According to the survey of over 100 senior leaders making energy transition investments, with an estimated £9 trillion of assets under management, 96% invest in energy transition to meet their decarbonisation/net zero targets and 93% see energy transition as more of an opportunity than a challenge.

While nearly one third (30%) of respondents said they are highly confident that the UK will achieve net zero by 2050, two thirds (67%) of those surveyed are only moderately confident.

Asked whether the country will decarbonise its electricity system by 2030, 17% responded with high confidence, and two thirds (67%) said they are moderately confident.

Over half (55%) are highly confident the UK government will maintain its commitment to net zero, but only 8% are highly confident it is acting to effectively to drive the energy transition.

When asked whether they think the UK will overcome supply chain barriers to the energy transition before 2030, three quarters (75%) reported moderate confidence, with 13% highly confident. In addition, 84% said they are moderately confident the UK will develop the green skills needed for the energy transition by 2030, and just 10% said they are highly confident.

Netti Farkas-Mills, UK energy, resources & industrials insight lead at Deloitte, said: “The UK needs a resilient energy system to supply secure, abundant and clean energy at affordable prices for households and businesses.

“Achieving this will require capital investment, focused delivery and confidence and commitment from investors, industry and policy makers.”

Increasing energy transition investment: attractiveness, risk and policy

Investors list battery storage (82%), mature supply-side solar (75%), onshore wind (61%), offshore wind (58%), green hydrogen (64%) and grid infrastructure (61%) as the most attractive energy transition investments.

To stimulate investment in the transition, investors say they need faster policy delivery (80%) and a bigger and better grid (70%).

In terms of which factors relating to policy are most important to investors, faster planning and permitting approvals ranked highest (77%), followed by market support mechanisms (72%) and long-term policy stability (68%).

Asked to describe the key characteristics of an attractive investment opportunity, investors cite clear visibility of risk (67%), predictable cashflows (67%) and clear links to sustainability (64%).

Daniel Grosvenor, energy, resources & industrials leader at Deloitte, said: “Private investment is crucial to the success of the energy transition, and it’s clear investors are committed to the UK, but barriers remain.

“Faster, more coordinated and targeted policy delivery, and a focus on skills and supply chain are essential in building investor confidence. Combined with greater risk visibility and predictable cashflows for projects, these factors will ensure the UK can retain competitive advantage and reap the rewards of the transition.”