Long-term intent but lacking detail to boost investment

Sheena McGuinness, Co-Head of Energy and Natural Resources at RSM UK, reacts to UK Infrastructure: A 10-year strategy: “Taking a collaborative approach to reforming connectivity for our grid and prioritising clean energy projects, while aligning with the housing and industry needs, could be a game-changer. However, upgrades to the grid and wider planning support still needs to be there to ensure the projects get the green light; get connected; and power can reach where it’s needed. Rhetoric without a tangible roadmap on what will be done, and when, will not remove what is a key blocker to progress. 

“There is future intent within the strategy to address the UK’s flexible capacity needs. Technology will need to be at the heart of it to ensure data-driven insight is applied to what infrastructure is needed and where across the UK. However, a decision around zonal pricing and clarity on GB Energy’s priorities needs to be accelerated to boost investor confidence. 

“Investing £330m in supply chain for domestic offshore wind through GB Energy is a step in the right direction. However, this is only a drop in the ocean of what is needed to tackle the hikes in supply chain costs that is putting off investors and leading developers to abandon their previous plans, such as Hornsea 4.

“More needs to be done to train and upskill workers so creating incentives, such as a bonus scheme, to support skilled clean energy jobs could encourage workers back who left the profession in Covid or help retrain skilled oil and gas professionals to transfer into clean energy to support our net zero ambitions. Similarly, incentives for apprenticeships in at risk or poorly subscribed roles within the clean energy sector could help unlock skills gaps across the industry.

“It is interesting to note the creation of GB Energy – Nuclear, in addition to GB Energy. Introducing a defined remit underpins the increase in favour for nuclear and somewhat dilutes the focus on renewables. 

“What is lacking from the strategy is any mention of tax incentives that could act as a key stimulus for change. Introducing favourable tax incentives would encourage investment and help to give the UK a competitive edge and stem the flow of capital migrating overseas.”