Renewable energy industry faces economic challenges as costs rise, supply chain issues escalate, and protectionist policies take a toll.
Rise and Fall of Renewable Energy
In recent years, renewables like solar and wind saw significant growth, making clean energy competitive with traditional sources. However, the industry is now facing economic struggles due to various factors.
Challenges in Economics and Supply Chain
The renewable energy sector is grappling with rising costs along the supply chain, including the surge in prices of key materials like polysilicon and steel. Delays, manufacturing failures, and transportation issues for wind turbines are adding to the woes.
Impact of Protectionist Policy
The industry is dealing with the impact of protectionist measures such as anti-dumping duties, local-content regulations, and subsidies, affecting the availability and pricing of solar panels, wind turbines, and their components.
Prospects and Strategies
Despite the challenges, the industry is adapting by managing price increases, addressing supply chain issues, and seeking profitability. Renewables’ prospects hinge on addressing permitting delays and navigating protectionist policies.