An alliance of energy industry institutions and manufacturing supply chains have come together to explain how the energy transition will contribute to growth across the UK.
Led by the Energy Networks Association (ENA) with the British Electrotechnical and Allied Manufacturers' Association (BEAMA) and backed by the National Grid and the other electricity transmission and distribution companies, the group has published the Electricity Networks Sector Growth Plan an ambitious analytical assessment about how investment in the electricity network will contribute to promoting prosperity and opportunity across the wider economy.
Following consultations with government and the regulator,, Ofgem, the plan amounts to an ambitious statement of intent to ensure growth is delivered across the GB nations and regions.
It will be overseen by a new Electricity Networks Growth Partnership, providing the leadership, coordination, accountability and transparency — monitoring progress and refreshing the Plan as policy and investment priorities evolve.
The key objectives are to:
· underwrite £181 billion of investment in regulated networks by 2035, renewing ageing infrastructure and building new network capacity - ensuring the electricity networks remain fit for purpose.
· ensure up to 72p of every £1 invested circulating in UK communities through manufacturing and jobs, builds maintains and operates a growing network.
· target opportunities to build on existing and develop new UK industrial strengths, boosting the UK’s share of value and creating a launchpad for opportunities to gain share in a growing international market.
· create an export strategy, backed by export finance and trade promotion, can help the UK-based supply chain succeed in the $21 trillion global market as countries around the world invest in their networks.
· guarantee every UK region benefits from the economic activity associated with developing the electricity networks, with £58bn of cumulative value flowing through local economies across Great Britain.
· deliver 128,000 jobs and 6,000 apprenticeships by 2035, together with a new digital shop window for the sector, showcasing job, graduate and training opportunities to attract career switchers and new entrants.
Growth Generators (from left) Lawrence Slade, Phil Dingle, Energy Minister Michael Shanks, Cordi O’Hara and Yselkla Farmer.
Lawrence Slade, Chief Executive, ENA, said:
“Network Operators are working hard to deliver a once in a generation transformation of the grid to enable the connection of more clean, secure and affordable energy, powering new industries and unlocking new development across the UK. Our Sector Growth Plan describes how this transformation will bring direct, tangible benefits that will transform lives in communities around the country – including supporting 210 000 high-quality, well-paid jobs across network operation, manufacturing, engineering, construction, and the wider supply chain.”
Yselkla Farmer, Chief Executive, BEAMA, added:
“Upgrading Britain’s grid is one of the biggest infrastructure programmes of our time. The Sector Growth Plan sets out how we will deliver it, giving manufacturers and service providers confidence to invest in people and places. The removal of uncertainties isn’t just helpful to the industry, it’s helpful for UK growth.
After all, every new pylon and substation built over the next decade is a potential order for a factory, and jobs in local communities which will give us the electricity we need to power our industries and economy.”
Cordi O’Hara, Co-Chair of the Electricity Networks Sector Growth Plan and President, National Grid UK, commented:
“We’re upgrading the grid to strengthen energy security and connect homegrown energy to power homes and businesses, but it’s also a once in a generation opportunity to drive growth across the country, strengthening UK manufacturing and supply chains, attracting investment and creating good jobs.
Capturing that opportunity will take all of us. Long-term visibility, early commitment and genuine partnership can give businesses the confidence to invest and grow. This plan is about coming together as an industry to make sure the investment in our networks delivers lasting economic value for every corner of Britain.”
Phil Dingle, Co-Chair of the Electricity Networks Sector Growth Plan and Director, Future Networks, Lucy Electric, stated:
“The UK needs to be where manufacturers choose to build their next factory. Production worldwide is stretched to meet demand for grid equipment, and the technologies we have pioneered here give us a strong platform for growth.
The UK supply chain is already creating jobs and investing in new manufacturing facilities.
But companies need clear sight of future demand before they commit. The Sector Growth plan has identified actions, which will be delivered through the Growth Partnership, creating the foundations for investment in capacity and skills.”
Akshay Kaul, Director General for Infrastructure at Ofgem, concluded:
“Ofgem welcomes the Sector Growth Plan and the collaborative effort behind it.
The focus now must be on turning that ambition into delivery. With government, industry and the regulator working together, there is a real opportunity to maximise the benefits of investment in Britain’s electricity networks.
Ofgem will play its part in helping ensure that investment delivers lasting value for consumers while supporting jobs and economic growth across the country.”