Major Gaps and Solutions in Hydropower Supply Chain
Major Gaps and Solutions in Hydropower Supply Chain
The U.S. Department of Energy (DOE) released a report identifying significant gaps in the hydropower supply chain. Drawing on feedback from stakeholders in the hydroelectric sector, the report offers recommendations for strengthening the supply chain in this field. Because hydroelectric systems have long lifespans of 30-50 years, spare parts planning presents considerable challenges. Additionally, some components have only one or two domestic suppliers, and in some cases none at all. Other challenges include procurement restrictions stemming from existing federal regulations, pressure from foreign competitors on the local market, and a shortage of qualified labor.
\nTo close these gaps, the DOE recommends establishing a database to track and identify domestic suppliers. It also emphasizes the need for collaboration with other sectors such as wind energy, shipbuilding, and defense to identify common components and materials, and to provide suppliers with predictable demand signals. Hydroelectric energy currently accounts for 27 percent of U.S. renewable energy generation, with the goal of increasing this share to 100 percent by 2035.
\nKey Points
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Five major gaps were identified in the hydropower supply chain.
\n Planning challenges exist in spare parts procurement.
\n Limited or no domestic suppliers exist for some components.
\n Federal regulations, foreign competition, and labor shortages are among other significant issues.
\n The DOE recommends a database to track and identify domestic suppliers.
\n Hydroelectric energy accounts for 27 percent of U.S. renewable energy generation.
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