Focus United Kingdom: As more companies integrate technology into the way they work, their power demand rises, and this impacts which buildings they choose to occupy.
Power is becoming a determining locational driver. UK businesses and households spend some £55bn on power annually1 . As more companies integrate technology into the way they work, their power demand rises, and this impacts which buildings they choose to occupy.
Power generation throughout the UK is transitioning to become more sustainable. This is driven by the need to reduce carbon emissions, emphasised by the UK government’s commitment to achieve net-zero greenhouse gas emissions by 2050. At the same time an increased number of extreme weather events brought about by climate change will put power supplies under threat. In August 2019, for example, a lightning strike in Cambridgeshire cut off power to an estimated 936,000 homes.
The vulnerability of power supplies along with the pressing need to supply plentiful, sustainable and resilient energy brings new challenges and opportunities for investors.
1) Ofgem, State of the Market 2019, October 2019
First published 2 February 2021 on Mayfair Capital Blog.
Authors: Tom Duncan, Senior Associate - Research, Strategy and Risk, Mayfair Capital &
Fintan English, Research Associate - Research, Strategy and Risk, Mayfair Capital
