1. Introduction

The renewable energy sector plays a critical role in the global energy transition. Over recent years, the sector has experienced substantial growth driven by the increasing recognition of the need to address climate change, reduce carbon emissions, and achieve sustainable development goals. Governments and organizations worldwide are investing heavily in renewable energy to reduce dependency on fossil fuels, mitigate environmental impacts, and enhance energy security ^[1].

In recent years, the role of the renewable energy sector has expanded significantly. Advances in technology, reductions in costs, and supportive policies have accelerated the deployment of renewable energy sources such as solar, wind, hydro, and bioenergy. According to the International Renewable Energy Agency (IRENA), renewable energy capacity has been increasing at an average annual rate of over 8% in the last decade ^[1]. This growth reflects a shift from renewable energy being a supplementary energy source to becoming a central component of the global energy mix.

Renewable energy plays varying roles across different countries. The EU has been a global leader in renewable energy adoption, with countries like Germany, Denmark, and Spain achieving high penetration rates of renewables in their energy mix. The EU’s Green Deal and targets for carbon neutrality by 2050 further underscore the sector’s importance ^[2].

As the world’s largest renewable energy market, China has made significant investments in solar and wind power, aiming to peak carbon emissions before 2030 and achieve carbon neutrality by 2060 ^[3].

In the U.S., renewable energy sources are rapidly gaining importance due to federal and state policies, corporate commitments, and the declining costs of renewables. As the world’s largest economy, the U.S. renewable energy sector wields significant influence over the global environmental industry.

Despite having vast oil reserves, countries like Saudi Arabia and the United Arab Emirates are increasingly investing in renewable energy to diversify their economies and reduce reliance on fossil fuels. However, they still rely on fossil fuels ^[4].

The advantages of renewable energy are manifold: Firstly, it reduces greenhouse gas emissions and air pollution, contributing to improved public health and environmental sustainability. Secondly, diversification of energy sources enhances energy security by reducing dependency on imported fuels. Lastly, the renewable energy sector not only creates jobs but also stimulates technological innovation, ultimately driving economic growth.

The disadvantages of renewable energy include the intermittent nature of sources such as solar and wind, which necessitate sophisticated grid management and energy storage solutions to maintain reliability. Although costs are decreasing, renewable energy projects often require a substantial initial investment, posing financial challenges. Additionally, the renewable energy sector is vulnerable to supply chain disruptions, which can hinder the availability of critical components and materials, thereby affecting project timelines and financial performance.

The renewable energy sector has faced significant challenges in its supply chain since 2020, prompting a comprehensive analysis to uncover their origins. Similar to other industries, the renewable energy sector is subject to cyclical patterns influenced by governmental policies, investment patterns, and technological progress. Despite its promising long-term trajectory, the industry remains susceptible to fluctuations driven by various internal and external factors.

Supply chain disruptions within the renewable energy sector encompass interruptions in the flow of crucial materials, components, or services essential for the manufacturing and distribution of renewable energy technologies such as solar panels, wind turbines, and batteries. These disruptions, arising from natural calamities like earthquakes, geopolitical tensions, economic downturns, regulatory shifts, or unforeseen events such as the COVID-19 pandemic, often result in delays, increased expenses, and challenges in meeting market demands.

Among natural calamities, geopolitical tensions, economic downturns, regulatory shifts, and pandemic-related disruptions, all are ultimately critical due to their potential to cause significant project delays, increase costs, and impact the availability of essential components. However, pandemic-related disruptions, although rare, have more significant impacts than other disruptions such as labor shortages and transportation issues. These disruptions deserve research attention to enhance resilience, support technological advancement, and ensure the sector’s continued growth and contribution to global environmental and economic goals. Studying supply chain disruptions helps in developing strategies for resilience and better strategic planning. Understanding the causes and impacts of disruptions enables companies and policymakers to implement countermeasures, diversify supply sources, and develop contingency plans to mitigate risks.

Extreme climate events are increasingly likely, leading to frequent disruptions that can cause significant losses (Pathak et al. 2022). Natural calamities have impacts similar to pandemic-related disruptions. Studying pandemic-related disruptions can also help identify effective countermeasures for natural calamities.

Can supply chain disruptions in the renewable energy sector be prevented? Labaran and Masood ^[5] stated that Industry 4.0 technology has the potential to enhance green supply chain management within the renewable energy sector. Leveraging various Industry 4.0 technologies such as blockchain, Internet of Things (IoT), Big Data, and Artificial Intelligence (AI) can enable efficient supply chain management through real-time data and intelligent systems. The European Commission coined the term “Industry 5.0” ^[6]. Industry 5.0 integrates resilient, sustainable, and human-centric approaches in both organization and technology, surpassing the purely technological focus of Industry 4.0 ^[7]. However, while cyclical fluctuations in the renewable energy industry cannot be entirely eliminated, they can be mitigated. Thus, strategies to thrive during supply chain disruptions remain crucial for both entrepreneurs and government entities, and this research aims to tackle such challenges.

For example, the pandemic has significantly impacted both ongoing and operational solar projects due to supply chain and construction disruptions. The rooftop solar sector has been hit hardest, as it mainly comprises relatively smaller firms lacking the financial capacity to withstand the losses ^[8]. Throughout the COVID-19 pandemic, almost 75% of solar energy system companies in Africa remained operational, but during the lockdown, the majority anticipated facing insolvency ^[9]. Monitoring the financial ratios of renewable energy firms is essential to ensure their long-term viability.