The Big Issues | Global Issues
GWEC'S GLOBAL MARKETS THEATRE AT WINDENERGY HAMBURG
Supply Chain Challenges, Tariffs and trade wars
Over the last few years, revenue pressure, pandemic-related challenges to logistics and workforce availability, the ongoing US-China trade conflict and a rise in prices for raw materials and commodities have impacted pricing and procurement of wind turbine components.
OEMs are under constant pressure to deliver against ever decreasing margins. Meeting the expectation of continuous innovation and cost out has led to a plateau in unit sales despite the increase in MW volume and overall increased ambition in many markets.
These factors have created “the perfect storm” and created a situation where it is difficult to have visibility for the amortization of investments.
Where wind manufacturing and export hubs have emerged (the top five globally are China, Europe, India, the US and Brazil), extensive local value creation has followed in the development of highly qualified workforces with skills in wind turbine technology design and engineering, wind resource estimation, business development and research, manufacturing, transportation, installation and O&M.
The global wind supply chain has consolidated for efficiency but is still exposed to headwinds, from competition for critical minerals to local content requirements to unexpected geopolitical events.
The need for long-term and adequately ambitious policy frameworks, as well as remuneration mechanisms for stable cost reductions, will be increasingly important for mitigating supply chain risks.
In addition, maintaining and regulating free and open international trade for wind turbine components will support healthy price competition and a more efficient global supply chain.
This session will take a deep dive into the pressures of the supply chain and how the industry is tackling the multiple challenges to ensure capacity can be increased to meet future demand.