Energy sector lessons from the Three Lions

Almost a year ago, I posted about what the energy sector could learn from the success of the England women’s football team (https://www.dhirubhai.net/pulse/energy-sector-lessons-from-lionesses-ben-shafran/). So it’s only fair that I should try to do the same for the most sustainably-successful England men’s team.

1.???? Steadfast values, but flexible tactics. Gareth Southgate, like Sarina Wiegman, has embodied and instilled in the team a set of behaviours that have been consistent throughout his tenure. But the mechanics of what the team does have changed between tournaments, from game to game, and even within games. The former means the team is resilient to outside pressure; the latter means it adapts when things don’t work.

In the energy sector that means clarity about what we hold sacred in the energy transition: moving to a system that is better for people and for the UK economy, but it also means adapting the policies to new contexts (e.g. the role of markets vs. centralisation).

2.???? A positive message. Southgate, like Wiegman, took over a national team that was at a particularly low point. And, just like the manager of the women’s team, one of the first things he did is set out a positive message. This acts as a catalyst for others to give their best effort to the cause.

The Net Zero target can be a galvanising force. But if we want households, companies, investors, etc. to make big changes we need relentless focus on how the transition would lead to a system that is objectively better for everyone.

3.???? Identifying your rising stars, utility players and linchpin. Southgate has consistently given meaningful opportunities to promising young players. But he’s combined that with building the foundation of the team on unglamourous players that get the job done. And at the heart of the team throughout has been the captain Harry Kane.

To extend the metaphor to the energy sector: the National Energy System Operator looks to be key to almost every aspect of the transition. But radical transformation (and that’s exactly what the Net Zero transition is) requires innovators who can test their offerings, enter markets, and scale up fast. And we mustn’t forget the foundations of the system: vocational colleges, installers, code administrators and regulators all play an essential role even if their contributions aren’t always seen. ?

4.???? Knowing your place. Just like the women’s team last year, England’s men’s team lost a final to a better Spanish team. There’s no shame in that.

The UK economy is the sixth largest, accounting for 3% of global economic activity. That’s something. But it’s only a 6th of the size of China’s economy, and less than an 8th of the US. We don’t need to compete with the financial scale of the US Inflation Reduction Act or with China’s ability to dictate industrial transformation from the centre. We should focus on our strengths (digitalisation, flexibility, services) and recognise that we’ll benefit from global macro-trends (cost reductions in solar, EVs and batteries, etc).