Energy Transition Insights
Insights
Realising a cleaner future for Energy & Utilities
The energy transition is fundamentally transforming the sector, creating both opportunities and challenges for suppliers and investors alike, as we shift towards cleaner, more sustainable energy sources. This transition demands substantial investments in infrastructure, technology, and innovation, while also managing the impact on customers and the workforce.
At BFY, we’re supporting suppliers and investors on this journey, leveraging expertise from BFY Carbon Strategies and our ESG offering, to optimise performance and capitalise on sustainability opportunities. Our insights address key questions, including:
- What are the key challenges and opportunities for suppliers and investors in the energy transition?
- How can companies balance regulatory pressures, technological advancements, and financial performance during this shift?
- What role will innovation and collaboration play in driving the success of the energy transition?
Insights
Energy Transition
Spending Review: What £40bn green investment means for the energy sector
Chancellor Rachel Reeves has set out the government’s spending plans through to the next election. Despite early doubts, energy emerged as one of the biggest winners. See what it means for the sector here.
With 2030 EV policies confirmed, is the UK ready to deliver?
The UK’s EV rollout is accelerating – and with Labour confirming the 2030 phaseout of new petrol and diesel cars, the pressure is on. The UK will need to scale up to 9 million EVs and 300,000 public charge points by 2030. Are we ready for the challenges – and the opportunities – this presents?
Heat Network Regulation: Action plan for future market leaders
In part two of our Heat Network Regulation article, we turn to the important question of what those in the sector should be doing right now to prepare. This is both an opportunity and a risk for heat network suppliers. Those who can get it right will stand to win from the coming growth in the market. Those who get it wrong will find themselves exposed, and eventually, risk exiting the market.
Heat Network Regulation: The compliance countdown that will define future players
In January 2026, the UK heat network sector faces a huge transformation. As Ofgem takes regulatory control, suppliers face a stark choice: adapt quickly to thrive in a growing market or risk business failure under unprecedented scrutiny. With less than nine months to prepare, the clock is ticking - and many suppliers remain dangerously unprepared.
Domestic heat pump installs have trebled since 2022
Our analysis shows Air Source Heat Pump (ASHP) installations have seen a 3x increase in monthly installs since 2022. After a significant peak and drop when the Renewable Heat Incentive (RHI) scheme closed in 2022, demand has recovered strongly and continued to grow.
Solar installs are up ~400% since the SEG Scheme began
At 15k installs per month, demand for domestic solar has grown by ~418% since 2020 - an annual growth rate of ~60%. The biggest incentive for installing solar panels is currently due to avoided import costs; but attractive SEG export tariffs now offered by suppliers increase the overall economic benefit to consumers.
What’s next for M&A in the Energy Transition?
Drawing from our recent advisory work on M&A opportunities in the energy transition, we’ve outlined key insights into the top investment opportunities and risks. As we enter a new financial year for many, we also highlight five strategic actions investors can take to maximise returns and unlock the full potential of the energy transition.
Quantifying the investment needed for cheaper bills under GB Energy
GB Energy's ambition to reduce bills and make Britain a 'clean energy superpower' is welcome news. But substantial private investment will be needed, if the potential savings pledged by Labour are to be realised. Using a very high-level business case, we've quantified the scale of investment that may be required.
Capitalising on new M&A opportunities with renewable energy
With Labour leading the drive towards clean energy, we're expecting to see an uplift in M&A activity related to renewables throughout the rest of 2024. Profits, economies of scale, and enhanced customer engagement are on offer to those who capitalise on the opportunities.
Average solar payback takes 14 years - optimising efficiency is key
Recovering install costs for domestic solar panels currently takes ~14 years, and customers can optimise efficiency to access the full potential of these systems, as covered here.
Heat Pump support increasing, with budget for 3.3k installs pm
Support for Heat Pumps is set to increase next year, with budget for up to 3.3k installations per month - doubling the current funded install rate.
Addressing the carbon reduction challenge in data utilisation
The technology and software sectors are a key driver of economic growth, attracting private equity and venture capital investment thanks to their scalability and high margins. Global tech spend is booming, forecasted to reach £3.6 trillion in 2024, so what’s the catch?
Energy Transition
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Ian Barker
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Ian shapes the BFY vision and inspires our team to bring it to life, while remaining central to complex client engagements in Strategy, Commercial, and Operations.
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Matt lead clients through key strategic projects exploring growth opportunities, business models, competitive advantage, and mergers & acquisitions.
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John de Bono
Consultant
John performs various analyses to provide BFY and their clients with unique insights, which help to inform decision making and inspire exceptional performance.
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