Current global macroeconomic factors such as trade tensions and energy security due to the war between Russia and Ukraine, the cost-of-living crisis in Europe, and market pressures on commodity prices are affecting how renewable supply chains are operating.

In this piece, Wood Mackenzie Supply Chain explores the impact of these factors on future Capex and Opex costs, and how organisations can plan ahead to proactively de-risk their exposure to resulting market volatility – through project cost estimation tools.

We aim to address the issues that the renewable energy industry is facing, the macroeconomic dynamics influencing these issues, and how accurate cost estimation tools can support procurement teams during the current climate of;

1. Heightened demand from policy incentives;
2. Increased risk with supply from reduced economic activity in China; and
3. Cost inflation of commodities associated with the renewable energy transition