Aggreko: UK Energy Manufacturers must Shore Up Supply Chain

Aggreko emphasizes that the success of the UK’s energy transition hinges on the robustness and resilience of industry supply chains.

In its latest research report, Rebalancing the Energy Transition, the company highlights that UK CEOs view supply chain challenges as the top risk to achieving energy transition goals, followed by insufficient investment and restricted access to technology.

The report advocates for enhanced business collaboration to mitigate these risks and improve access to funding and advanced technologies for the industry.

“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.”

Supply chain challenges have become a key concern as the UK Government reaffirms its commitment to renewable energy production and infrastructure development with the launch of the Clean Power 2030 initiative.

The initiative seeks to address obstacles and expedite progress on energy projects, including a recent proposal to transfer approval authority for onshore wind projects over 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."

Ambition & the UK energy transition

The successful implementation of renewable energy production and transmission infrastructure, alongside the energy transition of businesses across the UK, will require innovative solutions within the energy supply chain.

Aggreko's research reveals a strong commitment to innovation, with UK energy-intensive businesses demonstrating significant ambition toward the energy transition.

Notably, 80% of UK CEOs plan to increase investments in this area within the next year. Despite nine in 10 UK respondents adjusting their energy transition timelines, the UK leads surveyed countries with the highest proportion of CEOs (52%) who have only revised short-term goals while maintaining their commitment to achieving net-zero targets.

As businesses align their sustainability goals with government objectives, Aggreko underscores the critical need for collaboration across the supply chain to ensure the success of the energy transition.

Energising Change: ​​​​​​​A vital sustainability framework

As the UK accelerates the growth of renewable energy production and infrastructure, the report highlights the challenge of aligning commercial objectives with ESG priorities in energy procurement.

A crucial part of this effort is fostering close collaboration within the energy supply chain to evaluate needs, overcome obstacles, and implement practical solutions that deliver both operational efficiency and environmental benefits.

Aggreko’s sustainability framework, Energising Change, supports this approach by offering advanced and efficient technologies through its Greener Upgrades portfolio.

These solutions, including battery energy storage systems and Stage V generators, are designed to promote sustainability while meeting the evolving demands of the energy transition.

“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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