Aggreko: Energy Transition Depends on Strong Supply Chains

The strength and resilience of industry supply chains are fundamental to the success of the UK’s energy transition, according to Aggreko.

In its recent research report titled Rebalancing the Energy Transition, the company identifies the supply chain as the primary risk to reaching energy transition targets, followed by insufficient investment and limited technology access.

The report advocates for increased collaboration between businesses to mitigate these risks and improve the industry's access to funds and advanced technology.

“High energy costs and fluctuating energy security and resilience has continued to be a challenge for businesses," says Alan Dunne, UK and Ireland Managing Director at Aggreko.

"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.”

This concern over supply chain challenges coincides with the UK Government's reaffirmed dedication to renewable energy production and infrastructure enhancement, demonstrated by the launch of the Clean Power 2030 initiative.

The programme aims to remove obstacles and hasten the progress of energy projects, including a recent proposal to shift the approval authority for onshore wind projects exceeding 100MW from local authorities to government ministers.

“With continued uncertainty around energy cost and resilience, businesses in the UK are facing the challenge of balancing profitability and sustainability," Alan continues. 

"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."

How ambition is driving the energy transition

The successful implementation of renewable energy production and transmission infrastructure, along with business-level energy transitions throughout the UK, requires innovative approaches within the energy supply chain.

The desire for such innovation is strong, with Aggreko’s report highlighting a robust ambition towards the energy transition among UK energy-intensive businesses.

A notable 80% of UK CEOs plan to heighten investments in this area over the next year.

While 90% of UK leaders recognise the need to adjust timelines for energy transition targets, the UK boasts the highest proportion of CEOs (52%) among surveyed countries who have merely modified short-term goals while maintaining their commitment to achieving net zero targets.

Aligning business initiatives with government targets is pivotal, and Aggreko stresses the importance of supply chain collaboration to ensure the energy transition's success.

The power of Energising Change

As the UK continues to ramp up renewable energy production and infrastructure, the report underscores the intricacies of aligning commercial goals with ESG objectives in energy procurement.

A key strategy involves deep collaboration within the energy supply chain to examine requirements and tackle challenges effectively, selecting practical solutions that ensure efficiency and environmental benefits.

Aggreko’s sustainability initiative, Energising Change, supports this approach by offering advanced, efficient technologies through its Greener Upgrades portfolio.

These technologies include battery energy storage systems and Stage V generators, specifically tailored to boost sustainability while addressing the dynamic needs of the energy transition.

“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," Alan says.

"While reliable energy supply and stable costs remain in the balance for the UK, working with expert energy supply partners can provide businesses with this to provide resilience and cost efficiency throughout the energy transition.”

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