Rising government initiatives are encouraging the utilization of green and clean energy, leading to increased demand for Renewable Energy

Renewable Energy - Procurement Intelligence

Procurement of renewable energy does not just benefit business enterprises in reducing carbon emissions and reducing utility expenses, but in turn, it also creates a positive impact on society. The global market size was valued at USD 1.21 trillion in 2023. Currently, renewables are witnessing steady growth as demand, competition, and past investments are driving their growth amidst aggravating supply chain, grid, and labor issues. Businesses can lower their resource utilization and be protected from changes in the price and supply of electricity and oil by using renewable energy. In addition, purchasing renewable energy enhances a company's image as a ‘public welfare institution.’

Businesses are considering joint ventures for strategic reshoring to cash in on the developing domestic supply chain. For instance, one of the biggest producers of renewable energy in the U.S. has agreed to offtake over 39.9% of the production from a new solar panel factory that it is co-developing with a solar manufacturer; it currently owns the majority of the plant.

Distributed energy storage systems (DESS), advanced robotics, and blockchain are supplementing the procurement of renewable energy solutions, in addition to artificial intelligence and big data, and advanced photovoltaics. DESS overcomes production irregularities by localizing the generation and storage of renewable energy. Startups provide a range of battery and batteryless alternatives depending on financial and other considerations. For example, solid-state batteries are lightweight and offer great energy density, while flow batteries use low and consistent energy.

In terms of robotics, it increases process efficiency by enabling optimal and precise utilization of resources required in producing renewable energy. For instance, automated solar panels align themselves to optimize energy conversion. Energy firms are using blockchain technology to move the renewable energy industry towards trusted transactions. For instance, smart contracts facilitate peer-to-peer (P2P) exchange of power for transactive energy.

The global market is dominated by Asia Pacific, followed by North America and Europe. Throughout the projected timeframe, the North American market is anticipated to rise significantly. The industrial sector has witnessed a spike in the generation of power from solar cells due to the availability of more efficient products required to generate power and increased industry competitiveness. This has increased the variety of solar panels accessibility and decreased the cost of producing electricity, which has led to increased demand for the procurement of renewable energy in the region.

With regards to Europe, national action plans for renewable energy have been developed by all the member states of the European Union (EU), detailing the steps they will take to achieve the target. South America has a massive energy demand, which is primarily supplied by fossil fuel-based power plants. In an effort to mitigate the effects of climate change, the region is investing more money in renewable energy.

Key best practices for overseeing the supply chain and procurement in renewable energy projects include defining the parameters and scope of the project, designing a sourcing strategy, conducting workflow to streamline purchases and observing the performance. Besides, overseeing the coordination and logistics of the supply chain and ensuring the implementation of measures pertaining to quality control and assurance also underpin renewable energy projects.

Clearly defining the parameters and scope of the project is the first step in controlling the procurement and supply chain. It covers determining the goals, deliverables, specifications, limitations, and presumptions of the project. In order to assess the environmental, social, financial, and technical viability of the project, a business must conduct a stakeholder analysis, market analysis, and feasibility study. The project's roles, duties, policies, and procurement procedures should all be described in the procurement strategy. In addition, it is expected to outline the evaluation protocols, standards, and procurement techniques for choosing vendors, contractors, and service providers.

Request a free sample copy or view report summary: Renewable Energy Procurement Intelligence Report

Renewable Energy Sourcing Intelligence Highlights 

• The global renewable energy industry exhibits a fragmented landscape. It witnesses the presence of a large number of regional and global players and is characterized by a mix of innovative and new players, as well as established enterprises.

• The barrier to entry in the industry is moderate to low owing to the numerous government assistance programs available. It depends on product differentiation, government policies, capital investment, and economies of scale.

• China is the preferred best-cost country for sourcing renewable energy in the Asia Pacific. The nation’s manufacturing capabilities and capacity are reducing prices for products such as wind turbines, solar modules, and solar panels.

• The cost of generation (including raw materials), labor, equipment and machinery, rent and utilities, maintenance and repair, technology (software platform), and others are the key cost components for renewable energy. Other costs include administrative expenses, depreciation, employee certifications, insurance, and miscellaneous expenses.

Renewable Energy Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence, along with emerging technology and the regulatory landscape

• Market estimates and forecasts from 2024 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights:

As part of the Renewable Energy procurement intelligence report, Grand View Research has identified the following key cost components:

• Cost of Generation (include Raw Materials)

• Labor

• Equipment & Machinery

• Rent & Utilities

• Maintenance & Repair

• Technology (Software Platform)

• Others

  • Administrative Expenses

  • Depreciation

  • Employee Certifications

  • Insurance

  • Miscellaneous Expenses

Cost of Generation forms the largest key cost component of the Renewable Energy.

Renewable Energy - Key Suppliers

• ABB Ltd

• Acciona, SA

• Adani Green Energy Limited (AGEL)

• Enel Green Power S.p.A.

• ENGIE SA

• GE Vernova Group

• Innergex Renewable Energy Inc.

• Invenergy LLC

• Siemens Gamesa Renewable Energy, S.A.U.

• Suzlon Energy Ltd

• Tata Power Renewable Energy Limited (TPREL)

• Xcel Energy Inc.