Unlocking a £100bn Opportunity in Electricity Pricing Solutions
Welcome, Net Zero News readers,
In a significant move towards a sustainable future, the manufacturing organisation Make UK has launched its ambitious initiative, Electrify Industry, at the esteemed Houses of Parliament. This groundbreaking event saw a diverse array of companies from across British industry unite under the common goal of advancing electrification in the manufacturing sector.
According to data from Electrify Industry, if industrial electricity prices were addressed effectively, the UK could witness the creation of up to 2 million new jobs. This transformation could inject a staggering £100 billion into local economies across the nation, underscoring the immense potential of a shift towards electrification.
Notable supporters of this electrification drive include industry giants such as AMP Clean Energy, Siemens, Schneider, Babcock Wanson, Brush Group, the Confederation of Paper Industry, Spirax Sarco, GEA, Renewable UK, and Numatic. Their commitment reflects a collective recognition that transitioning from traditional gas to electricity is not just a matter of environmental responsibility but a vital economic opportunity.
The backdrop to this initiative is a pressing concern: many manufacturers feel constrained in their ability to transition to electrification due to exorbitant electricity prices. Currently, the UK holds one of the highest electricity costs in the Organisation for Economic Co-operation and Development (OECD). In fact, UK electricity prices are approximately three times those found in France, 60% higher than in Germany, and four times greater than those in the USA. This situation is deemed “no longer tenable” by industry leaders, who are urging the UK Government to explore policy options that would alleviate the financial burden on companies willing to make the switch to electricity.
Laura Sandys, Chair of Electrify Industry, emphasised the critical nature of this transition, stating, “Getting industrial electrification right will drive growth in UK manufacturing across the board, helping to secure Britain’s industrial future on the international stage as drivers of world-leading products.”
She went on to highlight the challenge of grid connectivity, noting that a staggering £3 billion worth of investment is currently stalled due to regulatory delays. “These are real jobs, productivity gains, companies that need to modernise—all waiting for years before they get the green light to invest when they are finally able to connect,” Sandys explained. This delay not only hampers progress but also stifles innovation and growth across multiple sectors.
To realise the electrification revolution, Sandys asserts that electricity prices must become competitive with other available energy sources, particularly when compared to global competitors. “If Britain’s industrial base is to be maintained in a meaningful way, this is a critical step which will unlock potential and growth across multiple sectors and supply chains,” she concluded.
Adding her voice to the conversation, Sarah Coombes, MP for West Bromwich, expressed her pride in representing a constituency that remains a manufacturing powerhouse. “As the MP for West Bromwich, I am proud to represent a constituency that is still very much a manufacturing powerhouse,” she said. Coombes stressed her support for the move to electrify industry, asserting that it would not only create jobs and investment in the industrial heartlands of the country but also reinforce the government’s ambitious growth and clean power missions.
With the launch of Electrify Industry, a new chapter begins in the UK’s manufacturing landscape. The initiative signifies a collective commitment to harnessing the power of electrification, paving the way for a greener, more sustainable future while also addressing the pressing economic challenges faced by the sector. As we move forward, the support of industry leaders, government policy changes, and public awareness will be crucial in driving this electrification agenda forward.
As the discussion continues, it is essential for all stakeholders—manufacturers, policymakers, and the public—to engage actively in this transformative journey. The path to a net-zero economy is paved with opportunities, and initiatives like Electrify Industry are vital in ensuring that the UK not only meets its environmental targets but also thrives economically in the process.
Let us remain vigilant and supportive as this crucial initiative unfolds, championing the cause of electrification in manufacturing and working towards a sustainable, prosperous future for the UK.
Image of last night’s event courtesy of Electrify Industry
