Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
Issue link: https://fhpublishing.uberflip.com/i/813021
The Topic: Attracting investment ATTRACTING INVESTMENT THE TOPIC 10 | 21ST - 27TH APRIL 2017 | UTILITY WEEK utive of the Canada Pension Plan Investment Board, agreed that the move is a positive one for investors coming to the UK. "There's a tremendous amount of capi- tal right now that's interested in investing," he says, adding that having longer-term certainty for major projects not only makes them more attractive but there is a knock-on effect to other projects. The Institute for Civil Engineers' public affairs manager, Alex Green-Wilkes, says there is now a focus on delivery in the plan which is "apt" and will reassure investors. He says: "The new focus on helping to improve the delivery and performance of infrastructure projects, in particular by con- sidering the interdependencies of our net- works and their future resilience, is certainly welcome." The NIP is working hard to reassure inves- tors that major projects in the UK will still go ahead, and aims to provide them with the certainty that means they will continue to invest at competitive rates in the UK. I n July 2015, the newly elected Conservative government unveiled the country's latest National Infrastructure Plan (NIP), which included work worth more than £270 billion across the energy and water sectors. Energy is the largest sector featured in the NIP. It is worth £245 billion, according to the government, and accounts for 60 per cent of the national pipeline's total value. There are 56 programmes and 102 energy projects outlined as part of the NIP, includ- ing the Neart na Gaoithe offshore windfarm and the Dorenell onshore windfarm, both in Scotland. The NIP also includes one water project – the Thames Tideway Tunnel – and 28 water programmes worth more than £25 billion. The 28 programmes outlined include AMP6 work covering most of the water and sewer- age companies and water-only utilities in England and Wales. The infrastructure pipeline provides an assessment of planned investment in infra- structure, across both public and private sectors, to 2020 and beyond. It is hoped that this pipeline will enhance visibility and cer- tainty for investors and the supply chain and allow government to work more effectively to ensure that the UK's infrastructure needs are met. Chief secretary to the Treasury David Gauke said: "It is the largest and most com- prehensive pipeline the government has pro- duced and will provide greater certainty for investors and the supply chain, as well as helping us to improve our forecast of future skills needs." Mark Wiseman, president and chief exec- Community energy schemes are a burgeoning area for invest- ment. In the UK there are more than 600 community-owned renewable energy projects and the number is growing. Bristol Energy was one of the first to gain traction in the UK. In 2012, Bristol City Council suc- cessfully applied to the European COMMUNITY SCHEMES The UK has been slow to embrace community energy schemes, but the concept is now gaining traction. Investment Bank (EIB) to fund a feasibility study for the project. The council plans to allocate £1.6 million in cashflow support to enable the new energy com- pany to start trading this sum- mer. EIB provided half (around £70 million) of the capital, with the rest coming from private sec- tor investment. Community Energy Scot- land goes back further, being established in 2007. It is a regis- tered charity that provides local communities with assistance on green energy development and energy conservation. With an extensive portfolio of community energy projects under its belt, the group aims to: help communities become stronger, more self-reliant and resilient by generating their own energy and using it efficiently; offer education, finance and practical help; and provide a voice for communities who want a more secure and sustainable energy future in Scotland. There is also support coming from some of the UK's energy suppliers. Co-op Energy has pledged to have 60 power pur- chase agreements (PPAs) in place with community genera- tors over the next three years, as part of a new strategy. The supplier's community Overall, the NIP details £411 billion worth of refreshed infrastructure projects and programmes in sectors including water, energy, transport, and flood defence. There are 265 programmes and 299 projects in the pipeline. Sector Number of Number of Total value (£ million) Total value (£ million) projects programmes 2016/17 to 2020/21 Total pipeline Communications 1 7 15,528 15,546 CPS 0 2 14 14 Education 0 20 22,488 22,488 Energy 96 18 78,624 206,264 Flood 7 22 2,721 4,138 Health 13 19 2,886 2,943 Home Office 0 6 73 73 Housing and regeneration 5 13 12,916 12,916 Justice 1 43 1,528 1,528 Ministry of Defence 38 9 5,780 8,374 Police forces 10 19 1,239 1,257 Science and research 18 7 5,912 6,178 Science 123 128 91,929 138,331 utilities 20 76 59,213 74,812 Waste 7 0 538 538 NIPIF 2021/22 0 1 - 7,000 Total 339 390 301,388 502,399 THE NATIONAL INFRASTRUCTURE AND CONSTRUCTION PIPELINE, BY SECTOR What's the plan? The National Infrastructure Plan brings a welcome commitment to a pipeline of major projects, and energy and water have the most to deliver. ENERGY AND WATER Source: Infrastructure and Projects Authority