Grid capacity and network readiness are among the biggest obstacles facing the UK's energy transition, according to new research that suggests the challenge is no longer attracting investment, but turning ambition into deliverable projects
A survey by Jacobs found that 59% of UK energy leaders rank grid or network readiness among their top barriers to delivering energy infrastructure, the highest proportion of any country surveyed.
The Energy Readiness Equation report, published by Jacobs and based on a survey of 600 energy-sector decision makers across the UK, US, Germany, Singapore and Australia, points to a wider delivery challenge. While 69% of UK. energy leaders believe sufficient capital is available, only 31% say there are enough investable projects.
Policy and regulatory uncertainty is another major constraint. Seven out of 10 UK respondents rank it among the top three barriers to investment readiness, while 66% identify permitting or land constraints.
The challenge extends beyond the energy sector itself. More than half (57%) of respondents said the readiness of other infrastructure systems, such as transport, utilities and supply chains, creates major constraints on delivering new energy projects.
According to Jacobs, the UK has made important progress in setting out a clearer vision for its future energy system through initiatives such as Clean Power 2030, grid connection reforms and the National Energy System Operator's developing spatial planning framework.
However, Jacobs’ global low carbon solutions director Alan Fotheringham warned that plans must now be translated into projects on the ground.
“The investment appetite and engineering capability are there. What developers need now is greater certainty around grid connections, permitting and the regulatory framework so they can commit capital and resources with confidence.
“Planning, regulation, networks and supply chains must move together. If the UK can turn its stronger strategic direction into faster, more predictable delivery, it will be better placed to attract investment, strengthen energy security and support long-term economic growth.”
The UK is not alone in facing delivery challenges, but the research highlights how different markets are grappling with different constraints. While permitting dominates concerns in the US, Germany is wrestling with supply chain pressures and project delays. Meanwhile, Australia and Singapore both point to wider infrastructure readiness as a growing challenge.
Click to read The Energy Readiness Equation report.
