The UK energy transition promises a more resilient, independent, carbon neutral, and prosperous UK. It requires significant energy transition finance, much of which needs to come from the private sector. Pressures on energy billpayers and UK industrial and AI competitiveness also mean that providing an attractive private investment landscape remains an urgent priority.
For the second year, we surveyed a large cross-section of the energy transition finance, representing at least £9 trillion in assets under management, on their confidence to invest in low carbon energy technology and infrastructure in the UK.
UK energy transition investors remain positive about the transition: nearly all (93%) agree it is ‘more of an opportunity than a challenge’ but there are three main challenges to address to increase energy transition investment.
Faster policy delivery
Four-fifths (80%) said they need faster policy delivery, and more than three quarters (77%) highlighted faster planning and permitting in particular.
Enhanced grid infrastructure
70% said an expanded and more modern electricity grid is a key enabler. Specifically, they said optimisers, grid-balancing services, data and technology solutions, and hardware manufacturing are the key areas where policy support is needed to enable investment.
Clarity on risk and cashflow
90% identified clear visibility of risk, or predictable cashflows, or both, as key characteristics of an attractive business opportunity. 68% said creating a positive outcome for clients is a top five driver for energy transition finance.