Overview of the alternative energy industry
Alternative energy sources are free and renewable sources of energy that are low on carbon emissions when compared with conventional sources of energy. They can be defined as any non-traditional energy source that meets the needs of the end-users. Unlike traditional energy sources, alternative energy sources do not make use of fossil fuels. The global alternative energy market is divided into three sub-segments, namely:
- Solar energy
- Wind energy
- Geothermal energy
The growing need for renewable energy sources due to the depletion of fossil fuels is expected to drive the global demand for alternative energy. Also, the rapid advancements in energy storage and distribution technologies will further fuel the market’s growth. Due to such factors, the global alternative energy sector is expected to witness accelerated growth in the foreseeable future.
The Business Challenge and Journey
A leading player in the energy industry was looking at leveraging SpendEdge’s risk analysis solution to identify factors hindering them from accomplishing their business goals. Their inefficient supply chain strategies were also contributing to major losses across the supply chain. As such, they wanted to refine their supply chain strategies to mitigate risks and enhance business growth. The alternative energy client was also looking at reducing the company’s risk profile by improving the efficiency of their overall supply chain operations.
To identify challenges in the supply chain management, the risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the energy industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage risk analysis?
For any organization, gaining maximum value from the supply chain while meeting the end-users’ demands for sustainability and ethically sourced products is a difficult balance to achieve. To do so, organizations will have to assess their supply chain processes and identify the risks across the supplier network. Our risk analysis solutions help firms in developing and implementing appropriate risk mitigation strategies.
The assessment affects nearly every aspect of an organization including product development, R&D, demand and supply planning, manufacturing, delivery of goods, and customer returns. Moreover, the dynamic nature of supply chains across industries has made risk analysis an essential component of enterprise risk management.
Fundamental questions answered in this risk analysis study include:
With the help of risk analysis solution offered by SpendEdge, the alternative energy provider gained a better understanding of the process of risk discovery. The client was also able to identify and quantify the impact of each risk factor on their overall business growth. Additionally, our risk analysis experts offered recommendations on the ways to categorize risks and prevent the probability of their occurrence.
Moreover, the risk analysis solution enabled the client to achieve breakthrough improvements in their overall supply chain performance. Furthermore, it offered relevant insights to better understand the market scenario, supplier negotiation strategies, industry standards, and expectations.
Alternative energy industry challenges:
- Commercialization– Closely associated with the issue of timing and scalability is commercialization or the question of how far-off a proposed alternative energy source stands from being fully commercialized.
- Substitutability– An ideal alternative energy form would be one which can be directly substituted an existing form without requiring further infrastructural enhancements. However, this is very hard to achieve and is particularly pronounced in the case of the electrification of transportation, such as with electric vehicles.
- Energy density– A major disadvantage of low energy density is that it results in a much greater resource consumption. Several alternative energy storage and distribution technologies are characterized by low energy densities, which means that their deployment will result in higher levels of resource consumption.
To know more about our risk analysis solutions for the energy industry