Post-election and post-budget, publication of the 40th edition of this survey provides a valuable opportunity to take stock of the industry and the state of the energy transition.
The results underline the issues facing us all. Now more than ever, there is a need for a concerted push to accelerate and deliver the opportunities presented by the net zero shift. We need to face these issues head-on: Industry confidence is at its lowest point since this series began more than 20 years ago. In the UK, fiscal uncertainty has been the primary driver, in contrast to other parts of the world where traditional market forces have dictated the industry’s health.
Our focus now must be on accelerating the pace of transition to deliver the opportunities at scale which this world-class supply chain needs. This requires leadership from both industry and Governments to pursue this path, examining the shift to net zero and protecting jobs in the process as we take the bold steps required to deliver the transition.
Positively, and despite these headwinds, this survey reflects members’ confidence in Aberdeen and this region’s resilience in becoming a global renewable energy hub and its role pioneering these efforts for the rest of the UK. That’s a view I am in wholehearted agreement with and there are positive signs with early, catalysing investments being made here in recent months.
Since publication of the last survey, we’ve seen confirmation of GB Energy being headquartered in Aberdeen, with its chair engaging with ETZ Ltd and other key stakeholders on the shape and function of the company. I welcome news in the Budget last week of the first £125million of capitalisation phase for its set up. The Chancellor also confirmed the continuance of the Investment Zone programmes following the North of Scotland’s selection under the previous government in 2023, a driving force for delivering the equipment, skills and expertise required for net zero opportunities right here in this region.
Meanwhile, we’ve had confirmation that the strategic and operational base for Green Volt, who are on track to deliver Europe’s first commercial-scale floating wind farm, will be based in the Granite City. Since the start of the year, the world’s first dedicated hub for floating offshore wind - the Floating Wind Innovation Centre (FLOWIC) - opened within the Energy Transition Zone.
At ETZ Ltd, we’ve recently started early work on our Energy Incubator and Scale Up Hub, to become the flagship of our Innovation Campus with advanced manufacturing capabilities and an entrepreneurial ecosystem for firms seeking to advance the transition.
Meanwhile, more than 700 fully-funded places on 38 academic courses have been made available to North-east residents through our National Energy Skills Accelerator (NESA) initiative with Robert Gordon University, the University of Aberdeen, NESCol and Skills Development Scotland. Design work is also underway on Scotland’s state-of-the-art first dedicated Energy Transition Skills Hub, to help 1,000 people into energy-transition focused jobs over the first five years in a collaboration supported by the Scottish and UK Governments, Shell UK and NESCol.
These are foundational steps to delivering the bright future for this region in which respondents have voiced their confidence.
Many of the findings of this survey touch on our work, from skills to ESG strategy to funding challenges. Encouragingly, there is a general upward trend in organisations developing structured ESG strategies. However, the results tell us that funding opportunities remain a challenging landscape for the industry to navigate. We at ETZ Ltd are here to help, with our range of experts and opportunities to aid the transition. Since 2022, our Energy Transition Challenge Fund has delivered grants to dozens of companies and unlocked more than £14million of investment.
What’s more, on the policy side in recent days, we’ve seen evidence of coordination between the Scottish and UK Government working together through new regulations to cut down planning time for renewables and grid projects in Scotland. That spirit of cooperation between Westminster and Holyrood is going to be vital in our bid to deliver opportunities at the scale required.
No one is underestimating the challenge ahead, but there also lies strong opportunity. ETZ Ltd is committed to addressing the issues raised in this survey to continue to realise the pivotal role North-east Scotland has to play in the UK’s drive to net zero.