Renewable Energy

Aggreko has highlighted the critical role of supply chain collaboration for the success of the UK’s energy transition in its latest report. The global energy specialist’s research, Rebalancing the Energy Transition, reveals that eight out of 10 UK CEOs in energy-intensive industries plan to increase investment in supporting the energy transition over the next 12 months, despite ongoing supply chain challenges.

According to Aggreko’s findings, UK CEOs identify supply chain issues as the primary risk to the energy transition, followed by a lack of investment and access to necessary technology.

This concern comes amid the UK government’s renewed commitment to renewable energy and infrastructure, marked by the introduction of Clean Power 2030. This initiative aims to overcome obstacles and speed up progress on energy projects, such as granting government ministers approval for onshore wind projects over 100MW, bypassing local authorities.

The effective deployment of renewable energy production and transmission infrastructure, alongside business energy transitions, will require fresh, innovative approaches within the energy supply chain.

Aggreko’s research showed that ambition around the energy transition among energy intensive businesses is also strong, with eight in 10 UK CEOs stating they will increase investment in the energy transition over the next 12 months. Though nine in ten (or 9 in 10) UK respondents cited they have adjusted timescales around energy transition targets, the UK has the highest proportion of CEOs (52%) across the countries surveyed that stated they have only adjusted short term goals and remain on track for net zero targets.

With ambition from businesses matching that of the government in terms of sustainability targets, Aggreko is highlighting how the entire supply chain must work together to ensure a successful energy transition.

Alan Dunne, UK and Ireland Managing Director at Aggreko, said: “With continued uncertainty around energy cost and resilience, businesses in the UK are facing the challenge of balancing profitability and sustainability. 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.

“High energy costs and fluctuating energy security and resilience has continued to be a challenge for businesses, 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.”

As the UK continues to develop renewable energy production and infrastructure, the report highlights the challenges around striking the right balance between commercial and ESG ambitions with energy procurement. A key part of this is working closely within the energy supply chain to assess requirements and challenges to choose the most practical solution to deliver efficiency and environmental benefits. Providing the latest efficient technologies through its Greener Upgrades portfolio, such as battery energy storage solutions and Stage V generators, is a central part of Aggreko’s sustainability framework Energising Change

Dunne continued: “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. 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.”

Independent UK law firm Burges Salmon has played a key advisory role in a $10 million long-term senior debt financing arrangement for the Facility for Energy Inclusion (FEI). The financing will enable Cicada Solar Limited, a leading provider of commercial and industrial solar solutions in Zimbabwe, to scale its operations and bridge the country’s significant power supply gap.

Zimbabwe’s economic growth is heavily constrained by inadequate energy infrastructure, creating an urgent demand for sustainable and cost-effective solutions. Cicada Solar plans to address this issue by expanding renewable energy access and offering vendor financing solutions to businesses. Burges Salmon’s Banking and Finance team provided essential legal guidance on the deal, which aims to bolster the provision of renewable energy to commercial and industrial sectors in Zimbabwe.

FEI (managed by Cygnum Capital, one of the largest asset managers on the African continent) supports the expansion of Africa’s energy infrastructure, with a particular focus on small renewables including distributed energy solutions. FEI is a market leader in the financing of commercial and industrial solar projects across the continent, and this latest financing to Cicada highlights FEI’s ability to invest in frontier markets which otherwise have limited access to long-term infrastructure financing. Cygnum Capital has c. USD 1.1 billion of assets under management, with investments in 35 African countries.

The multi-disciplinary team from across Burges Salmon’s Energy and Infrastructure sectors advising on the transaction comprised Stuart McMillan, Luke Addison, James Horton, Uba Emole, Emily Cranston, Alice Burns, and Zar Wilson.

Carmen de Castro, Managing Director of FEI, comments: “Further demonstrating its leading role in the C&I sector in Africa, the Facility for Energy Inclusion has been able to leverage its experience to deliver this milestone transaction in Zimbabwe. It was a pleasure to work with the Burges Salmon team, whose experience, responsiveness, and thoroughness were instrumental in supporting us throughout this transaction.”

Stuart McMillan adds: “It has been a pleasure working once again with the Facility for Energy Inclusion on this transaction, which will significantly enhance the provision of renewable energy in Zimbabwe. We are proud to support clients in enabling the provision of sustainable and affordable power across the continent of Africa.”

New research highlights ongoing power supply challenges as a major hurdle for the fast-growing offshore wind industry, underscoring the need for a stronger energy supply chain to support growth.

The report, Race to Renewables, published by energy solutions specialist Aggreko, surveyed 855 offshore wind professionals across Europe. It found that 39% identified the lack of temporary power solutions as the biggest obstacle to growth, while the integration of greener technologies was also cited as a critical challenge.

Additionally, 39% of respondents pointed to transport and logistics issues as a key barrier to securing power, and 34% cited delays in equipment turnaround times. These power supply gaps particularly affect the construction phase, where reliable energy is needed for tasks like cable laying and operating heavy-lifting vessels.

The report also highlights a growing demand for greener technologies in offshore wind projects, as industry leaders aim to reduce emissions. However, the high cost of these technologies and a significant skills gap are impeding adoption. Over 41% of respondents admitted that a lack of technical knowledge and experience is slowing the transition to more sustainable energy solutions.

The offshore wind industry is experiencing a major boom, with construction activity at record levels. Across Europe, more than €5 billion is expected to be invested in the sector, with funds aimed at securing advance payments and performance guarantees for new projects. In the UK, recent policy shifts, including the reversal of an onshore wind construction ban and the awarding of nine offshore wind projects to generate 9.6GW of power, further signal rapid growth in the renewable energy sector.

However, unresolved temporary power challenges could derail these ambitious targets. Aggreko’s report calls for strategic partnerships in the energy supply chain to provide flexible and reliable power solutions, helping to mitigate delays and ensure smooth project development.

Michel Maaskant, Sector Sales Specialist for Offshore Renewables at Aggreko, emphasized the need for urgent action:
“Despite significant industry growth, challenges remain that could impede progress if not addressed. To meet the ambitious targets set by European governments, the sector must focus on overcoming barriers to green technology adoption and securing reliable power for projects.”

Aggreko’s sustainability framework, Energising Change™, aims to support the wind industry through long-term site planning, infrastructure development, and grid balancing services. This framework is designed to facilitate the transition to renewable energy, including expanding grid capacity and commissioning new wind farms.

“Energising Change™ is about enabling industries to shift to more sustainable energy solutions,” added Maaskant. “Strategic partnerships between energy providers and offshore wind companies will be crucial to creating sustainable supply chains and delivering dependable power solutions.”

These efforts will be vital to ensuring the continued growth of offshore wind and meeting renewable energy targets across Europe.