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The HC Commodities Podcast

Renewables: The Imperative for Discipline with Julie McLaughlin & Elizaveta Malashenko

Nov 22, 2023
Julie McLaughlin and Elizaveta Malashenko of Alvarez & Marsal discuss challenges and opportunities in the renewable energy sector, including rising costs, disrupted supply chains, and the impact of weather events. They explore the importance of building resiliency and robustness, as well as the challenges faced by renewable energy projects in unpredictable markets and changing weather patterns. Additionally, they highlight the significance of interest rates, commercialization challenges, and the role of batteries in the renewable sector. They also touch upon the future of the industry and public understanding.
39:57

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Quick takeaways

  • Renewable projects are facing supply chain challenges, including increased demand, scarcity of transformers, and disruptions in solar panel supply due to forced labor regulations.
  • Renewable companies need to prioritize asset and operational resilience to climate events, which can be achieved through weatherization, grid system improvements, and understanding the impacts on assets and markets.

Deep dives

Current Challenges in the Renewable Sector

2023 started with excitement and momentum in the renewable space, but encountered headwinds including inflation, interest rate increases, and supply chain challenges. Stock market valuations have declined and power purchase agreements are becoming less profitable due to increased costs and supply chain issues.

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