Today, the U.S. Department of Energy has released America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition, supported by 13 deep-dive supply chain assessments across the energy sector, ranging from solar energy to semiconductors to cybersecurity. DOE’s Office of Electricity contributed two reports focused on grid storage and electric grid supply chains to this effort.
"The U.S. Department of Energy recognizes that a secure, resilient supply chain will be critical to meeting our clean energy goals and capturing economic opportunities in the clean energy transition," said Patricia A. Hoffman, Acting Assistant Secretary for the Office of Electricity. "Strengthening our national electric infrastructure is paramount, however many critical components supporting the grid have limited, to no, domestic manufacturing capacity and face complex challenges in supporting a rapid expansion. In addition, meeting the rapid increase in renewables and adoption of electric vehicles will require a significant increase in grid scale energy storage, but there are supply chain vulnerabilities that must be addressed. The reports released today help forge a path forward for domestic leadership in these important technologies."
Electric Grid Supply Chain
Advances in grid hardware, specifically in large power transformers (LPT) and high-voltage direct current (HDVC) transmission, will be necessary to achieve the full value of grid modernization.
- It is estimated that over 90 percent of the nation’s consumed power passes through an LPT, but the small number of U.S. based component manufacturers makes it difficult for domestic large-scale transformers to be cost competitive with imports.
- Many large-scale renewable resources are in remote or offshore areas, which are typically far away from load centers, and require efficient delivery of the energy over long distances. HVDC transmission technology has the operational flexibility to accommodate an increase in renewables, but low-demand due to complex implementation and uncertain cost recovery has caused a supply chain bottleneck.
Modernizing the grid to meet electrification needs will require a significant increase in long duration energy storage, and the corresponding domestic manufacturing of these technologies.
- Reliance on other countries for components and products for the current dominant grid storage technology, lithium-ion batteries, makes the supply chain vulnerable, and the limited adoption of alternative inexpensive and abundant materials doesn’t support the establishment of a robust supply chain for them.
- Focusing on second-life and recycling technologies can alleviate concerns about environmental and climate impacts of material refining, battery manufacturing, and recycling industries.
- Many long duration-capable technologies utilize materials that are inexpensive and abundant, but these nascent technologies lack developed supply chains.
To learn more about “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,” view the Fact Sheet, the entire report, or the 13 deep dive assessments.
