Following the publication of the Government’s Industrial Strategy Green Paper consultation, BEAMA – the trade association representing manufacturers of electrical products spearheading the drive to electrification – has launched its comprehensive Industrial Strategy white paper. It highlights practical, coherent solutions to make Clean Power 2030 possible and capitalise on a £1 trillion global industrial growth opportunity.
The BEAMA Industrial Strategy whitepaper is built upon input from members, including leading multinational manufacturers, through to homegrown UK businesses, start-ups and innovators. These companies are the critical supply chain for the delivery of clean power and recognise an urgent need to grow capacity for key energy sub-sectors; particularly transmission and distribution, heat and hot water electrification and smart systems incorporating metering and in-home displays.
While each of these businesses has a unique perspective and priorities, each spotlighted two common themes delaying growth across our industry:
1. Product demand – Repeated changes to UK decarbonisation policy, targets and roadmaps have injected unnecessary uncertainty into demand for low carbon technologies. These require urgent correction through clearer market signals, such as levelling the playing field between electricity and gas prices to incentivise.
2. Addressing barriers to UK business growth – As was spotlighted at this week’s CBI conference, the UK remains an unattractive destination to do business, with a shortage of skilled workers, barriers to investment and construction of new manufacturing facilities, and challenging trade barriers.
Cognisant that the UK Government is acutely aware of many of these challenges, BEAMA’s Industrial Strategy whitepaper provides practical, coherent solutions for policymakers, accelerating progress towards sustainable economic growth, driven by low carbon industry.
The net zero supply chain will be key to delivering Labour’s Sustainable Growth Mission as it straddles both Advanced Manufacturing and Clean Tech, two of the eight “growth driving sectors” identified by the Government Industrial Strategy Green Paper.
Currently contributing over £14 billion to the UK economy every year, including £5 billion in exports, the electrical products supply chain has already been identified as having the highest growth potentials of any UK economic sector.
The global market for low carbon technologies is already valued at over £1 trillion. However, the UK risks falling behind the global race for low carbon growth if it maintains unnecessary barriers to industry. Having seen a modest uptick for Q2, BEAMA data taken from its Market Pulse research report reveals 12-month investment intentions stalled in Q3, which were likely influenced by the result of increased uncertainty following the General Election and lead-up to the government Budget announcements.
BEAMA members have highlighted key delivery indicators where the UK is falling behind:
1. Network investment is suffering from a lack of strong and visible demand which is impacting on investment intentions. Government and Ofgem need to inject network investment for growth through ED2 reopeners and ED3 uplift, recognising that network reinforcement, flexibility and losses reduction are all essential.
2. Heat electrification is far too low due to the Government’s prohibitively narrow technology focus and electricity pricing. Accelerate the disconnection of electricity and gas wholesale prices and level the tax playing field with VAT relief and subsidy framework for all decarbonised heat technologies.
3. Incomplete smart metering rollout delaying wider decarbonisation of UK economy and hindering the shift towards flexibility and consumer empowerment. Suppliers need to be mandated to complete the smart metering roll out at pace as well as the replacement of non-functional meters.
4. EV infrastructure development is faltering and behind the curve of where it needs to be. End uncertainty on ICE vehicle ban, reconfirming 2030 target and rejecting calls for unnecessary flexibilities in current mandate. Remove planning barriers to EV to address range anxiety. Address pricing clarity and ease of payment to build consumer confidence in accessible, affordable green transport.
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