Building Resilient Supply Chains for a Clean Energy Future
As the world races to mitigate the devastating effects of climate change, the pursuit of renewable energy solutions has taken on a newfound urgency. But this transition to a greener, more sustainable future goes far beyond just generating power from renewable sources. It requires a fundamental rethinking of how these technologies are manufactured, transported, and deployed – all with an eye toward minimizing environmental impact and maximizing equity.
At the heart of this challenge lies the complex web of supply chains that underpin the renewable energy industry. From the mining of rare earth minerals to the assembly of solar panels and wind turbines, the global manufacturing network that brings clean energy technologies to life is rife with vulnerabilities. Reliance on overseas factories, fragile logistics networks, and a concentration of critical material sources in the hands of a few key players have exposed the industry to constant disruption.
“Supply chains are only as strong as their weakest links. Reliance on imports paired with untapped domestic manufacturing capabilities and the growing need for skilled workers can make the clean energy industry vulnerable to production shortages, trade disruptions, and natural disasters.”
The COVID-19 pandemic served as a stark reminder of these supply chain risks, as semiconductor shortages crippled automotive production and sent shockwaves through the global economy. But as the urgency to transition to clean energy has grown, so too has the recognition that these systemic vulnerabilities must be addressed head-on.
Fortifying the Clean Energy Supply Chain
Recognizing the critical role of resilient supply chains in achieving ambitious emissions-reduction goals, the U.S. Department of Energy (DOE) and its National Renewable Energy Laboratory (NREL) have embarked on a comprehensive effort to strengthen America’s clean energy manufacturing capabilities.
Led by Tsisilile Igogo, a researcher on detail to the DOE Office of Policy, a series of in-depth studies have been commissioned to map out the current state of clean energy supply chains and identify concrete policy actions to reinvigorate domestic production.
“The U.S. has done a great job investing in innovation. Now it is time to put the same effort into bringing these American innovations to market so that we’re prepared to meet anticipated growth in demand for clean energy.”
These DOE deep-dive reports, produced in collaboration with NREL and other national laboratories, tackle a diverse array of topics – from the supply chains for solar photovoltaics and wind power to the challenges surrounding critical materials like lithium and rare earth elements. The overarching goal is to bolster domestic manufacturing, keep costs in check for American families and businesses, create new jobs, and distribute the benefits of the clean energy transition more equitably – all while accelerating the fight against climate change.
Accounting for the Full Life Cycle
But the work doesn’t stop there. NREL’s contributions to these initiatives represent just a fraction of the laboratory’s broader research and development efforts related to clean energy manufacturing and supply chains. For over a decade, the DOE, other government agencies, and industry partners have turned to NREL’s expertise to tackle the complex challenge of greening the supply chain.
At the heart of this endeavor is a holistic, systems-level approach that looks beyond individual technologies or manufacturing processes. Sustainable manufacturing, in NREL’s view, must consider the full life cycle of clean energy products – from the extraction and refinement of raw materials to the eventual decommissioning and recycling of components.
“Sustainable manufacturing of clean energy technologies is about more than any specific technology. It needs to also consider all the upstream activities and materials required to manufacture the technology.”
This cradle-to-grave perspective has led NREL researchers to explore a wide range of interconnected challenges, from the carbon intensity of sourcing and manufacturing solar PV components to the development of new methods for recycling lithium-ion batteries and building materials. By taking this comprehensive view, the laboratory aims to minimize the environmental and social impacts associated with the clean energy supply chain, extend the lifespan of materials and products, and boost the overall efficiency of the manufacturing ecosystem.
Harnessing the Power of Data and Collaboration
Underpinning NREL’s supply chain research is a robust suite of data-driven tools and models, as well as strategic partnerships that bring together experts from across the national laboratory system, industry, and government agencies.
Through initiatives like the Joint Institute for Strategic Energy Analysis (JISEA) and the Clean Energy Manufacturing Analysis Center (CEMAC), NREL collaborates with a global consortium of researchers to generate cutting-edge analyses, benchmarking, and insights on the evolving landscape of clean energy manufacturing.
“NREL’s role as a trusted and unbiased partner makes it possible to aggregate data and create reliable metrics needed to run valuable analyses while protecting any proprietary information.”
These data-driven insights are then used to inform decision-making on R&D priorities and commercialization strategies for emerging clean energy technologies. By combining techno-economic assessments, life-cycle analyses, and supply chain modeling, NREL researchers are able to identify the most promising opportunities for strengthening the industry’s manufacturing backbone.
Elevating Environmental Justice
But the work of NREL and the DOE goes beyond just securing the supply chain – it also aims to address the systemic inequities that have long plagued the energy industry. As Igogo noted, “We need to make sure no one is left behind in the clean energy transition. This means that in every link of the supply chain, we’re weighing social, economic, and environmental impacts on underserved communities within the U.S. and beyond its borders.”
To that end, NREL’s research efforts are closely intertwined with the laboratory’s broader focus on energy justice – a holistic approach that seeks to ensure the fair distribution of the benefits and burdens associated with the clean energy transition. This includes collaborating with local communities to identify their unique needs and priorities, as well as exploring solutions that mitigate the disproportionate impacts on marginalized populations.
“NREL researchers continue to ever more closely examine the environmental and social impacts related to the clean energy supply chain. This includes looking at the carbon footprint of processes upstream and downstream from the manufacturing facility, as well as effects on air quality, the water supply, agriculture, and human health.”
By weaving energy justice principles into the fabric of its supply chain research, NREL is helping to ensure that the clean energy transition not only benefits the environment, but also uplifts local economies and empowers disadvantaged communities.
Fostering Global Collaboration
Of course, the challenge of greening the clean energy supply chain is not one that the U.S. can tackle alone. As Igogo noted, international cooperation with allied entities will be crucial in strengthening the global clean energy ecosystem.
From the U.S. commitment to the Paris Agreement to the recently established Australia-United States Net-Zero Technology Acceleration Partnership, NREL and the DOE are actively forging strategic alliances to share knowledge, align policies, and leverage complementary strengths across national borders.
“DOE and NREL also recognize how powerful global alliances can be. From the nation’s commitment to the worldwide Paris Agreement to DOE’s recent establishment of the Australia-United States Net-Zero Technology Acceleration Partnership and NREL’s work assisting the U.S. State Department in building trade relationships with friendly countries, this international cooperation with allied entities strengthens the clean energy supply chain.”
By fostering these global partnerships, the U.S. can not only bolster its own clean energy manufacturing capabilities, but also support the development of more sustainable and resilient supply chains** around the world.
The Path Forward
As the world accelerates its push toward a net-zero emissions future, the greening of the clean energy supply chain has emerged as a critical linchpin in the broader fight against climate change. And with the comprehensive efforts of the DOE, NREL, and their partners, I’m optimistic that we’re on the right track to building a more sustainable, equitable, and resilient manufacturing ecosystem for the clean energy technologies of tomorrow.
Of course, there’s still a long way to go, and the challenges ahead are numerous and complex. But by combining cutting-edge research, strategic data-driven insights, and a steadfast commitment to environmental and social justice, I believe we can unlock the full potential of renewable energy to transform our world for the better.
So let’s roll up our sleeves and get to work, shall we? The future of our planet may just depend on it.