Global outlook and summing up

The challenges faced by the UK are not unique, as governments around the world announce huge levels of funding to transition to net zero carbon and enhance energy supply security.

Earlier in the report, we highlighted the EU’s efforts to speed up the transition away from fossil fuels with €210 billion of additional investment for the REPowerEU plan, to phase out Russia’s fossil fuel imports and facilitate affordable, secure and sustainable energy.

What are other countries doing?

USA

In August, Joe Biden, USA President, signed the Inflation Reduction Act (IRA) of 2022 into law — the largest climate change and energy spending package in US history. The bill includes $600 billion in spending, with $370 billion dedicated to supporting renewable energy and climate resilience.

The IRA mandates a reduction of carbon emissions by approximately 40% nationwide by 2030. By this time, it is expected that 950 million solar panels, 120,000 wind turbines and 2,300 grid-scale battery plants will have been installed. The package also aims to lower energy bills and combat inflation.

Canada

In Canada, Chrystia Freeland, Minister of Finance, tabled the 2022 Federal Budget titled ‘A Plan to Grow Our Economy and Make Life More Affordable’. The budget identified $250 million over four years, starting in 2022–23, to support pre-development activities of clean electricity projects of national significance, such as interprovincial electricity transmission projects and small modular reactors.

Nearly $70 million was identified for research to minimise waste from small modular reactors and to support the creation of a fuel supply chain. The budget also identified the need for a Critical Minerals Strategy that includes support for uranium exploration. Starting in 2023–24, up to $1.5 billion has been allocated over seven years, for infrastructure investments that would support the development of the critical minerals supply chains, with a focus on priority deposits.

In 2020, the Canada Infrastructure Bank (CIB) announced its three-year, $10 billion Growth Plan, which included a goal of helping Canada achieve its emissions reduction targets.

To increase impact, Budget 2022 announces a broadened role for the CIB to invest in private sector-led infrastructure projects that will accelerate Canada’s transition to a low-carbon economy. This will allow the CIB to invest in small modular reactors, clean fuel production, hydrogen production, transportation, distribution and carbon capture, utilisation and storage.

China

China has recently experienced heatwaves and drought, causing some rivers, including parts of the Yangtze River, to dry up, sparking shortages of hydropower.

The loss of water flow to China’s extensive hydropower system sparked a “grave situation” in Sichuan, which obtains more than 80% of its energy from hydropower.

As a result of the shortage, Sichuan rationed public electricity usage and limited power supply to factories, with Toyota, Foxconn and Tesla among the companies reported to have suspended operations.

An increase in coal-fired power production was anticipated as there was concern that the impact of the drought on electricity production might threaten climate change commitments. However, on 15 September, China reaffirmed its commitment to carbon neutrality: to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060.

How can the UK energy sector and Gleeds Energy support other countries with their objectives?

The UK has a long legacy as a pioneer of civil nuclear power. From the 1950s onwards, the British government commissioned and built a series of world-leading nuclear power stations which are now in varying stages of being decommissioned — an undertaking that will continue well into the 22nd century.

Cleaning up 17 of the UK’s earliest nuclear sites is currently estimated at a cost of circa £3 billion per annum. As we embark on a programme of constructing new facilities, those plans and forecasts will be affected by technological improvements, changes in government policy, economic circumstances and environmental issues.

Experience is growing in the project delivery of renewables; an expertise that can be exported and shared to help other countries meet their aspirations.

Gleeds has been working alongside parent body organisations, site licence companies and suppliers across all parts of the energy sector — renewables, nuclear, oil and gas, as well as Hydrogen and CCUS.

We have accumulated and assembled our knowledge to compile a comprehensive data warehouse and technology library to inform more accurate budgets. We advise throughout the lifecycle of projects and help to embed collaborative behaviours.

At such a key time for the sector, we look forward to supporting clients and teams around the globe in powering up.

Get in touch with the Gleeds Energy team:

Andy Ellis

ENERGY REGIONAL DIRECTOR

Thomas Hawley

DIRECTOR

Gary Mills

SENIOR DIRECTOR

Russell Rome

PROJECT DIRECTOR

James Dickens

PROJECT DIRECTOR

Gleeds Insights and Analytics:

James Garner

SENIOR DIRECTOR, GLOBAL HEAD OF DATA, INSIGHTS & ANALYTICS

Nicola Sharkey

PROJECT DIRECTOR, UK INSIGHTS & RESEARCH LEAD

Legal disclaimer: This report was prepared by Gleeds and is for general information only. Neither Gleeds nor any of their partners, directors, employees or other persons acting on their behalf makes any warranty, express or implied nor assumes any liability with respect to the use of the information or methods contained in this paper to any person or party. This document is subject to copyright and must not be reproduced.

APM
CIOB
Investors In People
RICS