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Solar Farm BESS Sunset RPS Ideas For Faster Energy Transition.00 00 01 05.Still010

Navigating market, skill and supply chain constraints for energy projects

Options for navigating supply chain, skill and market constraints

It’s no secret that the energy sector is running hot. You need only look at Infrastructure Partnerships Australia’s Pipeline Forecast which (as of late 2024) shows labour demand for the energy sector literally off the charts in most states over the next four years. And labour isn’t the only issue. Cross-sector competition for skills, and the requirement for specialist components and materials from overseas are real pressure points for the local energy industry.

Making sure you truly understand the operational context in which you are trying to deliver is the first step in managing these issues. Engaging in early market engagement to attract maximum interest in your project, adopting a flexible, agile approach to delivery, and capitalising on industry connections can also help keep projects moving forward.

All energy transition ideas Next in focus: data, tech and innovation

Market, skill and supply chain management ideas

1 | Invest in market capacity assessment

With so much competition in the market, those with big portfolios can benefit from an independent assessment of market capacity. This involves an in-depth look at how ready the market is to deliver your project pipeline and where gaps in labour availability or skills could pose risks to project cost and timeline. This is especially important in current conditions where multiple sectors are often competing for the same labour pool.

2 | Engage the market as early as possible

Engaging with potential industry partners early in the project development phase (before starting a formal procurement process or even at the scoping phase), can help maximise value for money when it comes to delivery. While many project owners fear sharing information too early, it can help both sides prepare for a competitive procurement phase and reduce overall risk.

In focus: market capacity assessment

Western Australian projects often face additional delivery hurdles due to the state's relative isolation, high level of competition for skilled labour, and challenges attracting workers from interstate. RPS' economics team has supported a confidential client to assess how the WA market could cope with its long-term pipeline of infrastructure investment through a detailed, scenario-based analysis of market capacity, and delivery phase risks.

Market Capacity Assessment Cranes Suns — How ready is the local market to deliver your project?

3 | Invest in local workforce development

Developing a local workforce can help alleviate skill shortages while creating community benefits, such as job creation and economic growth. Consider setting up training programs, apprenticeships, or certifications in collaboration with local colleges, trade schools, or Indigenous communities to build the skills needed for your project. Engaging and upskilling the local workforce reduces reliance on external labour, which can be costly or difficult to attract – particularly to regional areas.

4 | Strengthen relationships with key suppliers

Building strong partnerships with key suppliers and vendors creates a more resilient supply chain. Open communication allows project owners to anticipate issues, such as material shortages or delivery delays, and to work together with suppliers on solutions. Long-term contracts or preferred supplier agreements may help secure access to critical materials and ensure supplier commitment to project timelines.

5 | Diversify supply sources where you can

While this can be tricky with some components, relying on a single source for critical materials or components creates vulnerability. To reduce risk, project owners should consider sourcing key materials from multiple suppliers and locations, both domestically and internationally. Diversified sourcing helps mitigate the impact of supply disruptions, such as delays due to global events, transport issues, or raw material shortages.

6 | Secure equipment and materials early

For items with long lead times or potential scarcity, securing contracts or ordering materials early in the project planning phase can be an insurance policy against shortages and delays. Key equipment like transformers, specialised construction machinery, or high-demand renewable energy components should be prioritised to avoid delays. Early ordering and negotiated delivery schedules ensure critical items are available when needed.

In focus: creative solutions for supply chain risk management

When it comes to construction, supply chain disruption can mean big problems. While global markets have left the pandemic years behind, geopolitical sands are shifting and the risk of future supply chain issues still looms large. Here, RPS project specialist, Steven Quaglia, explores why a creative, practical approach to sourcing and management can help mitigate supply chain risks.

Construction project manager with site workers.jpg — Ideas for ensuring supply chain isn't your project's weakness

7 | Implement flexible project scheduling

Build flexibility into the project schedule to accommodate supply chain or labour disruptions. Avoid setting rigid timelines for all tasks and instead use phased or overlapping schedules where feasible. Flexibility allows for the reallocation of resources or adjustments to project phases if certain materials or skills are temporarily unavailable, helping to keep your project moving forward. A project management team with experience across large capital works programs can support with this.

8 | Lean on your consultant network for specialist skills

For projects requiring niche skills that are difficult to source locally, talk to your consultant network. As an example, RPS is part of Tetra Tech group - an international network of more than 28,000 consultant specialists. High-transmission skills are currently in short supply in Australia, but we can connect you with international colleagues from North America with this expertise.

9 | Monitor market trends and prepare for cost variability

The cost of certain materials, particularly metals, energy, and transportation, can fluctuate significantly. Monitoring market trends and understanding factors that could affect supply and costs (like tariffs, currency exchange rates, and commodity prices) allows project owners to anticipate cost changes and plan accordingly.