According to a new report, the UK’s energy bottlenecks are holding back a £78 billion-per-year opportunity, accessible by 2030.
The report by McKinsey has identified six value pools to be available, which are currently held at bay by unaffordable energy, lack of reliability and inefficient planning to operation pipelines.
They say the £78 billion would be split across the following (in descending monetary value order): equipment, engineering and construction, renewables, grid, gas, behind the meter, off grid and flexibility.
McKinsey claim that solving the bottlenecks could lower the system costs that feed into household and industry bills – simply by creating faster grid delivery.
Emma Parry, Partner at McKinsey, said: “Britain’s clean and affordable power challenge is no longer just about ambition, it’s about delivery.
“The companies that can build infrastructure faster, make better use of existing capacity and remove the bottlenecks driving up costs stand to capture a significant share of a £78 billion-a-year commercial opportunity. The prize isn’t just growth for energy businesses, but a more affordable, reliable power system for Britain.”
The report ultimately calls for industralised delivery, making systems and asset capacity more productive and innovation of commercial models, not just technology.
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