RENEWABLE ENERGY SUPPLY CHAINS UNDER PRESSURE

Renewable energy is crucial to the global move to net zero but supply chain issues around clean energy are placing serious obstacles in the road

WRITTEN BY: SEAN ASHCROFT

Renewable energy is a key plank of decarbonisation, and the move to the net zero goals laid out by world leaders during the Cop26 conference.

With supply chains accounting for up to 80% of an organisation’s carbon footprint, the shift away from fossil fuels towards renewable energies, such as solar, wind and green hydrogen, will be pivotal.

Such a global undertaking was always going to encounter significant challenges, and it seems one of these is the supply chain itself of the renewable energy projects needed to drive our net zero ambitions.

A recent WTW report shows how the adoption of more renewable energies is being hampered by supply chain problems.

Willis Towers Watson (WTW) is a global advisory company that provides datadriven solutions around risk and capital that are designed to make organisations more resilient.

Its 2023 Renewable Energy Supply Chain Risk Report says that the rising price of raw materials, combined with supply chain shortages, bottlenecks and delays, are putting the future of many renewable energy plans at risk.

WTW surveyed 100 risk and supply chain leaders in companies providing technology, infrastructure and power generation in areas including hydro, solar, wind, biofuels, geothermal, battery storage and heat pumps.