The UK needs to increase the delivery of renewable technology to hit 2030 targets amid concerns over supply chain.

Current capacity is not enough to meet targets, with heat pump uptake needing to jump by 16 times its current delivery rates to hit 2030 targets and the UK 11 years away from having a complete smart metering system to support a smart flexible energy system in the UK.

Levels of delivery are not able to meet net-zero targets, and whilst there is an opportunity to capitalise on renewable technology, manufacturers are leaving the UK market due to slowdown in smart meter deployment and innovators operating in heat electrification are struggling to commercialise at scale due to slow progress with policy support and uncertainty over the construction sector outlook.

BEAMA, the trade body for energy infrastructure and systems, has launched its first Market Pulse quarterly report to kickstart its #AcceleratingElectrification campaign. The new analysis reveals that while the supply chain is poised to deliver the significant increase in demand for low carbon heating and electric vehicles, investment intensions are still significantly lower than 12 months ago and fall short of the UK’s electrification needs.

Manufacturing unit costs have hit a four-year low with energy, shipping and labour costs having a greater impact than materials, underscoring that now is a prime moment to invest in UK manufacturing, but issues of finance and skilled recruitment mean that without action, any lead will be lost.

Yselkla Farmer, BEAMA CEO, said: “The UK is clearly back in the global race for net-zero delivery, and with a series of imminent policies that will accelerate electrification across power, heating and transport there are reasons for optimism. However, a gap continues to grow between the projected energy sector investment needed to meet our targets and the current rate of deployment.”

Whilst there have been significant delays, there is a huge global opportunity to position the UK as the global Net Zero workshop. Market Pulse data reveals that business optimism has bounced back to above the five-year average in 2024. In the last month alone, BEAMA members have committed to investing in the UK, with Schneider Electric investing £42m in a new manufacturing site, bringing 200 green jobs to North Yorkshire and Wilson Power Solutions has been acquiring sites in the UK for further factory expansion.

BEAMA’s surveys show that the industry intends to invest, but that the extent of this is not yet transformational, or aligned with projected demand, capacity is not being maximised and optimism remains cautious. Concerted measures to accelerate electrification still have time to make significant improvements before 2030, but only if the current trajectory improves.

BEAMA has also formed the Electricity Products Supply Chain Council, a body made up of all key industry organisations, focused on improving investment and delivery conditions for boosting the net-zero economy.

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