Overcoming Key Challenges in the Renewable Energy Sector

The renewable energy sector is indeed experiencing significant growth, driven by global decarbonisation goals and advancements in technology. However, it is essential to recognise that companies, whether incumbents or innovative startups, encounter significant challenges when introducing products to the market, expanding into new regions, or expanding in their existing markets. From financing barriers to regulatory bottlenecks, these challenges can slow progress and increase costs. We understand these challenges and are here to help.

At Growth Lantern, we can help startups and SMEs in the renewable energy sector overcome these challenges with process and execution support. We have successfully helped companies in the steel manufacturing, building systems, and tube manufacturing industries navigate these obstacles with tailored solutions. In this blog post, we will explore the most pressing challenges and solutions, backed by the latest research and demonstrate how we enable your business success.

High Capital Costs & Financing

Renewable energy projects, particularly in offshore wind, hydrogen, and energy storage, require massive upfront investments. Startups often struggle to secure financing, as banks perceive them as high-risk (IEA, 2024; BloombergNEF, 2024). Meanwhile, established firms face pressure to deliver quick returns, making long-term projects harder to justify.

At Growth Lantern, we help these companies overcome such hurdles in multiple ways. During the R&D stage, Growth Lantern helps ensure reduced material dependency and costs by embedding circular economy principles early on. As the project moves closer to market introduction, we can help identify grant opportunities, structure investor-ready proposals, and establish cooperative partnerships to reduce costs and risks further. In addition, we can help create revenue models that minimise upfront customer costs post-launch.

Regulatory & Permitting Delays

Strict environmental regulations (e.g., the EU Net-Zero Industry Act 2024; EU Natura 2000 zones) and complex grid connection procedures can delay projects for years (European Commission, 2024; NWEA). These hurdles are particularly challenging for offshore wind and large-scale solar projects, where approval timelines can range from 5 to 7 years.

Collaboration is key to overcoming regulatory and permitting delays in the renewable energy sector. By working with experts to streamline the permitting process during development or engaging in policy advocacy for post-launch adoption, companies can stay engaged and proactive. Collaborating at critical moments during the development or design stages minimises the risks of delays, keeping companies actively involved in their projects.

Another way we have helped companies minimise delays is by making smart design decisions (modular design vs end-to-end design) that help navigate or circumvent regulatory and permitting hurdles.

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Supply Chain Bottlenecks

The renewables sector relies heavily on scarce materials (e.g., rare earth metals for turbines) and global suppliers (e.g., Chinese solar panels), leading to vulnerabilities (McKinsey, 2024). Disruptions, such as the COVID-19 pandemic or recent US trade tariffs, can derail projects.

As part of our proven go-to-market approach, we help identify and mitigate supply chain bottlenecks (e.g. single-supplier dependency) before the actual market launch. This proactive approach ensures minimum unforeseen delays. The outcome ensures uninterrupted operations and customer satisfaction upon the product's market launch.

Market Competition & Price Volatility

Dominant players (e.g., Ørsted, Shell) control a significant portion of the market, while fluctuations in subsidies (e.g., the Dutch SDE++ scheme or Germany's 2024 EEG amendment) lead to pricing instability. Startups and SMEs struggle to compete, while incumbents face pressure on their margins.

For companies in the renewable energy sector, strategic partnerships can be a powerful tool for empowerment. By focusing on niche markets, ensuring strategic partnerships for the initial period after launch, and regularly reviewing financial performance, companies can maintain their competitive edge. Our proven profitability and growth solutions empower companies to overcome market and pricing hurdles.

Final Thoughts

The renewable energy sector's potential is undeniable, but the path to commercialisation is fraught with obstacles. By addressing financing, regulation, supply chains, and competition strategically, companies can accelerate growth and scalability.

Growth Lantern is your partner in this journey. Let us turn challenges into opportunities: contact us today to discuss how we can help your business achieve success.

References:

• IEA Renewables, 2024.

• BloombergNEF Energy Transition Investment Trends, 2024.

• EU Net-Zero Industry Act, 2024.

• Dutch Wind Energy Association (NWEA).

• McKinsey Renewable Energy Supply Chains, 2024.

• DNV, 2023.