Achieving the renewables deployment ambitions in the British Energy Security Strategy will be challenging – unless industry and government coordinate to resolve supply chain constraints, according to a new Baringa report.
The Department for Energy Security and Net Zero (DESNZ) commissioned Baringa to conduct an in-depth investigation and analysis of the supply chains for key renewable and network technologies, both nationally and internationally.
It analysed offshore wind, onshore wind, solar PV and transmission and distribution network supply chains.
DESNZ also asked Baringa to recommend potential industry or policy-based interventions that could address those constraints for the period up to 2035.
Through interviews with over 80 renewables developers, network operators, suppliers, and trade associations, as well as modelling of many aspects of supply and demand, the company assessed the four supply chains that support UK renewables deployment.
The study identified a range of constraints, causes, and opportunities across renewable energy and network supply chains.
For offshore wind, floating foundations, export cables, balance of plant (HVDC and HVAC stations), turbine and foundation vessels, cable vessels, and ports were at the highest risk of delay.
For onshore wind balance of plant (transformers, switchgear) was at the highest risk, while for solar, balance of plant (transformers and switchgear) and EPC design and installation were subject to the most constraints in the supply chain.
To alleviate this, the report recommends developers, ports, and floating foundation manufacturers could collaborate more on aggregating demand and agreeing shared designs and manufacturing locations.
Furthermore, developers, network operators, and suppliers could collaborate on standardisation (for example, offshore grid connections for wind and transmission, and transformers and switchgear for wind, solar, and networks).
In addition, the government has recently announced in the new Transmission Acceleration Action Plan that industry has agreed to explore standardisation and establish a new UK supply chain council.