A survey commissioned by Mott MacDonald, the engineering consultancy, in partnership with Energy Live News explored the measures that businesses believe are necessary to stimulate growth.
The respondents included manufacturers, ports, airports, transport firms, water companies, local authorities and others with energy bills from £100,000 to £100m+ a year.
Alternative fuels and grid connections highlighted
64% of participants wanted to see more support for the deployment of low carbon fuels, such as hydrogen and sustainable aviation fuel. This reflects that while companies see the benefits of sustainable fuels, the private sector alone is unable to deliver the infrastructure to make the transition viable.
Meanwhile, over half of respondents (59%) said they wanted to see speedier grid connections for large energy users, with essential sectors being fast tracked. Currently companies can wait years to get connected, hindering growth and employment as well as wider decarbonisation efforts.
Energy pricing concerns
Most respondents (71%) expect energy prices to rise over the course of the next five years. While many were in favour of measures that helped large consumers with their bills, there was no consensus on what type of support would work best.
An across-the-board business price cap was favoured by 29% of respondents, with the same proportion supporting sector-specific exemptions and measures; locational electricity pricing was less popular (13%).
With recently announced statistics showing that UK electricity prices are already the highest in the developed world, some respondents commented that marginal electricity pricing should be reformed to gain the benefit of cheaper renewables.
Helping themselves
Asked which measures companies are taking or considering themselves to reduce energy price impact, 82% said energy efficiency in buildings, 63% on-site generation and storage and 39% digital energy management solutions.
“Large energy users are taking matters into their own hands, deploying micro-grids and on-site solutions in the absence of policy to deliver lower prices,” says Rosa Rotko, energy transformation specialist at Mott MacDonald. “If the government is serious about supporting green growth, then our survey shows that infrastructure for alternative fuels and faster grid connections for essential users ought to be priorities.”
Overall, respondents feel positive about the energy transition. An overwhelming 86% agreed or strongly agreed that the energy transition would benefit their sector, with 82% agreeing that it would benefit their business specifically. Nevertheless, the majority (72%) said it was difficult or very difficult to attract investment for energy transformation and net zero projects in the current market environment.
The results of the survey, including any measures announced in the Budget, will be discussed further in a podcast hosted by Energy Live News in November.
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