Decoding the UK’s 10-Year Infrastructure Strategy: Key insights for the utilities sector

The UK government recently outlined what it would be including in its new 10-Year Infrastructure Strategy, set to be released in June 2025. It claims it has tried to ‘address persistent uncertainties’ that have previously stalled progress of infrastructure schemes and caused costly supply chain delays.

While there are certainly some positive takeaways from what has been released so far, there will undoubtedly still be questions around how this will be made possible. Connectus Utilities’ Net Zero project manager Lee Ackerman discusses his thoughts and where the utilities sector will play a role.

When we look at the new strategy aims, it is good to see the investment earmarked for renewable energy such as solar, wind, nuclear and hydrogen. It appears the UK is still wanting to drive forward a more self-sustaining future, by boosting these alternative methods.

In order to support this drive, there are continued energy adjustments expected in housing, to reduce consumption and encourage cleaner sources. Much of this will also be the same for businesses, with the addition of strict targets to meet within environmental and social governance (ESG) and the energy savings opportunity scheme (ESOS) requirements.

Many of the points outlined in the strategy will appear familiar, as we have seen them discussed and in action over the past few years. However, there are some newer additions that will be interesting to watch unfold, such as the investment in hydrogen as a source of energy for heating, and what this will mean for gas networks.

Overall, it does appear we are moving in the right direction, but it will all come down to a number of critical factors.

Grid expansion

The strategy’s emphasis on clean energy means significant grid upgrades will be required to accommodate the increasing influx of renewable sources like solar and wind. My biggest concern is planning restrictions and infrastructure to meet this.

Discussions should focus on how to enhance grid capacity, flexibility, and resilience to handle intermittent energy flows, and the government’s latest Planning and Infrastructure Bill is a positive step towards this. Implementing smart grid solutions will be vital for optimising energy distribution, improving efficiency, and enabling demand-side management. This includes considering advanced metering infrastructure, digital control systems, and data analytics. Battery storage and other energy storage technologies are also essential for balancing supply and demand, especially with fluctuating renewable energy production. In terms of what more we want to see from the full strategy in June – the planning part will be integral.

Decarbonisation of operations

It will be important for businesses to really consider their utilities and reduce their carbon footprint by transitioning to low-carbon fuels, improving energy efficiency in their facilities, and minimising gas leaks. This includes addressing the embodied carbon within infrastructure projects, so that emissions can be reduced throughout the supply chain by making decisions around utilities. This could be through sourcing sustainable materials, adopting low-carbon construction methods, and promoting circular economy principles. The role of green technologies here will be important in mitigating emissions, but this is hugely reliant on feasibility, cost-effectiveness and scalability.

Enabling the Net Zero transition

Over the next five years, one of the biggest changes we are likely to see is the increase of electric vehicle (EV) charging points and a focus on reducing emissions from cars. The UK utilities industry has a crucial role in supporting the widespread adoption of EVs, outlined in the strategy, by expanding charging infrastructure and ensuring grid stability.

This includes planning for increased electricity demand from EV charging and developing smart charging solutions. In addition, transitioning to low-carbon heating solutions, such as heat pumps and district heating networks, is essential for achieving net zero. This will mean identifying opportunities to facilitate heat decarbonisation through infrastructure investments and customer incentives. However, while promoting energy efficiency among customers can reduce overall energy demand and contribute to Net Zero goals, there is still the challenge of whether people feel they can justify the cost.

Looking ahead

Overall, there are certainly some positive points to be taken from the 10-Year Infrastructure Strategy as it stands, however it will really come down to the way we put it into action. In order to drive progress, an independent body of experts could be the way to keeping industries united by the same goals over the coming decade. Not only will this ensure collaboration, and more robustness, but it will hopefully help to avoid those delays that have been so detrimental to our progress.

In addition, it will be crucial for the utilities sector to stay informed about the evolving government policies and regulations related to Net Zero and infrastructure development – particularly when it comes to financial viability. The Strategy, while certainly needed, can only be carried out through opportunities to access funding and incentives for net zero projects. If and when these are made available, it will important to explore available mechanisms and then be able to develop strong business cases for these projects to go ahead.