Powering the future: navigating the renewable energy supply chain

Around the globe, we are on a journey towards a more sustainable and green future. As nations and businesses commit to net-zero targets by 2050, the demand for clean energy sources has skyrocketed. The Renewable energy sector plays a crucial role in reducing carbon emissions and meeting Net Zero Growth (NZG).

In this article, we will explore the supply chain behind renewable energy projects, the critical components and bottlenecks, and possible solutions to accelerate the shift towards a greener planet.

The current state of renewable energy

The renewable energy sector is making significant strides in the UK. According to UK.GOV, renewable electricity generation hit 50.9% of the UK’s production in the first quarter of 2024. This is a 2.2% increase from the same period last year, and just shy of the record set in the last quarter. The International Energy Agency (IEA) projects that solar, wind, and other clean energy sources will boost electricity generation by 90% over the next decade.

However, meeting these ambitious targets requires a resilient, efficient, and sustainable supply chain – capable of handling large-scale component delivery.

Components of the energy supply chain

The renewable energy supply chain begins with sourcing raw materials essential for building. For instance, solar panels require materials such as silicon, silver, and aluminium, whilst wind turbines rely on steel and copper.

Once the materials are sourced, they are transformed in manufacturing plants before being assembled into complex systems. Transporting these large components, to often remote locations, requires specialist project logistics, and the final installation process demands accurate coordination and management of arrivals to ensure safety and efficiency.

The obstacles

Despite advancements, renewable energy faces several disruptions. Scarcity of raw materials and sustainability of mining practices are pressing concerns, as are fluctuating prices. Transporting oversized components, such as turbine blades, over long distances also presents logistical hurdles. Additionally, local regulations and challenging terrains can delay installations.

Outside of the usual challenges, and as with any large-scale supply chain with multiple products, there is a delicate balance between cost, quality, and time when procurement challenges arise.

Customs duties, freight rates and availability, or other variables can change suddenly and without warning, and the race is then on between your procurement team and others with the same questions – what’s the impact on the project, what’s the cost of waiting vs paying a bit more for quicker supply, and how long do we have to decide until this option isn’t available.

It is a juggling act which requires a specialist’s touch at the best of times, and where experience makes the difference in a crisis.

Supporting the supply chain

Addressing these challenges, our experts provide crucial support by coordinating the global transport of spare parts, equipment, and raw materials for these builds. You work with a single point of contact from your dedicated multimodal project logistics team, who coordinate everything you need to succeed with renewable energy products, globally.

From overseeing abnormal and oversized component transportation to processing customs declarations and other regulatory documentation, we give you the comprehensive service you need to keep your supply chain on schedule and compliant.

Our ships agency division, VertomCory, is also on hand to provide additional support – including project management, risk assessments & surveyors, crew management on offshore projects, and much more. Whatever you need, our worldwide project logistics and shipping teams are here to make it happen for you.

For assistance with your renewable or alternative energy projects, please get in touch.

Speak with a member of
our Energy Team today