Clean power “relies on supply chain collaboration”
The success of the UK’s energy transition will rely on collaboration between businesses to maintain a robust supply chain, global energy specialist Aggreko has warned.
The finding from its latest report Rebalancing the Energy Transition claimed that CEOs in the UK cite supply chain main risk to the energy transition, followed by lack of investment and access to technology.
Concern over the impact of supply chain comes as the UK Government has reaffirmed its commitment to renewable energy production and infrastructure through the establishment of Clean Power 2030. The new initiative is aimed at overcoming barriers and accelerate progress on energy projects, including plans for government to approve onshore wind projects over 100MW.
The research also discovered that ambition from energy intensive businesses for the transition was strong, with 8 in 10 CEOs stating firms will increase investment this year.
Although 9 in 10 said they had adjusted energy transition timescales, the UK still had the highest proportion of CEOs (52%) would said they had only adjusted short term goals and were still on track for net zero targets. As a result, Aggreko has highlighted the supply chain must collaborate to ensure a successful transition.
Challenges were also highlighted around striking the right balance between commercial and ESG ambitions with energy procurement in its research. A key part was working closely in the energy supply chain to assess requirements and challenges to choose the most practical solution to deliver efficiency and environmental benefits.
Alan Dunne, UK and Ireland Managing Director at Aggreko, said:
“With continued uncertainty around energy cost and resilience, businesses in the UK are facing the challenge of balancing profitability and sustainability. Much like the government and its Clean Energy 2030, UK businesses remain ambitious in making their energy transitions. However, our research has found that barriers and challenges still remain, even though the ambition to fund the energy transition is there.
“High energy costs and fluctuating energy security and resilience has continued to be a challenge for businesses, however, supply chain issues are clearly the biggest risk posed to energy transitions in the eyes of leaders. To overcome all of these challenges at once, it is imperative that businesses engage with expert partners across the supply chain to identify practical ways to reach ESG goals while keeping operations efficient and profitable.”
“Making a success of the energy transition relies heavily on businesses having the right technologies and solutions for their requirements, along with the expertise to implement it correctly.”
Image courtesy of Aggreko
