The energy transition is in full swing. In many industrial countries, including Germany, over 50 percent of electricity already comes from renewable sources such as solar, wind, and hydropower. The European Union has set a goal of achieving net-zero emissions by 2050. Therefore, the expansion of renewable energy is crucial for meeting climate targets.
At the same time, however, the demand for resilient supply chains for these technologies is increasing. Supply bottlenecks and material shortages can slow down growth and lead to higher costs. Achilles supports companies in strengthening their supply chains and identifying vetted suppliers. Below, we will look at the specific challenges and solutions for each form of energy.
Solar Energy
Solar energy is the fastest-growing energy source in the EU. Between 2010 and 2020, the costs of solar power fell by 82%, making it the most competitive source of electricity in many parts of the EU.
However the solar industry faces significant challenges, particularly due to supply bottlenecks. Production is highly centralized and concentrated in a few countries. Raw materials needed for manufacturing solar panels are often difficult to obtain. These bottlenecks can significantly delay the expansion of solar energy and increase costs. Close collaboration within the industry is therefore essential to ensure supply security.
The centralized production and raw material procurement for solar technology create dependencies on a few markets. Delays and rising prices slow down expansion and increase costs for solar energy projects.
Achilles supports companies in the solar industry by providing a global, pre-qualified supplier network. Through market analyses and supplier audits, Achilles helps reduce dependence on a few raw material markets and identify more efficient transportation routes. This stabilizes supply chains and lowers costs.
Wind Energy
Wind energy is one of the most promising and sustainable sources of electricity generation, both on land and at sea. Advances in turbine development and more efficient manufacturing have reduced costs and improved the economics of wind power projects. In 2022, the share of wind energy in total renewable electricity generation in the EU was over 37.5%. Despite these successes, capacity still falls short of the requirements to meet the EU’s energy and climate goals by 2030. The EU and the wind industry plan significant investments.
The wind energy sector faces high transportation costs and a limited number of specialized suppliers for key components such as gearboxes and generators. The scarcity of essential raw materials like copper and steel leads to price increases and planning uncertainties. Additionally, dependence on a few international suppliers increases the risk of bottlenecks.
Achilles offers a solution through access to a global network of specialized suppliers. Through vetted partnerships and up-to-date market data, companies in the wind industry can identify alternative materials and suppliers. Additionally, Achilles supports with market analyses to optimize transportation logistics.
Hydropower
Hydropower provides a stable contribution to energy supply. However, the construction and maintenance costs of hydropower plants are high, and projects are often burdened by lengthy approval processes and complex logistical requirements.
The hydropower sector struggles with long approval processes that often take years, and challenges in material transport. The ongoing demand for construction materials and skilled personnel contributes to existing bottlenecks and delays.
Achilles helps streamline processes through targeted market information and partner networks. This simplifies approval processes and reduces logistics costs.
Our Global Energy Network offers companies tailored solutions to increase supply security and unlock alternative suppliers. Through our MyAchilles platform, you gain access to vetted supplier networks and comprehensive market analyses that help you implement your projects efficiently and cost-effectively. Contact us to learn more about how we can support you in achieving your renewable energy goals.
