Is it time for a Transmission Industry Association?
Matthew Knight
Making sense of the energy transition with a focus on policy, regulation and markets to deliver a clean power system for Great Britain.
One of the things that made offshore wind successful in the UK was the role of RenewableUK as a forum for all parts of the industry to come together on shared issues.? Indeed, part of the origin of the Offshore Wind Industry Council was recognition by government that it needed to be part of a conversation which was already happening at Renewable UK. ?The convening power and safe space for collaboration created by a good trade association adds value to an industry.
The GB transmission industry faces significant changes.? The move from market driven to planned grid, led by a new National Energy System Operator. And the need to ramp up in scale to deliver the Clean Power Mission.? This is a new situation that requires new ways of working including much greater collaboration.? For example, on issues such as growing the workforce at least two or three times as big as today in the next five years.?
But the transmission industry is fragmented and so are its trade bodies.
The customer side of transmission in GB is split. Regulated Transmission Owners, responsible for about half of the total investment, are represented by the Energy Networks Association.? The other half is customers who develop offshore wind who build their own grid connections, and some Interconnector owners.? They are often members of other trade associations Energy UK and Renewable UK.
Much of the supply chain for grid is represented by BEAMA, but its membership does not include EPC contractors or the ‘blue collar’ resource providers who deliver a significant part of the site workforce.
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The split between customers and suppliers, dates from privatisation when the Electricity Council split into what became the ENA and Energy UK and an era when BEAMA members did a lot more manufacturing in the UK.
The ENA represents regulated businesses which have unique issues that are not faced by other private companies.? However, it recently lost its gas network members (see my post) so there is a need to reconsider its role.
Government has chosen to work with industry via trade associations on parts of its Transmission Acceleration Action Plan.? The ENA has a role in standardisation and separately BEAMA in supply chain.? However, each of these topics involves both parts of the industry.
The UK is in a global competition for supply chain and all of us in the industry know we must increase the workforce together.? We can’t all fish in the same pond and no one company can train people in the numbers we need.? We need a forum where all parts of the industry can work collaboratively on these challenges.
The transmission trade association landscape was born in a different era.? Our transmission industry urgently needs to find a common voice and a unifying home where we can develop and act on clear answers to common industry questions.? No one needs yet another trade association, but we do need the incumbents to find a way to get much closer together.
Principal Consultant and Proprietor at Advanced Ultra Power Transmission Consultancy (AUPTC)
5 个月Great. Will try to understand. AUPTC bidded for UK grid augmentation Consultancy with ATKINS but lost in last round pricing among 4. I think it is a loss of opportunities for UK grid, AUPTC and ATKINS to work together.
Transformation Leader at HVDC Technologies Ltd
5 个月Insightful. Thanks Mattew.
Energy Vectors | Digitisation Decentralisation Democratisation | Electricity Networks & Offshore Grid
5 个月Very much agree Matthew. There needs to be a lead to bring together the thinking and innovation that is in the industry. There are lots of challenges to be solved, but which are readily achievable. All whilst the industry (transmission & distribution grids) go through more significant changes.
?? Your Friend in Energy Sector ..... Turning Industry Shifts into Opportunities
5 个月Great post, Matthew Knight! The transmission industry is at a pivotal point, and I fully agree with many of your insights. Here are a few thoughts to build on them: Unified efforts are critical: With the National Energy System Operator (NESO), fragmentation is no longer viable. A collective approach is key to tackling workforce growth and supply chain competitiveness more effectively. Industry collaboration: The offshore wind example is spot on. As the energy transition evolves, the transmission industry needs a unified voice, something current associations in silos struggle to provide. Not "another" association, but more unity: We don’t need more trade bodies, but a rethinking of the structure. Closer collaboration between incumbents will help align all parts of the industry—transmission owners, developers, and suppliers-toward common goals. Workforce challenge: To meet the Clean Power Mission, we’ll need unprecedented collaboration in growing the workforce. Global supply chain competition: As the UK competes globally, cohesion is crucial. Splitting efforts weakens us in this race. Thoughts, Philip Sellwood CBE, Nina Skorupska CBE FEI, Trevor Hutchings (FIEMA, DipIoD, CertIoD)?
Non Executive Director at Approved Power Services
5 个月Hi Matthew, long time no see! I’m not sure about what form a new collaboration forum will look like but I do think one is needed, urgently. The challenges facing the Electricity Supply Industry are clearly immense for all work streams and trades including but not limited to Design and Engineering, effective Operational Delivery, logistics and Transport, whilst maintaining and improving all SHEQS matrices. There is a clear need to start exploring new ways of working more collaboratively. A new model that will drive equitable visibility of defined revenue streams for every partner, giving confidence to make the significant levels of investment that will be required in time and money to create and fund new development plans and schemes that will attract, train and retain the people with the skills and attributes that are needed. Training and development is one key area, but there are clearly many others that will require consideration.