The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) has released seven deep-dive assessments of clean energy manufacturing supply chains, including hydropower.
In these assessments, DOE reviews the obstacles to a reliable supply of key materials and components and opportunities for improvement. Each assessment focuses on a different technology or resource that will help the Biden Administration achieve its goal of net-zero carbon emissions by 2050. The technologies and resources covered in the seven deep-dive assessments are: electrolytic hydrogen, hydropower, platinum group metal catalysts, rare-earth magnets, semiconductors, solar energy and wind energy.
The Hydropower Supply Chain Deep Dive Assessment seeks to identify potential bottlenecks, challenges and opportunities, particularly if the U.S. demand for hydropower components grows significantly to meet decarbonization targets. It found that while the existing U.S. supply chain is mature and effectively supports the nation’s large hydropower fleet, anticipated new construction and the need to complete refurbishments, upgrades and relicensing activities point to the need to scale up domestic supply chain activities.
Growth in U.S. demand for hydropower components and related services may arise from a combination of increased refurbishments and upgrades — partly connected to the wave of Federal Energy Regulatory Commission relicensing activity expected to take place during the 2020s — and construction of the new hydropower capacity needed to achieve clean energy goals. However, the U.S. hydropower supply chain faces vulnerabilities related to securing large components with long lead times, managing global disruptions and maintaining a well-trained workforce.
Modernization of the existing hydropower fleet, along with new construction, could drive expansion of domestic manufacturing, reshoring and foreign direct investment in the U.S. hydropower supply chain. Reshoring manufacturing of critical components — or those that are difficult or impossible to source domestically (such as large steel castings, forgings and windings for generators) — should be a high priority to improve supply chain resilience and meet increased U.S. demand for domestically produced hydropower components.
“The transition to a clean energy economy cannot proceed without a steady supply of the materials and components required to manufacture clean energy products,” said Kelly Speakes-Backman, principal deputy assistant secretary for EERE. “The assessments released today highlight the wealth of opportunities that will come with domestic supply-chain expansion, including new jobs, new manufacturing infrastructure, and faster, cheaper deployment of clean energy technologies.”
EERE’s Solar Energy Technologies Office, Wind Energy Technologies Office, Water Power Technologies Office, Hydrogen and Fuel Cells Technologies Office, and Advanced Manufacturing Office contributed to the development of the reports. EERE’s mission is to accelerate the research, development, demonstration and deployment of technologies and solutions to equitably transition America to net-zero greenhouse gas emissions economy-wide by no later than 2050, and ensure the clean energy economy benefits all Americans, creating good paying jobs for the American people.
