendations for both businesses and governments to prepare for and protect against a similar situation in the future.