Renewables have overtaken coal as the world’s largest source of electricity, according to a recent BBC report. Solar and wind are expanding faster than ever, driving a historic shift in global energy systems. But this rapid growth comes with a hidden cost: increased complexity and risk across global supply chains.
The issue is straightforward: the clean energy sector depends heavily on a limited number of suppliers and regions. China, for example, dominates solar panels, batteries, and electric vehicle components. A single disruption can cascade across projects worldwide. The BBC article notes that while renewables are booming in developing countries, growth in developed markets is uneven, adding another layer of uncertainty for international supply chains.
These risks create significant challenges for businesses:
- Limited visibility beyond Tier 1 suppliers: Many organisations know their immediate suppliers but lack insight into sub-tier partners. Unknown financial weakness, compliance gaps, or ESG violations can silently escalate into major problems.
- Rapid scaling pressures: Suppliers often expand production quickly to meet global demand, sometimes outpacing their governance and quality controls. This creates operational vulnerabilities and higher failure risk.
- Complex regulatory environment: The renewable energy sector is subject to fast-changing rules and sustainability requirements. Tracking compliance across multiple jurisdictions is challenging and resource intensive.
- Dynamic market conditions: Prices, demand, and technological adoption fluctuate quickly. Supply chain disruptions can create cost overruns and delays that impact project delivery and competitiveness.
The solution lies in proactive, intelligent supply chain risk management. Achilles provides organisations with verified, multi-tier visibility into suppliers, tracking financial stability, operational performance, and compliance continuously. This goes beyond simple audits or self-reported questionnaires. Every supplier’s data is validated, updated, and monitored, ensuring decision-makers have a complete picture.
In a sector growing as fast as renewable energy, reactive management is no longer enough. Companies that leverage Achilles Risk Management gain the foresight and control to mitigate risk, protect projects, and navigate the energy transition successfully.
