Supply chain offers challenge to UK energy transition, says report
14 Jan 2025
Supply chain difficulties remain the main risk to the UK’s energy transition plans, with lack of investment and access to technology also key factors, suggests a report from global energy consultants Aggreko.
Its study, Rebalancing the Energy Transition, interrogated some 400 CEOs of businesses with turnovers of €200 million minimum in the four largest West European economies –Germany, France and Italy, in addition to the UK.
MD for Aggreko UK and Ireland Alan Dunne said: “With continued uncertainty around energy cost and resilience, businesses in the UK are facing the challenge of balancing profitability and sustainability.
“Much like the government and its Clean Energy 2030, UK businesses remain ambitious in making their energy transitions. However, our research has found that barriers and challenges still remain, even though the ambition to fund the energy transition is there.”
Although high energy costs and fluctuating energy security and resilience remained challenges, he said, business leaders regarded supply chain issues as the biggest area of risk to transition.
The UK government’s reaffirmation of a commitment to renewable energy production and infrastructure through the Clean Power 2030 initiative has increased focus on the likely impact for industry.
The initiative targets the removal of existing barriers, with approval powers for onshore wind projects over 100MW to ministers rather than individual local authorities.
Aggreko’s study revealed that eight in 10 UK CEOs responding vowed to boost investment in energy transition over the next year. However, nine out of ten said they had adjusted transition timescales around energy transition targets.
Yet of the CEOs, the UK contingent had the highest proportion (52%) stating that short term goals only had been adjusted, so their net zero targets remained in force.
Dunne added that balancing commercial and ESG ambitions with energy procurement would be essential to success.
He said: “Making a success of the energy transition relies heavily on businesses having the right technologies and solutions for their requirements, along with the expertise to implement it correctly. While reliable energy supply and stable costs remain in the balance for the UK, working with expert energy supply partners can provide businesses with this to provide resilience and cost efficiency throughout the energy transition.”
Photo: Frans van Heerden
