Supply chain challenges may limit wind power expansion

Significance

However, pricing pressures are limiting supply chain expansion and causing manufacturing to shift from Europe to Asia. With raw material vulnerabilities already evident, OECD countries will struggle to maintain full supply chain security for a key energy transition technology.

Impacts

• OECD markets will see less direct job creation in the wind sector if the supply chain is globalised, with more manufacturing in Asia.
• Supply chains will become more vulnerable to geopolitical events such as war and trade disputes.
• Wind power capacity additions are likely to fall short of those needed to meet climate policy targets.