Deloitte Insights Electric power supply chains: Achieving security, sustainability, and resilience As supply chain disruptions become the new norm, what strategies is the electric power sector adopting to mitigate their impact? Contents Introduction 2 Demand growth could widen the gap between climate goals Building sustainability into the electric power supply chain is A circular economy can boost supply chain security, sustainability, Multiple disruptors impact the electric power supply chain 3 and critical material supplies 7 Securing the electric power supply chain is increasingly critical 11 becoming a priority 14 and resilience 17 Creating robust electric power supply chains: The road ahead 22 Endnotes 23 Electric power supply chains: Achieving security, sustainability, and resilience Introduction OVER THE PAST two years, multiple disruptions to supply chains have affected operations across most industries. And the electric power sector is no exception. The sector was grappling with numerous challenges within its supply chain networks even before recent disruptions driven by the pandemic and the Russian invasion of Ukraine.1 These disruptions—ranging from logistics bottlenecks to shortages of raw materials and components and labor shortages—have resulted in rising costs and a scarcity of essential electric supplies.2 They have also widened the gap between demand and supplies of electrical equipment and components, slowing the clean energy transition. As a result, many electric power and renewable energy companies are revisiting supply chain strategies and rebooting their approach to supply chain risk management—and their boards increasingly expect it. Some are integrating supply chain management deeper into busin...
