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Guy Smith Addresses Supply Chain Concerns in Solar Power World

In the News
12.29.2021

Partner Guy Smith discusses supply chain concerns within the solar power industry in an article published on December 29 for Solar Power World.

Current market conditions are causing disruptions in the equipment supply chain for many solar projects that are in development or construction. Developers, owners and contractors are advised to develop an awareness of the steps needed to address or minimize the supply chain risks that may arrive.

In the article, Smith recommends that solar project stakeholders should understand contracts and related risks, especially force majeure provisions, address specific supply chain issues in new contracts that could arise, consider alternatives and/or back-up supplies and monitor policy and other developments that affect the industry.

“In anticipation of supply chain disruptions (or if supply chain disruptions are already being experienced), developers and owners should try to identify and preserve additional sources of supply,” writes Smith. "While leveraging contractual strengths or weaknesses may strengthen a party’s negotiating position in the short term, parties involved in projects that are under construction and that have been affected by supply chain disruptions will generally need to cooperate and work together if they want the solar project to be built and completed notwithstanding the delay."

Smith has extensive experience with renewable energy projects and related transactions and is the co-head of the firm's Renewable Energy and Energy Transactions Practice Group.

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