Supply chains pose biggest risks to Australia’s renewable energy ambitions

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The study by researchers from Adelaide University and Flinders University, finds that while renewable energy generation is advancing, progress is constrained by supply chain dependencies, grid limitations and fragmented policy settings. These factors could undermine long-term energy security.

“Australia has a unique opportunity to become a global leader in renewable energy, but this will require coordinated action across government, industry and research sectors,” said Dr Naresh Gupta from Adelaide University’s College of Business and Law.

“Rather than focusing solely on energy generation, the research calls for a more integrated approach that combines technological innovation, infrastructure development and policy alignment.”

Key recommendations include strengthening domestic manufacturing capacity, investing in grid resilience, improving coordination between government and industry, and building more sustainable supply chains.

The study, published in Australasian Journal of Environmental Management, highlights Australia’s transition is particularly vulnerable due to its reliance on global supply chains for critical materials and technologies.

“The biggest risk to renewable energy is not generation, it is the supply chain behind it,” said Dr Gupta.

“Australia has made significant progress in solar and wind energy, supported by abundant natural resources and growing investment; however, structural challenges remain, including reliance on imported technologies, grid integration constraints and uneven regional development,” said Professor Indra Gunawan from Flinders University.

“Addressing these issues is essential not only for meeting climate targets, but also for strengthening energy security and long-term economic resilience.”

The research draws on a review of academic and industry studies, guided by frameworks including energy transition theory and sustainable supply chain management.

It provides practical direction for policymakers and industry, calling for integrated, long-term strategies that align energy, industry and supply chain policy, alongside investment in local manufacturing, innovation and workforce capability.

“Renewable energy is no longer just an environmental priority, it is central to Australia’s economic and energy future,” Dr Gupta said.