The East of England is home to a thriving energy sector which has a central role to play in the UK’s transition to net zero. We were pleased to welcome local businesses to our recent Energy Insights webinar focussed on identifying Labour’s Energy Priorities for the East of England.

We had a fantastic panel leading the discussion comprised of Kevin Keable, Chair of the East of England Energy Group, Irene Bruce, Head of Employment and Skills at Offshore Energies UK, and Julia Pyke, Managing Director at Sizewell C. The panel was chaired by PLMR’s Head of Energy and Sustainability Patrick Cousens.

It was a positive, engaging discussion and it’s clear there are huge opportunities for the region. So, what did we learn? Here are 5 key themes which emerged…

1. The region is already a leader in clean energy

The East of England is well on its way to being a world leading clean energy producer. It is in a unique position in the UK with its diverse mix of technologies from wind, solar, nuclear to battery storage. In 2023, the region produced enough power for over a third of UK homes. Industry estimates show this could increase to nearly 90% by 2035.

The opportunities for growth are clear and the panellists agreed that the East of England can be an energy powerhouse for the UK. However, for too long, the region has been overlooked in Westminster by successive governments. The policy decisions made over the next few years will be instrumental in determining whether the sector reaches its full potential.

2. Mind the skills gap

The East of England currently has amongst the highest skills shortages of any region in the UK. This is one of the biggest barriers to the growth of the clean energy sector. Panellists called for the new government to publish a comprehensive skills strategy, focussed on both driving young people into the industry and reskilling the existing workforce. Particular focus needs to be given to promoting workplace experiences for students in education and giving equal recognition to both university degrees and apprenticeships. There was broad agreement that businesses didn’t take full advantage of the Apprenticeship Levy due to confusion about the policy and limited flexibility – the later of which the Labour government is addressing.

One of the key considerations discussed was ensuring that when oil and gas in the region is phased out, the renewable sector is ready to take on and retrain this workforce. This has been referred to as the ‘mind the gap’ problem. Panellists agreed that we need a consistent approach to skills policies to avoid businesses all adopting different schemes and approaches.

3. Infrastructure upgrades

A key theme underlying the discussion was infrastructure. This is an area where the region hasn’t had the investment it has needed. On transportation, the road and rail network struggles to cope with demand, which will only increase as the energy sector grows. Panellists outlined how it’s also impacting the jobs market as it reduces access and opportunities, particularly for young people without a car. If investments aren’t made, there’s a real risk jobs could go elsewhere in the UK.

There also needs to be substantial upgrades to the electricity network. From heat pumps, electric cars to consumer reliance on electronic devices around the home, supply isn’t keeping pace with the increasing demand. Alongside the electricity network, panellists highlighted the need for more long duration energy storage. However, there have been challenges with consumer resistance to the planned rollout of new pylons in the region. Panelists highlighted the need for closer collaboration between business, government and consumers to outline the shared benefits.

4. Don’t forget consumers

If the East of England has to host a substantial amount of the net zero infrastructure from nuclear power plans to wind farms, panellists shared the view that local residents and businesses should receive more of the direct benefits. This will help with the prior point regarding consumer concern over the impact of proposed new infrastructure.

This includes delivering new jobs which stay in the region, infrastructure upgrades which benefit towns and provides better connections for rural communities, and a commitment to supporting biodiversity and the natural environment as a requirement of new projects.

5. Clarity from the Labour Government

The first 100 days of the new Government have passed and Labour has made clear that delivering net zero is a key part of their policy platform and central to economic growth. However, we have yet to see the finer details and there are still lots of questions.

The panellists all agreed that we need clarity and, more importantly, consistency. Newly elected MPs in the region also need to shout about the opportunities and make representations in Westminster. A key focus needs to be planning regulations and removing some of the barriers which add both time and cost to infrastructure delivery, particularly when it reduces opportunities for local, smaller businesses to tender.

For the energy sector in the East, the mood music from the new government has been positive. The upcoming Budget will also give a clear indication of the direction of travel. What we need to see is the public, private and third sector working together with one united voice alongside newly elected MPs to ensure the region doesn’t miss out on the opportunities net zero can deliver.

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