Department of Energy’s Office of Manufacturing and Energy Supply Chains Releases Supply Chain Readiness Level Framework

The U.S. energy system is undergoing significant transformation driven by increasing electricity demand, aging grid infrastructure, and the rapid integration of energy resources. America's economic and national security interests depend on maintaining the energy system’s stability, affordability, and independence from foreign influence.  

Underpinning the U.S. energy system are global supply chains, each made up of complex networks of production steps from raw material extraction and processing, to manufacturing of intermediate sub-components, to final product assembly, and ultimately to end-of-life management to recover and reuse key materials. Recognizing the need for deeper insights into energy supply chain vulnerabilities, the Department of Energy’s Office of Manufacturing & Energy Supply Chains Office (MESC) pursued the development of the Supply Chain Readiness Level (SCRL) framework.  

SCRL assesses readiness and risks in key energy supply chains, informing investment and policymaking to increase U.S. energy security and enhance competitiveness. To do this, it applies a consistent set of metrics to each production step within a supply chain, enabling granular visibility into potential bottlenecks and opportunities for investment. SCRL is structured to be applied across a broad range of energy technologies, producing actionable insights that can be applied across the entirety of the U.S. energy system.  

To support the development and application of the SCRL framework, MESC leveraged the Modeling, Mapping, and Analysis Consortium (MMAC), a collaboration across MESC and DOE’s National Laboratories. Leveraging supply chain and technology expertise from founding members National Renewable Energy Laboratory, Argonne National Laboratory, and Idaho National Laboratory, the consortium set out to develop analytics tools including a consistent approach to measure supply chain risk from the perspective of the U.S. government.  

Recent action, including more than $80 billion in DOE grants and loans to spur energy resilience and manufacturing, has created meaningful momentum towards greater U.S. energy security. Maintaining this momentum and reducing reliance on foreign competitors represents a long-term challenge and opportunity, requiring a robust understanding of energy supply chains. MESC’s SCRL produces critical insights that can better target government action, including tax credits, trade measures, and public investment. SCRL illuminates the scope and nature previously hidden risks, incorporating country-level production and relative production costs to develop a clear picture of the competitive global landscape. While specific approaches to supply chain challenges may evolve over time, a robust understanding of supply chain risks and opportunities will remain critical for efficient and effective action for decades to come.

“We are really excited about the robust analytical capability that our analytics team in MESC has built in partnership with the national labs,” said Kelly Visconti, Principal Deputy Director for MESC. “As supply chains become more global and more complex, having a data-driven, reliable analytical capability to target effective, efficient intervention for energy supply chain needs is paramount to our national and economic security.”    

Learn more about MESC’s mission to catalyze investments in America’s energy future in support of the re-shoring, skilling, and scaling of U.S. manufacturing across energy supply chains.

Visit www.energy.gov/mesc/reports to learn about the framework.