UK property experts are split on whether the government will deliver improved energy infrastructure during its five-year term in parliament, despite the government’s ambitious net zero targets.
Audit firm RSM’s latest ‘UK Real Estate 360’ survey shows that 41% of businesses think government will deliver improved UK infrastructure during this parliament, whereas over a third (37%) think this is unachievable.
Nearly a third (31%) said that the establishment of GB Energy will have the greatest impact on infrastructure delivery, followed by streamlining planning (25%), and establishment of the National Wealth Fund (17%). More than half of the businesses surveyed (57%) also think that energy should be prioritised to support the UK’s economic and net zero initiatives, followed by public sector (34%) and road (27%) infrastructure.
But, over a third (35%) said that there’s a lack of landlord willpower to invest in environmentally friendly solutions, which was perceived as the second biggest barrier to de-carbonising the real estate sector, with lack of cost-effective tech solutions taking the top spot at 38%.
Sheena McGuinness, partner at RSM UK, says: “The direction of travel for UK energy infrastructure has been set, but the lack of clarity is leading to confusion, and in turn limited investment, within the real estate sector. The energy transition won’t happen overnight, given the complexities of energy policy, planning, production and significant delays to grid connection.
“However, transparency on how GB Energy will help to stimulate clean energy generation, create new jobs and shore up our supply chain will help businesses to commit to long-term planning and investment, especially in an energy-intensive industry like real estate. There are also further challenges implementing and investing in new technologies for energy efficiency, renewable energy integration and smart building management, given the upfront cost and navigation of complex regulatory systems required for these tech solutions.
“Embedding better energy infrastructure and the skills needed to achieve net zero will take time and private capital investment, so in the short term, we may see developers step away from larger scale projects and start to invest in smart micro-grids to circumnavigate the long delays in grid connection.
“Although the government has outlined its commitment to clean energy, we’re still awaiting detailed policy in the industrial strategy. This needs to clearly define our future energy sources and key tax incentives which will allow developers and landlords to invest with confidence to drive long-term change.”
This article is taken from Landlord Today