Exploring the Future of Energy

Terry Noble, Partner, Odgers Interim, and Sarah Burke, Consultant, Odgers Berndtson, recently hosted an evening that explored the future of energy. The event featured expert speakers and industry leaders, Nazo Moosa, Managing Director for Paladin Capital's European Operations and Charles Wood, Deputy Director of Policy at Energy UK, who shared their insights on the challenges and opportunities within the sector.

Insights from Nazo Moosa

Nazo Moosa shared her perspective on the topic "How Do We Fuel Our Future?" She highlighted the complexities of the energy transition and the need for substantial investment in new technologies. Nazo discussed the performance of the energy transition sector, noting that while there has been significant capital inflow, the growth rate has slowed, and investments in critical technologies like hydrogen and long-duration storage have decreased from 20-24% to 7.5% of total capital.

Importance of Public and Private Sector Funding

Nazo emphasised the importance of public markets, private investments, and public sector funding in driving the energy transition. She pointed out the challenges in the public markets, where the Energy Transition Index has underperformed the S&P and NASDAQ by about 50-60%. However, the MSCI Utilities Index is up by 20%, and some nuclear stocks have increased tenfold. She also discussed the role of the public sector, particularly in the US, and the potential for an "Apollo moment" to drive ambitious projects.

Policy Insights from Charles Wood

Charles Wood also addressed the topic "How Do We Fuel Our Future?" from a policy perspective. He provided insights into the policy landscape and the role of the energy sector in the UK's economic growth. He stressed the need for a fundamental shift in energy pricing to make electrification more attractive and affordable. Currently, electricity bills are about 20% policy and regulatory costs, while gas bills are only 2%. Charles highlighted the challenges faced by businesses and consumers due to high energy costs and the importance of clear support schemes from the government.

Strategic Planning and Investment Needs

Charles discussed the need for a strategic approach to planning and investment in the sector. He emphasised the importance of regional planning, network infrastructure, and the development of a skilled workforce to support the energy transition. Achieving net zero by 2030 will require about £40 billion of investment per year. Network infrastructure investment alone needs around £4.5 billion over the next five years, potentially delivering £4-11 billion in growth to the UK economy. He called for an end to policy uncertainty and the need for a clear and consistent approach to achieving net zero.

Engaging Panel Discussion and Q&A Session

The event included a panel discussion and Q&A session, where attendees had the opportunity to engage with the speakers. Key topics discussed included the role of oil and gas in the energy transition, the importance of bringing the public along in the journey towards net zero, and the need for innovation and investment in new technologies.

Key Takeaways and Future Directions

The evening highlighted the critical challenges and opportunities in the energy sector. The discussions underscored the need for collaboration, innovation, and a clear policy framework to drive the energy transition. The event provided valuable insights into the future of energy and the steps needed to achieve a sustainable and secure energy future.