BEAMA – the trade association representing manufacturers of electrical products spearheading the drive to electrification – a sector valued at £14bn – welcomes today’s Industrial Strategy as a crucial step in the right direction.
As the UK embarks on the historic task of electrifying its energy system, this Strategy offers valuable support to manufacturers in critical industries to secure the economic and environmental benefits of this transition.
BEAMA members from the electricity networks and electric heating sectors, vital players in decarbonising the UK’s power system by 2030 and retrofitting 29 million homes by 2050, have responded positively to the Government’s Clean Energy Sectoral plan.
BEAMA members from the electricity networks and electric heating sectors have responded positively to the Government’s Clean Energy Sectoral plan.
Specific measures in the Strategy of high potential impact are:
- Recognition of electricity networks as a foundational sector
- Commitment to developing an Industrial Growth Plan for electricity networks
- Options to boost local manufacturing
- The objective for greater project pipeline certainty
- Recognition of the importance of flexibility and the digital economy
- Funding opportunities through new Government-backed institutions
- Cross-references to Net Zero measures in the other sectoral plans
UK commits to electrification of buildings and heat to bring down consumer bills
BEAMA also welcomes progress in outlining the electrification of buildings, including heat. The challenge for Government going forward will be to ensure heat electrification is normalised across a broad range of solutions, offering customers choice and the significant energy bill benefits of using storage technologies.
The next challenge will be to keep up the momentum, continue to engage with industry and commit to practical measures that will boost British manufacturing.
UK supply chain stands poised to invest, but urgently needs product demand visibility
Through the ‘Market Pulse’, BEAMA’s landmark industry survey, manufacturers have consistently shown a strong desire to invest, which has up until now been held back by unfavourable conditions compared to other countries.
Today, Government has begun to address many of the most significant challenges, but more needs to be done to help improve demand for the electrical products needed for decarbonisation, and to drive investment into their build out.
Manufacturers will also hope to see more tangible measures to help drive mass market demand for low carbon products in the upcoming Low Carbon Flexibility Roadmap, Warm Homes Plan, Transport Strategy and REMA decisions.
Further measures in the upcoming Workforce Strategy, Circular Economy Strategy, Industrial Decarbonisation Strategy, SME Strategy, and Trade Strategy will also help the sector reach its true potential and support industrial innovation.
Yselkla Farmer, Chief Executive of BEAMA, comments:
“Building upon our nation’s strengths as global engineering and innovation leaders, today’s industrial strategy outlines a pathway to the UK seizing a once-in-a-generation global opportunity to become the low carbon technology workshop of the world.
“At BEAMA we’re proud to be celebrating our 120th anniversary, and looking back through our archives it’s clear our sector has a rich historical legacy of driving innovation across electrical energy systems. The UK is still home to a wide range of manufacturers of clean energy products and today’s announcements will draw on this first-class expertise as we enter a new period of industrial growth.
“We are especially pleased to see the level of financial support being targeted for BEAMA sectors through GB Energy, the National Wealth Fund and the British Business Bank. Our hope is this can help bring forward investment in UK manufacturing to supply the UK’s electrification needs across the grid and in homes. The decision to reduce electricity costs for the IS-8 manufacturing sectors is an incredibly welcome step as we strive to ensure we can compete for investment globally.
“We are committed to continue working with Government and our members to ensure the success of this strategy. We need to turn our attention now to the bespoke package of regulatory, financial, and policy measures needed to forge the most attractive investment climate possible.
“Our shared objective should be to deliver sustainable, long-term policies that lead to stable growth in local manufacturing, without disrupting what is also currently a very global and integrated supply chain.
“That is why BEAMA is proud to be driving a Grid Industrial Growth Plan for the Transmission and Distribution infrastructure sector, alongside other industry supply chain representatives and Government. This will allow us to identify our manufacturing strengths and target incentives to capitalise on the greatest opportunities available.
“The forthcoming trade and industrial decarbonisation plans are also essential elements of this industrial strategy which we are pleased to be working on with Government.”
Erika Wilson, Managing Director of Wilson Power Solutions and BEAMA President, said:
“The ten-year industrial plan represents a significant and welcome development for our sector, marking the most substantial collaboration between government and industry to date. It paves the way for a more stable and attractive investment environment. At Wilson Power Solutions, we are particularly encouraged by the emphasis on the transmission and distribution networks, the backbone of electrification. As a transformer manufacturer, our equipment plays a critical role in enabling the connection of renewable energy sources, battery storage systems, and data centres to the grid.
“While we may not directly benefit from the proposed energy bill reductions, we commend the strategy’s focus on addressing the industry-wide skills gap, a persistent challenge for us in recent years. We strongly support efforts to attract global talent to the UK, facilitating knowledge transfer and workforce development. We urge the government to prioritise action on this front, as these skills are needed now.
“In line with these ambitions, we are investing in our manufacturing capabilities both domestically and internationally to remain competitive and secure our supply chain in support of the UK’s decarbonisation agenda. We encourage the government to maintain close dialogue with our industry to ensure the successful delivery of this strategy and to keep us on track toward achieving a clean power system by 2030.”
Richard Earl, Director of Research & Development at EO Charging and BEAMA Vice President, said:
“The industrial strategy will allow BEAMA members to accelerate the electrification of the UK. A coordinated strategy, reform of the electricity sector resulting in reduced electricity costs and streamlined connections both aligned with significant R&D Investment and international alignment will allow our members to invest with certainty and deliver the products and services required to decarbonise the UK.”
John Griffiths - CEO, Lucy Electric commented:
"The industrial strategy announced today, addresses key issues impacting our electrical sector such as skills, innovation, and infrastructure. Bold decisions and commitments are needed now to secure investment quickly and ensure the lowest possible cost to UK customers. The longer we delay on subsequent policy and regulatory changes, the steeper the hill we must climb to meet targets and grow the UK’s green economy. The investment required to meet these targets simply cannot happen overnight.
