The clean energy transition in the United States is surging forward despite concerns over reliability, supply chain constraints, and financial challenges.

The North American Electric Reliability Corp.'s (NERC) 2023 Summer Reliability Assessment warns of potential energy shortfalls in two-thirds of North America due to extreme summer temperatures and ongoing drought conditions. While wind, solar, and battery deployment has positively impacted the system, the retirement of traditional generators increases the risk of supply shortages, particularly in the western regions.

Supply chain constraints and labor issues pose additional challenges. NERC highlights that maintenance and summer preparedness are hampered by supply chain issues, and low inventories of replacement power transformers could slow restoration efforts after severe weather events. Furthermore, the power industry faces shortages of electrical steel, impacting the construction of electric vehicle chargers and other electrical equipment. Labor shortages in the construction and manufacturing industries are also affecting the power sector.

However, the growth of energy storage capacity remains a bright spot in the clean energy transition. With government support and equity-intensive financing, energy storage is poised for significant expansion. Hybrid project installations combining renewables with energy storage are setting records, and American Clean Power reports a record-breaking year in 2022 for energy storage. Although challenges remain, such as the global supply chain for lithium and vanadium, domestic manufacturing and funding provisions in the Bipartisan Infrastructure Investment and Jobs Act aim to strengthen domestic supply chains and support the growth of energy storage.

Despite hurdles, the renewable energy sector continues to move forward, driven by the need for clean energy solutions and the potential for explosive growth in energy storage. While weather-dependent reliability concerns persist, the transition to renewable energy sources is showing resilience and determination. By addressing supply chain and labor issues, focusing on domestic manufacturing, and leveraging innovative financing structures, the United States aims to overcome uncertainties and advance its clean energy goals.

Source: powermag.com