Almost all UK businesses expect to electrify operations by 2035, says poll
Image credit: Adobe Stock The research, set out in the Powering Up: Business perspectives on electrification report, involved surveying business executives across 18 countries, who overwhelmingly identified electrification as being central to resilience, economic growth and business competitiveness.
In the wake of ongoing tensions in the Middle East and fossil fuel price hikes, 91% said electrification would help boost energy security, with 79% saying that the continued instability has made their own business electrification journey more urgent.
Energy security consistently emerged as the biggest perceived benefit of electrification, both in the UK and across the rest of the world, and both in terms of security for individual businesses (35% of UK executives) and the economy overall (42% of UK executives).
Mirroring the attitude in the UK specifically, 90% of global business leaders expect that their operations will be electrified by 2035 at the latest. Similar proportions said that switching to a renewables-based electricity system would help boost economic growth within their country, and that electrifying their own operations would improve their firm’s competitiveness.
“At a time of geopolitical instability and fossil fuel volatility, companies are not retreating from the transition – they are moving faster towards it,” said Maria Mendiluce, CEO of the We Mean Business Coalition.
The role of governments
In terms of infrastructure, the vast majority of leaders said that investing in electricity grids will make energy more affordable in the long term, with 90% of UK respondents saying they supported grid upgrades.
According to the International Energy Agency (IEA), global energy investment is projected to reach $3.4trn in 2026, with about $2.2trn of that set to go into grids, renewable energy, nuclear power, efficiency, electrification and other low-emissions technologies.
According to the research, electricity is now the dominant driver of global energy investment. Spending on power generation, grids and electrification is expected to approach $1.6trn in 2026, rising to about $2trn when end-use electrification is included.
Policymakers are lagging
Despite the clear support for electrification and surrounding investment demands, almost three-quarters of those polled globally said that government policies are not currently moving fast enough.
According to 93% of UK business leaders, electrification should help improve energy security, but 60% believe that their business is electrifying faster than the Government is preparing the energy system.
Nearly half of UK respondents said the nation’s power systems weren’t keeping pace with industry’s electrification needs, with 51% saying policies weren’t moving fast enough in the country.
Over half of executives worldwide said they would consider moving their operations abroad to a renewably powered grid if their own country didn’t transition in the next decade, with 60% of UK business leaders suggesting they would move the company if the Government didn’t offer enough electrification support.
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Beyond future-proofing the grid, businesses identified government grants or subsidies, clearer long-term policy with national electrification timelines, lower electricity prices and faster grid connections as key areas where they want support from governments.
Bruce Douglas, CEO of the Global Renewables Alliance said: “Businesses know which way the wind is blowing. This polling highlights that their competitiveness depends on how fast they can electrify with renewable energy.
“It is no surprise to see their top request to governments is to build and modernise grids facilitating access to cheap, secure electricity.”
