Energy in Flux: staying credible in a shifting policy landscape

The UK energy sector is moving fast and not always in a straight line. Just last week, Britain’s energy system operator NESO pulled back on hundreds of energy generation projects, to clear the backlog to make way for £40bn worth of new schemes that are considered the most likely to meet the 2030 target for a net-zero carbon system. Some wind and solar farms, once cutting-edge technology, are now considered ‘Zombie projects’, holding up grid connections for these new energy generators.

Policy is changing rapidly. In 2022, Boris Johnson described hydrogen as the “low-carbon superfuel of the future”. Less than four years later, major hydrogen projects have been scrapped as priorities shifted again. This is not new. Recent decisions to pause grid connections for hundreds of energy generation projects underline a wider issue: short-term policy resets affecting projects that require long-term planning and investment. For organisations making these long-term investment decisions, this creates uncertainty that goes beyond regulation.

Public scepticism is increasing around the Government’s net-zero agenda. With energy bills still high, affordability has overtaken net zero as the primary concern for many households. Recent research from YouGov finds that more two thirds of Britons now think that net-zero will push up, rather than ease, their costs. This perception is making it harder for organisations to secure and sustain public support for major infrastructure projects.

Long-term projects increasingly require maintaining confidence across government, investors, local communities, and consumers. Each group has different priorities, but all are sensitive to inconsistency and mixed messages.

This is where communications play a critical role. Organisations must avoid responding to every policy in isolation, which potentially could make them appear reactive and uncertain. Articulating clear, consistent narratives that resonates with stakeholders, including acknowledging cost pressures while setting out long-term benefits, helps businesses adapt to political change. Alongside this, firms should have a continuing level of engagement with stakeholders and policymakers, whilst understanding that the political and public mood can shift. When ‘uncertainty’ is the overarching theme, it is critical that organisations scan the horizon and prepare themselves for upcoming developments.

At Luther, we work with organisations operating in complex policy environments to help them navigate shifts and remain on the front foot as priorities evolve. To discuss how we support energy clients, contact enquiries@luther.co.uk