Closing the Gap: From UK Industrial Strategy Ambition to Delivery

Executive summary

A year after the UK’s Industrial Strategy was launched, industry broadly agrees with its direction and ambition. The focus on clean power, electrification and industrial competitiveness reflects both economic and environmental realities.

There are also clear signs of momentum. Investor appetite for clean energy remains strong, and businesses are actively exploring electrification, flexibility and low-carbon solutions.

Recent government announcements reinforce this direction and mark a clear acceleration in delivery. Measures to unlock new clean power, reform planning, land access and grid connections, and reduce exposure to volatile gas-driven electricity prices signal a decisive shift from ambition to implementation.

Electricity costs, grid access and policy clarity continue to shape how quickly projects move forward. Addressing these areas will be key to converting ambition into sustained investment and growth.

 

A strategy aligned with market direction

The UK’s Industrial Strategy set out a clear pathway to a low-carbon, increasingly electrified economy. Its focus on clean power, infrastructure and industrial transformation aligns closely with structural trends already underway across the energy system.

Electrification of industry, transport and heat is increasing, while renewable generation continues to scale rapidly. At the same time, demand for low-carbon solutions is growing, and greater system flexibility is becoming essential.

Electricity demand is expected to rise significantly over the coming decades, alongside increasing system complexity. In this context, the strategy provides a strong and credible foundation.

Recent policy updates underline this alignment and reflect growing recognition that delivery must now move faster. Rather than simply signalling long‑term intent, reforms are increasingly focused on removing the structural barriers that slow deployment.

The government’s Clean Energy Sector Plan reinforces this direction, with an ambition to increase clean energy investment to around £30 billion per year by 2035, signalling both intent and opportunity.
 

 

Accelerating delivery: key enablers

In this context, “delivery” refers to the pace at which projects move from policy ambition and investment intent into operational assets, from grid connections and electrified processes to deployed generation, storage and flexibility.

Delivering at pace depends on coordinated progress across policy, infrastructure and market participants, rather than any single actor. While progress is being made, three areas continue to shape how quickly ambition translates into delivery.

 

Power costs and industrial competitiveness

Electricity costs remain a key consideration for energy-intensive industries. Recent measures, including the British Industry Supercharger, have provided targeted support and improved competitiveness for some sectors.

At the same time, wholesale electricity prices remain closely linked to gas. Reducing exposure to gas‑driven volatility is becoming as critical as absolute cost levels, particularly for businesses making long‑term electrification and investment decisions. Recent proposals to reform wholesale market arrangements for existing renewables reflect this growing focus on price stability and energy security, and continue the focus on long-term competitiveness that will support both industrial retention and the transition toward electrified processes.

 

Grid access and infrastructure

Grid access is one of the most important enablers of delivery. While connection timelines have improved in some areas, delays remain a factor for many projects, particularly those involving electrification, storage or onsite generation.

Commitments to reform planning, land access and grid connection processes signal clear intent to accelerate infrastructure delivery and unlock projects already in the pipeline. Accelerating connection reform and infrastructure delivery will play a critical role in unlocking investment already in the pipeline and supporting future growth.

 

Policy clarity and long-term direction

Long-term policy clarity remains central to investment confidence. For many industries, decarbonisation involves significant capital decisions with long asset lifetimes.

Greater clarity on key areas, including the role of electrification alongside hydrogen, would support more confident and timely investment decisions.

 

A system evolving to support delivery

Alongside these structural factors, the energy system itself is evolving.

As renewable generation increases, flexibility is becoming more important in balancing supply and demand. This includes demand-side response, energy storage and more dynamic approaches to energy use.  

As clean generation scales, flexibility and optimisation are also becoming central to system resilience, security and the management of price volatility.

Alongside renewables and flexibility, firm low-carbon generation such as nuclear continues to play an important role in providing system stability and supporting electrification at scale.

Flexibility capacity is expected to grow significantly over the coming decades, supporting both system stability and cost management.

This shift is already influencing how businesses engage with energy, moving from passive consumption toward more active participation. In turn, this creates new opportunities to manage costs, reduce emissions and improve resilience.

 

From momentum to sustained growth

The UK has already established many of the foundations required to deliver its Industrial Strategy.

There is strong investor interest in clean energy and infrastructure, increasing demand from businesses for low-carbon solutions, and a sophisticated, evolving energy market.

The next phase is about building on this momentum. Continued progress in a small number of areas would help unlock further investment:

• Supporting long-term cost competitiveness for industry
• Accelerating grid connections and infrastructure delivery
• Providing clear, stable policy signals for key technologies

Together, these actions would help translate existing ambition into sustained growth, innovation and competitiveness.

 

Conclusion

The UK’s Industrial Strategy has set a clear and credible direction, and there are strong signs of progress across both policy and market activity.

Recent announcements mark a shift from direction to execution. As structural volatility persists and electrification accelerates, delivery is becoming the defining factor in energy security and competitiveness. Businesses that move early, securing clean power, flexibility and deeper market insight, will be better positioned to manage risk and complexity in a faster‑moving system.

 

About this perspective

As a major participant across the UK energy system, EDF works with a significant proportion of industrial and commercial energy users, as well as across generation, trading and system optimisation. This perspective reflects both policy engagement and practical experience of how projects are being developed and delivered in today’s market.

This aligns with EDF’s broader focus on supporting a secure, affordable and low-carbon energy system as part of the transition to an electric Britain.

 

Raghav Singh, Business Supply Director, EDF Business & Wholesale

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