COMPLEXITIES OF UK ENERGY PROCUREMENT

,

 

Chris Goggin observes how the UK procures its energy and the complexity in which it is then distributed and reacquired. As the UK progresses towards NetZero Rinnai looks to assist the industry in understanding what roles specific energies will fulfill and what approach the UK utilizes towards both the national and international energy markets.  

 

UK domestic energy procurement and distribution is a complex process that is reliant on a number of separate countries, huge commercial enterprises and separate forms of energy. The UK currently imports and cultivates energy from a tangled mass of outlets and prime suppliers. For example, we have electricity from interconnectors held by Belgium, Denmark and The Netherlands, LPG from America as well as the extraction of Norwegian North Sea natural gas and oil.

 

UK Electrical power company Drax has recently issued a statement on its website stating in their headline:

“UK Spends £250 million each month Importing Record Volumes of Electricity from Europe.”

This means that 20% of the UK’s monthly electrical energy requirements are wholly reliant on outside influence.

 

Extensive outside ownership heavily contributes towards meeting the UK’s power demand: one of the UK’s largest energy suppliers is Scottish power who distribute gas and electricity to over 5 million private households and commercial premises. Scottish Power is a subsidiary of global Spanish energy company Iberdrola.

 

State owned French electrical company EDF accounts for 18.5% of total UK market share in wholesale electrical generation. In 2023 EDF’s nuclear facilities provided around 13% of the UK’s total power demand. EDF supply energy to over 5 million UK customers.

 

Additional layers of complexity within the UK energy market become prevalent once scrutinised. Not all oil and gas extracted from UK North Sea territory is owned by UK companies but by private foreign investors. For example, the Rosebank oil field is owned by Norwegian state enterprise – Equinor. Norwegian gas reserves were responsible for satisfying 58% of the UK’s gas demand during 2023.

 

Online non-partisan energy news outlet, Energy Monitor released a story in January 2024 stating that at least 40% of oil and gas licenses in the UK North Sea oil and gas fields were passed on to foreign investors.

 

Any profits earned by the investors do not enrich the UK treasury nor do investors have to follow NetZero guidelines; and any energy extracted from UK territory can be immediately sold on the open market to any bidder – NOT direct to the UK.

 

So, energy extracted in the UK by foreign investors is occasionally purchased by the UK government from the international market. To add further confusion to this scenario, UK companies that also acquire gas from home waters export 46% of their product to other countries. UK Domestic demand is ignored in favour of making bigger profits from the international energy market by UK companies.

 

International geopolitics heavily influences global energy prices and distribution routes as well as highlighting the commercially driven nature of the global energy market. The Ukrainian / Russian war exposed Shell for buying Soviet gas at cheap prices despite their being international financial sanctions placed on Russia. Shell continues to work with Russia due to preset contractual agreements.

 

As the intricacies of the present international energy market are complex and confusing, the UK is moving towards clean renewables that are not subject to cost spikes nor interfering geopolitics that beset fossil fuels. In 2023 the UK energy mix consisted of 36.7% renewables. In 2024 that share has increased to 43.1%.

 

The current plan by the UK government is to increase naturally sourced energy extraction such as solar and wind power and to eventually cease fossil fuels. UK oil and gas usage has discernibly dropped over the last decade, in 2014 the UK’s energy mix included 58.1% of fossil fuels – in 2023 that number has dropped to 32.2%.

 

The UK government is particularly keen on introducing an age of cheap and clean electrical power and has very recently publicly released a document entitled:

“Clean Power 2030 Action plan: A New Era of Clean Electricity.”

This governmental report details the UK government’s ambition of fueling UK domiciles and commercial properties with green electricity at low cost.

 

This document also provides further objectives in adding clean power to the UK national grid. Renewables will increasingly play a huge role in the UK domestic energy mix; the UK government aims to increase overall and individual capacity of renewably sourced power. Offshore wind will be increased to 43 – 50GW, onshore wind will be expanded to 27-29GW, whilst solar power capacity will also be increased to 45 – 47GW.

 

A move towards renewables means that UK domestic energy security is strengthened whilst NetZero targets can be met whilst customer costs will lower in time. Modern energy extraction and distribution is a complex process driven by geopolitics and corporate commercial ambition. By expanding renewable capacity, the UK aims to reduce reliance on outside influences and to cease operating as a net importer of energy.

 

However, the UK approach to energy cultivation and distribution is heavily reliant on external players who do not necessarily have to abide by UK rules and regulations. Huge companies such as EDF and Scottish Power will have to follow instructions passed down by foreign organizations, a process that could harm the validity of domestic energy security and customer cost control.

 

Rinnai will continue to monitor global energy issues and deliver non-bipartisan news items that best represent the current machinations of the international energy market. Any change in legislation or market conditions that may affect product and energy options will be shared accordingly.

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON & DECARBONISATION

PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC &

OFF-GRID HEATING & HOT WATER DELIVERY

 

  • Rinnai’s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions.
  • Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.
  • Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
  • Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
  • Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s.
  • The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

 

CLICK HERE TO VISIT THE RINNAI WEBSITE

or HERE to EMAIL RINNAI

CLICK HERE For more information on the RINNAI product range

 

 

/0 Comments/by

Barnsley is ‘Open for Business’ with New Development Site

GREGORY GROUP COMPLETES PURCHASE OF 10 ACRE INDUSTRIAL DEVELOPMENT SITE IN ROCKINGHAM, BARNSLEY

 

Gregory Property Group, in conjunction with Commercial Development Projects Limited of Elland, has completed the purchase of a 10-acre development site at Junction 36 of the M1 at Dearne Valley Parkway, Rockingham from Barnsley Council.

 

Having obtained planning permission to develop the site, the plan is to deliver three units totalling approximately 125,000 sq. ft of new, high specification industrial accommodation.

 

The Otley-based developer has confirmed that, with work commencing before the end of February 2025, completion is expected by February 2026.  The contractor will be Marshall Construction Ltd.

 

The site is located a few hundred yards from J36 of the M1 just off the Dearne Valley Link Road and is included in the Hoyland North Masterplan framework.

 

John McGhee, Managing Director at Gregory Property Group, said:

 

“The site is a high profile and popular location for industrial occupiers because of its excellent transport links and local labour force.  The design which includes various tree, shrub and flower planting schemes to improve the biodiversity of the area will make this a very pleasant place to work, and we expect demand for the units to be high”.

 

Simon Marshall for Commercial Development Projects Limited said:

 

“We are pleased to be able to continue our excellent working relationship with Gregory’s and look forward to working together to deliver this exciting opportunity”.

 

Councillor Robin Franklin, Barnsley Council’s Cabinet spokesperson for Regeneration and Culture, added:

 

“We’re thrilled by this new development, which proves that Barnsley is open for business.

“It’s in an excellent location with great links to the M1 at Junction 36, and we’re excited to see how the land is developed for the new high-spec industrial units which will encourage business growth, provide new employment opportunities for our residents and boost our local economy.

“We wish Gregory Property Group every success as they continue their journey with us here in Barnsley.”

 

Barnsley Council was advised by Shoosmiths.  Kellie Hatton, who led the transaction, commented,

 

“his is a complex site which the council has worked hard on to realise value for Barnsley, so it really is a great achievement to know that the developer will be starting on site soon.”

 

 

/0 Comments/by

Backing Heathrow to Kickstart Growth

Government backs Heathrow expansion to kickstart economic growth

 

  • Plan could create over 100,000 direct jobs, boost a better-connected British economy by billions, and lead to cheaper fares and fewer delays for families as part of Plan for Change.
  • Expansion must be delivered in line with UK’s legal, environmental and climate obligations.

Working people and businesses across Britain will benefit from a government going “further and faster” to kickstart economic growth, as the Chancellor today [29 January] announced the government’s support for a third runway at Heathrow.

Speaking to an audience of business chiefs at Siemens in North Oxfordshire this morning, the Chancellor set out the government’s latest set of reforms to kickstart economic growth and drive up living standards across the UK by driving investment, getting Britain building and tackling regulatory barriers. This included the announcement that the government supports and is inviting proposals for a third runway at Heathrow.

The Chancellor confirmed that the government will move at speed to review the Airports National Policy Statement (ANPS). This provides the basis for decision making on granting development consent for a new runway at Heathrow, to ensure that any scheme is delivered in line with our legal, environmental and climate obligations.

In her speech, Chancellor of the Exchequer Rachel Reeves said:

I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change.

And now the case is stronger than ever because our reforms to the economy – like speeding up our planning system, and our strengthened plans to modernise UK airspace – mean the delivery of this project is set up for success.

So I can confirm today that this Government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer.

As well as creating over 100,000 jobs in the local area and many more indirectly, research published today by Frontier Economics finds that 60% of the economic boost from a third runway would be felt by areas outside of London and the South East – putting more money in the pockets of working people across the UK through lower fares and greater choice for passengers as part of our Plan for Change.

During the speech, Reeves announced that the Transport Secretary Heidi Alexander is expected to take decisions on expansion plans at Gatwick and Luton shortly, and that the government will work with Doncaster Council and the Mayor of South Yorkshire to support their efforts to reopen Doncaster Sheffield Airport as a thriving regional airport.

The Chancellor also announced that a new partnership between global logistics giant Prologis and East Midlands Airport to build a new advanced manufacturing park within the East Midlands Freeport zone to unlock £1 billion of investment and 2,000 jobs. It follows this government’s swift approval of similarly stalled plans for London City Airport to expand to nine million passengers per year by 2031 and a £1.1 billion investment at Stansted Airport to extend its terminal and create 5,000 jobs.

After delivering stability to the public finances and wider economy as the basic precondition for economic growth, the pace of investment and reform demonstrates the government’s willingness to secure the future of the UK’s world-class aviation sector and the sustainable growth it can provide. Air freight represented 57% of the UK’s non-EU exports by value in 2023, with over 60% of freight coming through the UK doing so through Heathrow. International connectivity also supports vital tourism and business links, with overseas visitors spending £31 billion on their visits to the UK in 2023 and 15 million business travellers using Heathrow in the same year.

It comes after reforms to speed up the planning system and a presumption to ‘back the builders over the blockers’ were set out by the Prime Minister Keir Starmer last week. The government has committed to making decisions on 150 major economic infrastructure applications over this Parliament, having already made decisions on multiple significant projects within its first six months spanning airports, data centres, energy farms, and major housing developments. The Planning and Infrastructure Bill to be introduced in Spring will enact further sweeping reforms and take an axe to the red tape that slows down approval of infrastructure projects.

Alongside these reforms and plans to modernise UK airspace, the government is taking great strides in transitioning to greener aviation. Sustainable Aviation Fuel reduces CO2 emissions compared to fossil jet fuel by around 70% and the Chancellor announced that the government is supporting UK producers by investing £63 million in 2025-26 into the Advanced Fuels Fund and setting out details of a Revenue Certainty Mechanism. This will support investment and high-skilled green jobs in plants across the UK – with previous winners of the Fund ranging from across the north of England to South Wales – and follows the Sustainable Aviation Fuel Mandate coming into law at the start of 2025. Taken together, our commitments to SAF will support thousands of jobs in places like Teesside and Humberside, bring down our transport emissions, and help make the UK a clean energy superpower as part of our Plan for Change.

The government is also assessing options for privately financing the Lower Thames Crossing, which will improve connectivity across vital ports and alleviate congestion as goods to be exported come from across the country to markets overseas.

In further recognition that the Government’s clean energy superpower mission is helping to drive the UK’s economic growth mission, Reeves announced that the government will designate new Marine Protected Areas to enable offshore wind, whilst protecting our marine environment. In doing so, barriers to 16 gigawatts of offshore wind will be unblocked – as much electricity as was produced by all gas power plants in 2024 – and up to £30 billion of private investment in homegrown clean power will be unlocked, creating thousands of good clean energy jobs in the offshore wind sector in areas like East Anglia and Yorkshire.

A new approach to the Oxford-Cambridge Growth Corridor – a centre of innovation which could become Europe’s answer to Silicon Valley – will be spearheaded by Sir Patrick Vallance as a Ministerial Champion. The economic potential of this region will be unlocked through leveraging the strengths it boasts in sectors across Britain’s new modern Industrial Strategy, from life sciences and tech to advanced manufacturing.

The Chancellor set out the government’s plans to increase investment across the whole of the UK. She stressed that the government would do more to support city regions and local leaders outside of London and the South East, in recognition that bringing the productivity of major cities like Manchester, Birmingham and Leeds to the national average would deliver an extra £33 billion in output for the UK economy.

Reeves confirmed the backing of the Mayor of Greater Manchester’s plans for the regeneration of the area around Old Trafford, including new housing and commercial development, and the new approach to planning decisions on land around stations, changing the default to yes. The Office for Investment is expanding its support to local leaders across the UK to help develop and promote their investment plans, and new strategic partnerships from the National Wealth Fund (NWF) will provide deeper, more focused support for city regions starting in Glasgow, West Yorkshire, the West Midlands, and Greater Manchester.

NWF and Aviva have today invested £65 million in Connected Kerb to back plans for the electric vehicle smart charging infrastructure company to expand its UK EV charging network towards 40,000 sockets – up from 9,000 as of the end of 2024. This substantial investment into the UK’s public charging infrastructure – one of the NWF’s priority sectors – is crucial for delivering the forecast requirement of at least 300,000 public EV chargers by 2030. NWF is also investing £28 million in Cornish Metals to provide the raw materials to be used in solar panels, wind turbines and electric vehicles, supporting growth and jobs in the South West of England.

Reeves announced that the Treasury will review the Green Book and how it is being used to provide objective, transparent advice on public investment across the country, including outside London and the South East. There were also further details announced on Investment Zones, with the Wrexham and Flintshire Investment Zone to focus on the area’s strengths in advanced manufacturing. Backed by the likes of Airbus and JCB, this is expected to crowd in £1 billion of private investment over a decade and create up to 6,000 jobs.

The Chancellor said that the Business and Trade Secretary Jonathan Reynolds will visit India next month to relaunch talks on a free-trade agreement and bilateral investment treaty, She set out that the guiding principle the government will take in its approach to trade is acting in the national interest of Britain’s economy, its businesses and working people. A trade deal with India, as one of the fastest growing economies in the world and one which is projected to be the fourth largest global importer by 2035, is in line with this approach.

 

Source: Gov.UK

/0 Comments/by

Clear Energy Strategy Necessary for UK Manufacturers

Manufacturers are still being hit with rising gas and electricity prices, and while the record highs of early 2022 have abated, many businesses are struggling to meet the cost of their energy needs. However, according to Make UK, one in five manufacturers has still not put a clear energy procurement strategy in place to protect them from the volatility in Britain’s energy market.

The organisation says that the industrial energy market does not have the protections afforded to domestic consumers through the price cap, so working without an energy strategy leaves companies catastrophically exposed to energy market disruption. The lack of a ‘fall back price’, like the domestic energy cap as protection, means that future charges for industry could theoretically be limitless. To further mitigate, the Government should also look at creating an industrial energy market regulator to protect businesses, particularly Britain’s SMEs from the impacts of poor behaviour on the part of energy companies.

The latest research published by Make UK in partnership with Inspired plc, Energy Procurement: The Cost of Complacency, shows that one in three manufacturers haven’t revised their energy procurement strategy since the energy crisis of 2022. While this still may be prudent for those on longer-term fixed contracts, the abatement of the crisis risks businesses putting their energy procurement strategy on the back burner, leaving them vulnerable to any potential subsequent crisis.

The UK imposes several energy-related taxes and levies (for example, the Climate Change Levy), which push up costs for industrial consumers further. Some European countries offset such levies for energy-intensive industries to maintain competitiveness and while the UK has introduced some levy exemption schemes to support the sector, Make UK says there is more to be done.

Furthermore, European countries like Germany and France provide more substantial subsidies or compensatory frameworks for industries exposed to high energy costs such as partial exemption for energy-intensive industries from certain grid fees or renewable energy surcharges. France also maintains tight control over energy pricing for industrial consumers through regulated tariffs tied to nuclear energy costs (for example ARENH in France).

 

‘Wild West’ of energy markets

James Brougham, a senior economist at Make UK, said: “Energy forms a huge part of UK manufacturers’ input mix, subsequently accounting for a large proportion of production costs. With differing playing fields for UK producers when compared to those abroad, even in our closest neighbours within Europe, it is little surprise that the sector struggles to remain competitive even when productivity enhancements elsewhere have been sought. Compounding the risk, the significant proportion of the sector that is exposed to what is effectively the ‘Wild West’ of energy markets in terms of regulation and support, without a formal strategy in place further highlights the need for intervention lest we see the UK’s production base continue to erode.”

Dan Hulme, head of sales (key accounts) at Inspired plc, added:

“While energy prices are much lower than they were during the peak of the energy crisis, they are still around twice the pre-pandemic average. This is not a time to be complacent. Given how sensitive the market remains, manufacturers need to review their strategies and ensure they are aligned with their goals and the behaviour of the energy markets. These strategies should be dynamic and regularly revisited to ensure they continue to achieve their goals and provide protection in an ever-changing market.”

Make UK concludes that the Government should also give stronger incentives for on-site energy generation alongside an industrial energy price cap. Equalising pricing to the Eurozone through a variable energy subsidy would also be hugely beneficial to drive industrial growth in the UK.

 

Source: Machinery Market

/0 Comments/by

27,000 historic planning applications could now be approved

27,000 historic planning applications could now be approved due to green belt to grey belt reclassification

 

The latest internal data release from Searchland, the development site sourcing specialists, has revealed that there are some 3,425 planning applications that were previously rejected due to being located on green belt land, green belt land that would now be classified as optimal grey belt under the government’s new guidelines.

 

Should these applications be looked at again and approved, it could help deliver over 27,000 new homes to the market.

 

Searchland’s internal data looked at planning applications submitted across England since 2010 and specifically those that were rejected due to being located on green belt land that now meets the gret belt criteria as set out in the new National Planning Policy Framework.

 

Previous data from Searchland revealed that there are an estimated 30,597 grey belt sites across England, enough to deliver 3.4m homes to the market if developed.

 

The firm’s latest figures have also shown that there have been 3,425 planning applications rejected since 2010 due to being located on green belt land, green belt land that may now be considered grey belt, as classified by the Labour Government.

 

Should these planning applications be revisited and granted approval, it could bring an estimated 27,197 new homes to the market, with an estimated market value of £12.2bn.

 

The South East is home to the highest proportion of rejected planning applications that could now be approved, accounting for 21% of the national total, with the potential for 9,001 new homes to be delivered with a market value of £4.8bn

 

19% of these rejected applications were found within the East of England with the potential to deliver 4,215 new homes.

 

The North West was also home to a considerable proportion at 16%, followed by London (12%), the West Midlands (10%) and Yorkshire and the Humber (10%).

 

To keep up to date on the latest grey belt developments sign up to Searchland’s Grey Belt Insights Newsletter.

 

Co-founder of Searchland, Hugh Gibbs, commented:

 

“With the grey belt now formally recognised by the National Planning Policy Framework, developers are benefitting from a significant increase in the number of opportunities available to them.

 

As our previous research found, the grey belt could potentially deliver 3.4m new homes to the market, but it’s not just current grey belt plots that need to be considered.

 

Since 2010, no less than 3,425 planning applications have been rejected due to the fact they were located in green belt land.

 

With the creation of the grey belt, the likelihood is that these applications are well worth revisiting as they could lead to the construction of thousands of new homes with a market value to the tune of £12.2bn.”

 

Data tables

/0 Comments/by

Overhauling the UK’s Infrastructure and Construction Landscape: A Legal Perspective

Charles Banner KC

In a landmark move to accelerate the delivery of major infrastructure projects, the UK government has approved significant reforms aimed at streamlining legal processes and reducing the delays that have hampered development. Spearheaded by the recommendations of the independent Banner Review, these changes promise a faster and more efficient implementation of significant infrastructure projects, aligning with the government’s Plan for Change to bolster economic growth and sustainable energy.

The Banner Review and Its Recommendations

The reforms are rooted in the findings of the Banner Review, led by Charles Banner KC. The review highlighted the detrimental impact of excessive use of judicial review on the timely delivery of infrastructure projects. Under current procedures, legal challenges often see projects dragged through the courts up to three times, prolonging delays and inflating costs. The review proposed a reduction in the number of judicial review attempts, particularly for cases deemed “totally without merit” and suggested other procedural amendments to expedite the process.

According to Charles Banner KC, “reducing the number of permission attempts to one for truly hopeless cases should weed out the worst offenders” and accelerate infrastructure delivery.

Government’s Commitment to Reform

The government has embraced these recommendations with a firm resolve. Speaking in support of the reforms, PM Starmer criticised the prevailing “challenge culture” whereby pressure groups and local opponents, colloquially referred to as “nimbys” (“Not In My Back Yard”), use legal avenues to obstruct crucial infrastructure developments. In a statement to The Times, Starmer reiterated his commitment to prioritising national prosperity over local opposition, thereby reshaping the legal landscape to favour growth and development.

Key Changes and Implications

The reforms introduce a critical shift in the judicial review process. The initial “paper permission” stage will be eliminated, and the scope for appeals in cases dismissed as “totally without merit” by a High Court judge will be curtailed. Additionally, league tables of court delays will be established to foster quicker judicial decisions. This is expected to reduce consenting times by six to twelve months, translating into substantial economic savings and efficiency gains.

Such changes are anticipated to expedite large projects such as nuclear plants, railways, and wind farms which will in turn lower long-term energy bills and improve transport efficiency.

Moreover, the government has introduced a Nature Restoration Fund, allowing developers to offset environmental impacts more efficiently, thus addressing ecological concerns while maintaining project momentum.

Industry Response

The response from industry leaders has been overwhelmingly positive. Executives from major firms, including ScottishPower, National Grid, and SSE, have lauded the reforms as a vital step towards unlocking investment and accelerating the transition to clean energy. This regulatory overhaul is seen as a catalyst for economic growth, sending a strong signal to global investors about the UK’s commitment to fostering a conducive environment for infrastructure and development.

Leo Quinn, Balfour Beatty Group Chief Executive stated that “Today’s announcement is a vital step towards kickstarting major infrastructure projects more swiftly, while keeping essential safeguards in place. Reducing the uncertainty that delays progress and drives up costs should help unlock significant economic benefits and enable faster delivery of the critical infrastructure that the UK urgently needs“.

Keith Anderson, CEO of ScottishPower also commented, saying that “We’ve consistently said we’ll increase our investment in the UK if the Government can enact meaningful reforms that speed up planning and unlock economic growth. We welcome today’s announcement as an important step forward, in line with our commitment to doubling our investment in UK electricity grids and renewable energy to £24bn by 2028“.

Conclusion

The UK government’s decision to implement the Banner Review’s recommendations marks a pivotal moment for the infrastructure and construction sectors. By reducing bureaucratic obstacles and expediting judicial processes, these reforms are set to transform the landscape, facilitating the swift delivery of projects that are crucial for the nation’s future prosperity. As these changes take effect, contractors and employers can anticipate a more predictable and streamlined path to project completion, heralding a new era of growth and development in the UK.

Source: Watson, Farley & Williams

/0 Comments/by

£400m fund to spur water sector transformation in next five years

photo credit: The Rivers Trust

Ofwat announces details of £400m fund to spur water sector transformation in next five years

 

  • The Ofwat Innovation Fund will increase to support ambitious and collaborative water innovation projects.
  • Since 2020, it has awarded funding to 93 projects involving 240 partners to expand the water sector’s ability to innovate and meet the evolving needs of customers, society and the environment.
  • Ofwat continues to push the water sector to innovate to continue improving services for customers, provide value and meet the high standards that the public demands.
  • The fund was recently highlighted by the Chancellor of the Exchequer as a promising vehicle for promoting economic growth.

 

Tuesday 28 January 2025: The Ofwat Innovation Fund will double to £400 million to support projects that could transform the water sector to meet and solve the many challenges it faces. 

 

Established in 2020, the original £200 million Ofwat Innovation Fund has been awarded to collaborative projects which see water companies working with promising innovators from across different sectors and around the world to develop and deploy solutions to the water sector’s biggest challenges. Today’s announcement will extend the fund for a further five years to 2030. 

 

The fund was highlighted by the Chancellor of the Exchequer following a meeting of UK regulators on 16 January as one of a number of promising ways in which regulators are supporting the Government’s plan for economic growth. Investment expenditure is set to quadruple over the next five years as part of a wider £104 billion plan for the sector. 

 

Helen Campbell, Senior Director for Sector Performance, Ofwat, said:  

 

“There’s no question that the water sector faces many urgent challenges – reaching net zero emissions, ending the overuse of storm overflows, preventing leaks, and adapting to the impact of climate change – all while ensuring customers are properly served and enabling economic growth. Our £400m commitment to continued investment in innovation will support highly collaborative projects to develop and deploy solutions to these enormous challenges. While the first five years championed nascent technologies and new approaches to demonstrate their future potential, the next five years must see them scale and deliver a lasting and beneficial impact for customers, society and the environment”.  

 

Through multiple competitions (four Water Breakthrough Challenges, the first Water Discovery Challenge – plus the pilot Innovation in Water Competition in 2020), the fund has so far supported 93 projects involving more than 240 partners, including water companies, universities, environmental charities, local governments, civil society organisations and other utilities. The fifth Water Breakthrough Challenge is underway and the winners will be announced in Spring 2025.  

 

Pipebots for Rising mains (University of Sheffield)

 

 

Previous winners have included robots that spot cracks from inside pipes, seagrass restoration projects, citizen science initiatives, partnerships to help communities adapt to increased rainfall and new ways to process sewage sludge to destroy forever chemicals. 

 

 

 

 

The funding for the next five years will see further annual Water Breakthrough Challenges, focused on innovative ideas from consortia led by water companies, and at least two more Water Discovery Challenges, seeking groundbreaking ideas to revolutionise the water sector from companies outside the industry. It will also introduce three new funding streams to support the implementation and scaling of successful innovations, solutions which require collaboration across the entire sector, and challenges across other sectors. 

 

The water sector must transform its environmental impact whilst encouraging growth, and innovation is crucial to end the overuse of storm overflows, cut greenhouse gas emissions and reduce leaks. It must innovate to continue improving services for customers, provide value and meet the high standards that the public demands. Collaboration is at the core of the innovation fund – it fosters new thinking and new approaches to develop effective solutions that are fit for the future. 

 

The Ofwat Innovation Fund will be delivered by innovation prize experts, Challenge Works (a Nesta enterprise), in collaboration with Arup and Isle Utilities.  

 

Natalie Wadley, CEO of ChangeMaker 3D, a partner in Water Breakthrough Challenge 3 winning project, Water Industry Printfrastructure, said:  

 

“The Ofwat funding has quite simply been game changing for both our company and the development of Printfrastructure as a positive impact for the UK water sector. The funding has unlocked new jobs for our business, five new products, a patented design and a significant opportunity to add value in the next five years. We are incredibly proud to work alongside all of the project partners, United Utilities, Scottish Water and Print City, in what has been the most trailblazing project to date. This project has truly delivered several UK firsts, pushed all of the technology boundaries and demonstrated how we can return tangible value to water customers.” 

 

Paul Lavender, UK Water Utilities Director at Royal HaskoningDHV, a partner in Water Breakthrough Challenge 4 winning project, Biopolymers in the Circular Economy, said:  

 

“As a technology provider, we highly value this centralised innovation funding approach for its role in supporting the development of large, impactful projects. We’ve witnessed strong collaboration among partners who share a unified vision to address major industry challenges, effectively bridging gaps across the supply chain. We’re excited about the next steps, as engagement with the water company project partners and widespread industry dissemination will help us to develop new opportunities.” 

 

Professor Ana Soares from Cranfield University, a leader and partner on multiple Ofwat Innovation Fund winning projects, including Water Discovery Challenge winner, Innovative Coagulant Free Phosphorus Removal Technology, said:  

 

“Having participated in three Ofwat Innovation Fund challenges, I have witnessed firsthand how the programme nurtures collaborative innovation, transformative projects addressing strategic challenges, and the introduction of fresh perspectives from new innovators. The programme is inclusive, supporting every stage from the conception of new ideas to their practical implementation. It supports ambitious projects that address long-term challenges such as climate change, resource efficiency, and resilience, while embracing inclusivity, leveraging leading-edge technologies and services, and ensuring tangible benefits for customers, communities, and the environment.” 

 

To find out more about the Ofwat Innovation Fund and its previous winners, visit waterinnovation.challenges.org 

/0 Comments/by

The Plan for Change – Government Sends Positive Message to Construction

  • Major infrastructure needed for growth and clean energy to no longer be held up in the courts, as government scraps excessive three attempts to challenge decisions in the courts

 

  • Households set to benefit from reduced energy bills in the long term and faster commutes through quicker construction of renewable energy and transport projects

 

  • Latest step to drive economic growth – the number one priority in the Plan for Change – sending positive message to business looking to build

 

Nuclear plants, trainlines and windfarms will be built quicker thanks to changes to the rules to stop blockers getting in the way of the government’s Plan for Change.

Current excessive rules mean unarguable cases can be brought back to the courts three times – causing years of delay and hundreds of millions of cost to projects that have been approved by democratically elected ministers, while also clogging up the courts.

Data shows that over half – 58% – of all decisions on major infrastructure were taken to court, getting in the way of the government’s central mission to grow the economy, and put more money in hardworking people’s pockets.

The government today confirms this will be overhauled, with just one attempt at legal challenge for cynical cases lodged purely to cause delay rather than three.

This approach will strike the right balance between ensuring ongoing access to justice and protections against genuine issues of propriety, while pushing back against a challenge culture where small pressure groups use the courts to obstruct decisions taken in the national interest.

On average, each legal challenge takes around a year and a half to be resolved – with many delayed for two years or more – and the courts have spent over 10,000 working days handling these cases. This is holding back working people and is getting in the way of our progress as a nation. Examples include:

  • East Anglia wind farms were delayed by a group which dragged the case through the courts and lost at every turn – delaying it for over two years.
  • Sizewell C, which was taken to court by a small group of activists, with the High Court dismissing it and describing aspects as “utterly hopeless” – despite this, work was left uncertain for two years and legal costs increased
  • The A47 National Highway Project, which is improving our roads, was dragged to court by a former Green Councillor – his case was eventually dismissed as having ‘no logical basis’, after delaying the project by two years.

These cases put a hold on people’s lives – harming our efforts to drive down energy bills with clean energy, getting in the way of road improvements which will help people get to work on time, strangling the dream of homeownership and – importantly – scaring away business from building in the UK.

It also wastes tax money, with major road projects paying up to £121 million per scheme being dragged through the courts.

These changes will send a strong signal to global firms looking to do business – that the UK is a great place to invest.

Prime Minister Keir Starmer said:

For too long, blockers have had the upper hand in legal challenges – using our court processes to frustrate growth.

We’re putting an end to this challenge culture by taking on the NIMBYs and a broken system that has slowed down our progress as a nation.

This is the government’s Plan for Change in action – taking the brakes off Britain by reforming the planning system so it is pro-growth and pro-infrastructure.

The current first attempt – known as the paper permission stage – will be scrapped. And primary legislation will be changed so that where a judge in an oral hearing at the High Court deems the case Totally Without Merit, it will not be possible to ask the Court of Appeal to reconsider. To ensure ongoing access to justice, a request to appeal second attempt will be allowed for other cases.

This announcement marks another victory for the builders over the blockers, with the government proving – with actions – that it is set on kickstarting growth and putting more money back in people’s pockets.

It follows a series of interventions from the Prime Minister – dating back to the State Opening of Parliament where he outlined plans to introduce the Planning and Infrastructure Bill to expedite the delivery of high-quality infrastructure.

Since then, the government is speeding up 150 major economic infrastructure projects, including railways and roads – doubling the record of the previous government, unlocking growth, and taking the brakes off Britain.

The government has also set out major reforms to end the block and delay to building homes and infrastructure from current environmental obligations.

A new Nature Restoration Fund would enable developers to meet their environmental obligations more quickly and with greater impact – accelerating the building of homes and improving the environment.

The new common-sense approach doesn’t allow newts or bats to be more important than the homes hardworking people need, or the roads and hospital this country needs.

Growth is the number one Mission of this government. That is why the Prime Minister’s Plan for Change is focused on boosting growth to put more money in working people’s pockets and improving living standards across the country.

Since the election, real wages have grown at the fastest rate in three years, worth an extra £20 a week after inflation, and the average two-year fixed mortgage rate is now about half a percentage point lower than it was at the election.

This government will not relent in its determination to deliver economic growth and fight for working people, which is why the Chancellor hosted regulators in No11 last week to discuss how they can support growth going forward. She will give a speech on economic growth next week to drive home this determination.

My review concluded that there is a clear case for streamlining judicial reviews on consenting decisions for nationally significant infrastructure projects, given that delays to these projects cause real detriment to the public interest.

In the course of my review, I saw broad consensus from claimants to scheme promoters that a quicker system of justice would be in their interests, provided that cases can still be tried fairly.

I am therefore pleased to see the government acting on the back of my review. In particular, reducing the number of permission attempts to one for truly hopeless cases should weed out the worst offenders, without risking inadvertent delays because judges choose to err on the side of caution.

I look forward to seeing these changes help to deliver a step change in the pace of infrastructure delivery in the months and years ahead.

Keith Anderson, CEO of ScottishPower, said:

We’ve consistently said we’ll increase our investment in the UK if the Government can enact meaningful reforms that speed up planning and unlock economic growth. We welcome today’s announcement as an important step forward, in line with our commitment to doubling our investment in UK electricity grids and renewable energy to £24 billion by 2028.

Connor Teskey, President of Brookfield Asset Management, said:

Planning reform is a key priority for our business in the UK. Whether it’s energy infrastructure, data centres or real estate, all of our investment strategies can be accelerated by a thoughtful and growth-oriented planning regime. We look forward to today’s proposals coming into effect and ultimately deploying more capital into this market.

Tom Glover, UK Country Chair of RWE said:

Climate change protection and low energy bills will only be achieved through the timely delivery of energy infrastructure. We therefore welcome the Government’s focus on streamlining the planning process to ensure nationally significant energy infrastructure cannot be frustrated by objections with no merit.

As a leading developer and investor in energy projects, RWE values close and meaningful consultation with host communities and these proposals, in addition to the establishment of the Nature Recovery Fund, will minimise unnecessary and costly delays to the delivery of energy projects that are the bedrock of economic growth.

John Pettigrew, CEO, National Grid, said:

We welcome plans to speed up the delivery of crucial infrastructure, which will help drive economic growth across the country. The government is right to streamline the planning process whilst ensuring that communities retain the right to shape proposals.

Leo Quinn, Balfour Beatty Group Chief Executive said:

Today’s announcement is a vital step towards kickstarting major infrastructure projects more swiftly, while keeping essential safeguards in place.

Reducing the uncertainty that delays progress and drives up costs should help unlock significant economic benefits and enable faster delivery of the critical infrastructure that the UK urgently needs.

This is a strong start and I look forward to seeing the full plans in the upcoming Planning and Infrastructure Bill.

Alistair Phillips-Davies CBE, Chief Executive of SSE plc, said:

We’re on the cusp of the greatest transformation since the Industrial Revolution as we rewire and rebuild our energy system to achieve clean power by 2030.

And in the form of the Government’s Clean Power Plan, we have a roadmap for getting there. A roadmap that will require around £40bn per year of private investment in clean electricity infrastructure that will in turn help drive economic growth as well as energy security.

But to reach that destination, we need courage and an unwavering focus on unlocking low-cost private investment in low-carbon energy infrastructure – and that starts with faster and more effective planning processes.

Too often, critical projects are caught up in unnecessarily drawn-out planning processes that help nobody. We therefore welcome the Government’s commitment to limit such delays and strike a better balance between scrutinising projects and getting them built at the speed the country needs.

Chris O’Shea, Group Chief Executive of Centrica said:

To reach the Government’s ambitious goals on clean power we need to get shovels in the ground, building green energy infrastructure as soon as possible. We are delighted at this bold move to demonstrate the UK is a great place to invest.

We continue to work with the Government to accelerate the strategically valuable vital projects that will power the UK and provide cleaner, more secure energy to drive the economic growth that Government and businesses like Centrica are working in partnership to deliver.

Charles Emond, President and Chief Executive Officer, CDPQ, said:

As one of the largest infrastructure investors in the world, CDPQ is actively pursuing opportunities in the UK – our largest investment destination outside of North America. We welcome the regulatory changes proposed by the government to promote an attractive regulatory environment and will appeal to additional long-term capital.

Source: GOV.UK

 

COMMENT:

Tom Barton, partner in the Planning team at Mishcon de Reya, said:

“Any reforms which will speed up the delivery of major projects are welcome. While the right to challenge is sacrosanct, it can certainly be argued that at present the law is tilted too far in favour of those wishing to stall development. It is fantastic to see Lord Banner using his knowledge and insight as a practising planning lawyer to inform and drive change through his position in the Lords.

 “As a country we desperately need to take action to deliver major projects to drive growth – these reforms would be a step towards doing so.”

Eoghan O’Lionaird, Chief Executive, Wates Group

“As a business focused on reimagining places for people to thrive, we welcome the proposed changes to planning and the opportunity to work with Government and local authorities to unlock land and build new homes for communities where they are urgently needed.

“Operating as both developer and builder, we experience first-hand the delays and expense that an overly burdensome planning system has added to the process of building homes, schools, hospitals, and other vital infrastructure, including commercial and industrial buildings that are essential to driving economic growth.

“We also welcome the Government’s reforms to environmental impact assessments. A move to Environmental Outcome Reports would save time and money and could be transformational – we look forward to working with Government on the detail and how this can be delivered in a way that maintains robust environmental protections.  

“These reforms are welcome, but they must be underpinned by the forthcoming ten-year National Infrastructure Strategy – something Wates Group has long championed. Providing the built environment sector with long-term certainty is crucial to supporting investment in new technologies and the training of skilled workers. This will be essential to delivering the next generation of infrastructure and ensuring we are well-equipped to meet the challenges of the future.”

 

 

 

 

/0 Comments/by

£49bn Public Services Maintenance Backlog, 30% related to Schools

£13.8bn school building maintenance backlog revealed

Unions have called on the government to urgently invest in restoring school buildings – as a “damning” new report revealed a £13.8bn backlog in maintenance.

The new National Audit Office (NAO) report, estimates a maintenance backlog of at least £49bn across key public services including schools, prisons, hospitals, and MOD sites.

Almost 30 per cent of this backlog – £13.bn (28 per cent) – was accounted for by schools, which came in joint-second place with NHS sites, behind only MoD properties.

The NAO added that “poor government data” means the true cost “cannot be estimated” and “is likely to be higher”.

Paul Whiteman, general secretary at school leaders’ union NAHT, described the report as “damning”, and said the new government must “go further and faster” in making school buildings safe and fit for purpose.

“We frequently hear from school leaders of the unacceptable conditions with which pupils and staff are having to contend – from crumbly concrete to leaking roofs, draughty portable cabins and school dinners being served in corridors,” said Whiteman.

School and college buildings ‘neglected’

“The funding announced in the autumn Budget was a welcome start, but the Treasury admitted it would only get the existing inadequate 10-year rebuilding programme, which is only supposed to benefit around 50 schools a year, back on track.

“The true cost of restoring crumbling school buildings is now likely to be far greater than the £13.8m cited here, and it’s vital that the ongoing national condition survey is completed without delay so the government has a more accurate picture of the funding needed.”

He said setting out a major long-term school rebuilding programme should be a top priority for government investment in the spring spending review.

Meanwhile Julia Harnden, Funding Specialist at the Association of School and College Leaders (ASCL), said the NAO report “lays bare the scale of government neglect of the school and college estate”.

“Recent government investment looks tiny compared with the cuts that have taken place over the last 15 years and the level of need this has inevitably created down the line,” said Harnden.

“We agree with the NAO’s recommendations and particularly the need for the Department for Education to set out an ambitious, long-term plan of how it will ensure school and college buildings are fit for the future, but we also need the Treasury to support the plan with investment. Short-term thinking and small-scale investment is just not going to cut it.”

Building condition can affect retention

Maintenance covers all interventions that help keep buildings up to standard – including cleaning, checking walls and roofs, and repairing and replacing electric, water, sewage, and heating systems.

Well-maintained properties “are more cost effective, less likely to break down, more valuable and longer lasting than poorly maintained buildings”, says the NAO.

The Cabinet Office estimates that deferring backlog maintenance work can increase costs by more than 50 per cent over a two to four-year period.

Working in well-maintained buildings can come with “higher levels of wellbeing, reduced absenteeism and higher productivity”, says public spending watchdog the NAO.

Meanwhile, it found poor property condition can have a negative effect on staff retention – a key issue affecting the teacher workforce.

‘Historic under-investment’ a key factor

The NAO said the government’s maintenance backlog “has increased steadily in recent years”, to the current £49bn estimate.

It cited several reasons behind the rise, including historic under-investment, cost increases and inflationary pressures, and many buildings reaching the end of their intended operational lift at the same time.

The £49bn backlog equates to around four per cent of the government’s total expenditure in 2023-24, or around £710 for each person living in the UK.

Meanwhile the actual cost of remediation – improving the condition of property, rather than just maintaining it – could be “substantially higher, in some cases 10 times higher”, says the Office of Government Property (OGP).

The £13.8bn backlog relating to schools is based on DfE estimates, based on data collected between 2017 and 2019, “converted to 2023-34 prices”.

It does not account for investment made, or improvements that have been carried out since then.

To address the backlog, the government is working to improve its understanding of the condition of its estate.

The OGP is introducing InSite, an enhanced data collection system, and aims to have implemented it by March 2025.

String of recommendations made by NAO

“The government needs to implement a range of measures to urgently address poor maintenance,” said the NAO.

The watchdog has made a string of recommendations, including mandating government departments and arms-length bodies to use a standardised definition of the maintenance backlog, so the true figure across government can be calculated.

It also said departments should produce long-term property plans, setting out capital needs and a plan to reduce their backlog.

It also recommended the Treasury should consider agreeing longer-term settlements for property investment and ring-fencing maintenance funding.

Gareth Davies, head of the NAO said:

“Allowing large maintenance backlogs to build up at the buildings used to deliver essential public services is a false economy.

“Government needs better data on the condition of its operational assets and should use it to plan efficient maintenance programmes to deliver better services and value for money”.

Source: Schools Week

/0 Comments/by

RG+P SECURES SIX EDUCATION SCHEMES AND FRAMEWORK SUCCESS

Tiffield Academy and Overstone Leys, credit PHP Architects 

The Project Management & Cost Consultancy team at multi-disciplinary practice, rg+p Ltd, has announced it has won six significant projects in the education sector as well as a framework success.

 

“These new projects are a mix of refurb and new build schemes and have all been secured over the last 18 months or so as investment in the education sector has accelerated,” explains the firm’s director, Mitch Dale. “The School Rebuilding Programme is a major contributor to this, so we were pleased the Autumn Budget allocated an additional £1.4bn to allow this to continue, along with £2.1m to maintain and improve school buildings, £300m for college estate investment, and £1bn towards the transformation of the Special Education Needs and Disabilities (SEND) system. These pledges represent a necessary boost for the sector and will ensure learning environments are upgraded to help the next generation succeed.

“In addition to these six projects, we were also pleased to be reconfirmed as a preferred supplier on the West Northamptonshire Council Multiple Consultant Framework for the provision of Professional Design, Technical and Estates services. We were successful in the Project Management, QS & Cost Consultant, and Clerk of Works lots and are now supporting delivery of a trio of major schemes in the region,” adds Mitch.

 

In the village of Tiffield, West Northamptonshire, rg+p is acting as Employer’s Agent and QS on the £22m Tiffield Academy, a SEND school for 4–18-year-olds. Currently under construction by Willmott Dixon, this new school will include specialist teaching spaces, soft playroom, sensory room, rebound therapy room, playground, outdoor soft and hard play areas, and will accommodate 230 pupils. This is on track for delivery in summer 2025.

 

Also in Tiffield is the £5.2m refurbishment of the Gateway School, which will provide 55 places for students with social, emotional, and mental health (SEMH) needs together with enhanced sports and leisure facilities, including reopening the existing swimming pool.

 

Finally in the sustainable urban extension of Overstone Leys, rg+p has been appointed as the contract administrator and QS on an £11.5m new primary school, designed by PHP Architects, to serve 420 pupils.

 

Outside of Northamptonshire, additional new schemes include:

  • All Saints College in Notting Hill – a £4.8m expansion to include a new three-storey extension as well as refurbishments to kitchen/diner, dance studios and façade.
  • Homefield College, Mountsorrel – a £1.3m refurbishment of an existing village hall into teaching accommodation for the specialist SEND college.
  • Oaktree School, Enfield – a £5m phased extension of this school and sixth form college

 

Mitch continues:

“Education has historically been a specialism for our architectural team, who have designed many successful primary schools, colleges and student accommodation schemes. It’s therefore pleasing to enhance this reputation with our increased work on the QS/PM side, offering clients a more cohesive service from design to delivery.

“On most of these new projects our role is either Quantity Surveyor, Employer’s Agent or Project Management but we’ve also seen an uptake in our Clerk of Works, Contract Administrator and Principal Designer services. This expansion, both in terms of geographical spread and diversity of roles, means we’re in a strong position and will likely be recruiting in the near future.”

/0 Comments/by