Aggreko: Energy Transition Hinges on Supply Chain Strength

The UK's energy transition hinges largely on the durability and effectiveness of industry supply chains, Aggreko says.
Its Rebalancing the Energy Transition report underscores the perception of UK CEOs who view supply chain vulnerabilities as the most significant risk to meeting their energy transition objectives.
Insufficient investment and limited technological access also pose substantial threats.
This report advocates for enhanced cooperation among businesses to mitigate these risks, thereby facilitating improved access to both funding and innovative 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 emphasis on the need for robust supply chains coincides with the UK government's reaffirmed commitment to boosting renewable energy production and infrastructure development through its Clean Power 2030 initiative.
This programme aims to simplify processes and expedite advancements in energy projects.
A notable proposal includes transitioning the oversight for approving 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."
The UK energy transition: Driven by aspiration
For the successful implementation of renewable energy facilities and infrastructure, as well as business-level transitions, innovative strategies within the energy supply chain are imperative.
Aggreko's study reveals a strong desire for energy transition among UK energy-intensive companies, with eight out of 10 UK CEOs planning to elevate investments in this domain over the following year.
Although a majority of UK participants admit to adjusting their energy transition timelines, 52% of these modify only their short-term objectives, maintaining steadfast commitment to long-term net-zero targets.
This alignment between business aspirations and government objectives underscores the need for collaborative efforts in securing a successful energy transition, notes Aggreko.
Energising Change
As enhancements in renewable energy generation and infrastructure development progress, balancing commercial goals with ESG criteria remains a significant challenge in energy procurement.
A critical element of addressing this challenge effectively is fostering close collaborations within the energy supply chain.
This involves assessing requirements thoroughly and selecting practical solutions that optimise both efficiency and sustainability.
Aggreko's sustainability initiative, Energising Change, reflects this approach by offering cutting-edge, efficient technologies via its Greener Upgrades portfolio.
Featured technologies include battery energy storage systems and Stage V generators, optimally designed to boost sustainability while catering to evolving energy transition needs.
“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 concludes.
"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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