UK energy and industry landscape outlook for 2025
Author : Kelly Becker, Schneider Electric
12 December 2024
Kelly Becker, President, Schneider Electric UK&I, Belgium and Netherlands
Leading UK operations for the world’s most sustainable company according to Time magazine and Statista, Kelly Becker, President at Schneider Electric UK and Ireland, Belgium and Netherlands, outlines her UK energy forecasts for 2025.
1. Businesses can be empowered to turn the challenge of energy volatility into a key business opportunity.
“Energy price volatility is set to continue impacting global markets in 2025, posing challenges to supply chains, production costs, and operational budgets. However, this volatility also presents businesses with a unique opportunity to drive innovation, enhance energy efficiency, reduce future costs, and accelerate sustainability to secure long-term growth.
“Ultimately, the cheapest energy is the energy that’s not used. Next year, we need to see more industries adopt energy efficiency measures, including uptake of digital tools, energy audits, and equipment optimisation. Paired with proper training, this will help businesses cut costs, shrink environmental footprints, and build resilience against volatile energy prices. Widespread uptake of digital technologies will also support economic and industrial growth and create new, highly skilled jobs.”
“As consumers and stakeholders place more emphasis on sustainability, businesses that prioritise energy resilience and environmental responsibility will gain a competitive edge. By demonstrating leadership in energy efficiency, we’ll see companies not only able to protect their bottom lines but also enhance their brand value and reputation in an increasingly eco-conscious market.”
2. An ambitious Industrial Strategy will enable the UK to edge closer to regaining its position as a manufacturing superpower.
“In 2025, the UK Government will publish its Industrial Strategy. This will provide much-needed certainty for industry and investors. A robust and ambitious Industrial Strategy, alongside a clear action plan for decarbonising the power system, will help the UK to regain its position as a green manufacturing superpower. The UK is a hotbed for cutting-edge technology and skills and that makes it well positioned to meet growing demand for smart energy solutions that power greener buildings, factories, and electrical grids.
“The Government has already acknowledged how important electrification and net zero will be to achieving UK economic growth and prosperity. Next year, we need to turn this into our biggest opportunity yet – with measures supporting the acceleration of digitalisation and electrification, as well as highly skilled jobs which can maximise the UK’s competitive advantage globally and create new trade opportunities.
“Targeted incentives, infrastructure development, and smart regulation will help to create the stability that UK manufacturing needs to thrive next year and beyond.”
3. Skills shortages will be the key challenge for achieving a ‘Just Transition’.
“Building on the theme of this year’s COP event, the ‘Just Transition’ will continue to reshape the global energy landscape in 2025 by prioritising inclusivity and equity in the shift to a greener economy. At its core, this principle aims to balance environmental, economic, and social priorities to ensure that the benefits of the energy transition reach all sectors of society.
“The biggest challenges to delivering this so far have ranged between funding and investment, policy, regulation, education, and training. Addressing these challenges will require a holistic approach that balances environmental, economic, and social goals, and in 2025, we’ll see more businesses taking the initiative in the collective pursuit of a ‘Just’ energy transition.
“We can expect businesses to work more closely with education providers to prepare workers for new roles in the green economy and increase understanding of the opportunities available. Apprenticeships, for example, offer an alternative career route which is dynamic, flexible and can help us to innovate at every level, bridging progress and sustainability. The Government has rightly recognised that the current apprenticeship levy must be reformed, and Schneider Electric looks forward to working with the Government to deliver this. And, with younger people increasingly interested in organisations that focus on sustainability, the curriculum itself should reflect more green skills. As we look ahead, it's vital that these skills become an integral part of education, training, and careers advice as this will form the basis of the ‘Just Transition’.”
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