Infrastructure is key to the success of the Government’s recently announced 10-point plan for a green industrial revolution. Whether or not the UK can put in place that infrastructure by the proposed 2030 target is debatable.

The investment and appetite to deliver what’s needed to meet our net zero targets are there but the current regulatory framework is all too often a hindrance to enabling innovative projects to proceed as quickly as they need to.

Take power generated by renewables, for example. Currently at both a transmission and distribution level, the grid infrastructure is not able to support the demands being placed upon it by the growing renewables sector.

This issue will have two major impacts on projects. The first is potential delays to the deployment of new projects as a result of delayed infrastructure upgrades and the second is the possible operational constraint put on projects at periods of low demand. This immediately puts pressure on the Government’s pledge that there will be enough off-shore wind energy generated to power every home in the UK.

On a more positive note, however, enabling legislation such as the Development Consent Order process is being used to good effect to deliver an increasing number of nationally significant infrastructure projects (NSIPs) in England and Wales.

It is this type of centrally managed regulation that could be effective in enabling all parts of the infrastructure jigsaw to be put in place if the delivery of the UK’s green industrial revolution is to be much more than ambitious rhetoric.

Currently too many projects which could help deliver this ambition are caught up in long-term planning and or an appraisal of today’s cost without factoring in the benefit that project will deliver in say 10 or 15 years' time.

Perhaps it is time for an independent regulator of regulators with the mandate to oversee the delivery of the 10-point plan. Providing a facilitator when projects are held up by myopic departmental scrutiny or misaligned objectives to increase investor certainty could bring about the whole system changes that are embodied in the government’s ambitious targets.

Yes, the long-term benefit of achieving net zero is going to come at a cost today, but it has to be a price worth paying to safeguard our future.

Further information

Contact Nick Green

Contact Savills Energy & Infrastructure