Executive Summary

• Jacobs has published The Energy Readiness Report analysing the energy transition across five countries including the UK – which had the highest proportion of respondents seeing grid or network readiness as a key delivery barrier
• The report praised the ‘meaningful progress’ the UK had taken with Clean Power 2030, connections reform, and NESO spatial planning architecture – yet greater certainty around grid access, commercial viability and long-term demand is required
• In five years’ time, the UK ‘can move beyond standalone projects to create a truly integrated energy system’, the report notes

Around three in five (59%) UK respondents to a survey from Jacobs rank grid or network readiness as among the top three delivery barriers to the energy transition – the highest among the countries polled.

The report, The Energy Readiness Equation, polled 600 senior energy sector decision makers in five countries across four continents – Australia, Germany, Singapore, the UK, and the US. Overall, 71% of those polled believe sufficient capital is available in their industry, yet only 29% believe there is both enough capital and sufficient investable energy infrastructure projects.

This gap can be seen in other areas. More than half of those polled (57%) say the readiness of other infrastructure systems outside their direct control is either a major or critical constraint on energy infrastructure delivery.

In analysing the UK’s outlook, the report argues there is ‘meaningful progress’ with Clean Power 2030 and connections reform initiatives, as well as the National Energy System Operator (NESO’s) spatial planning architecture. Yet greater certainty around grid access, planning, commercial viability and long-term demand is required. Around two thirds (64%) say permitting and consenting, as well as policy or regulatory uncertainty, are constraints. 69% of UK respondents believe sufficient capital is available, with 31% seeing enough investable projects.

The overall message is to convert better planning into faster delivery – and the report outlines how this could work. The short-term focus must be on streamlining planning, grid connection and regulatory processes so critical infrastructure can be built at the required place, the report notes, while in five years’ time, the UK ‘can move beyond standalone projects to create a truly integrated energy system’.

A decade beyond that, the report notes the UK has the potential to become a globally recognised clean energy leader, with success measured ‘by the creation of a highly resilient and adaptable energy system.’ “It is much harder to invest if businesses can see only five years ahead,” said Julian Leslie, strategic energy planning director and chief engineer at NESO. “A credible long-term plan gives industry and those financing the energy transition the confidence they need to decision-make.”

From a global context, however, the report found that common delivery challenges appear across all five geographies, even if they are playing out differently. Patrick Hill, Jacobs president of global operations, noted the importance of this, saying there is a lot countries can learn from each other.

“From our own experience, delivery improves when the industry shares what works and addresses dependencies earlier – with governments, regulators, investors and delivery teams working from a collective view of what is needed,” said Hill. “That is how energy ambitions become infrastructure that serves economies and communities for decades.”

You can read the full report here (email required).

Picture credit: Created with Magnific