Supply Chain Management in Renewable Energy Projects from a Life Cycle Perspective: A Review

Abstract

The growing demand for renewable energy positions it as a cornerstone for climate change mitigation and greenhouse gas emissions reduction. Although renewable energy sources generate around 30% of global electricity, their production and deployment involve significant environmental challenges. This review analyzes renewable energy projects from a life cycle perspective, focusing on environmental impacts throughout the supply chain. Particular emphasis is placed on the energy-intensive nature of manufacturing phases, which account for 60% to 80% of total emissions. The extraction of critical raw materials such as neodymium, dysprosium, indium, tellurium, and silicon is associated with emission levels ranging from 0.02 to 0.09 kg of carbon dioxide equivalent per kilowatt-hour for rare earth elements, along with an estimated average land degradation of 0.2 hectares per megawatt installed. Furthermore, the production of solar-grade silicon for photovoltaic panels consumes approximately 293 kilowatt-hours of electricity per kilogram, significantly contributing to the overall environmental footprint. Through a comprehensive review of the existing literature, this study integrates life cycle assessment and sustainable supply chain management approaches to identify environmental hotspots, quantify emissions, and propose strategic improvements. The analysis provides a structured, systematized, and data-driven evaluation, highlighting the relevance of circular economy principles, advanced recycling technologies, and digital innovations to enhance sustainability, traceability, and resilience in renewable energy supply chains. This work offers actionable insights for decision-makers and policymakers to guide the low-carbon transition.

Keywords

• sustainable supply chain
• renewable energy
• life cycle assessment (LCA)
• environmental impact
• energy sustainability
• carbon footprint