Geoff Versteeg
Senior Partner, Head of UK Energy & Infrastrucure, Roland Berger
Houda Ougaddoum
Principal, Energy Transition/ Value Creation, Roland Berger
A fragmented UK supply chain could fuel significant economic growth with targeted action from the Government, investors and corporate organisations ahead of ED3.
UK electricity demand is expected to grow by 2-3x by 2050 as transport, heat and industry electrify, rising to as much as 760 TWh in NESO scenarios. Grid investment must step up dramatically: industry and Ofgem estimates suggest £170–210 billion in electricity networks by 2050, the largest expansion since the 1960s Supergrid.1
SMEs form the supply chain’s backbone, delivering transformers, switchgear, cables, protection relays and substation automation. Transformer and switchgear player Brush is a great growth story: investment to expand capacity and capability drove revenue to £150m over three years, culminating in Greenbelt Capital’s acquisition to fund the next growth phase.2 Yet most UK supply chain players don’t have the clarity needed to invest at the scale and pace required.
Necessity of scaling domestic supply chain
“Without targeted action from Government, investors, Ofgem and network operators, much of the net zero spend will flow to overseas OEMs rather than creating capacity, capability and high-value jobs in the UK,” says Geoff Versteeg, Senior Partner, Roland Berger.
The ED3 price control (2028-33) is make-or-break. Ofgem must provide certainty on network investment and funding mechanisms so the supply chain can scale now. “We must leverage the learnings from the Transmission price control and enable distribution network operators to create greater commitment and certainty with their suppliers now,” asserts Versteeg.
Distribution companies must also step-up. “Qualifying as a supplier takes significant investment, these are multi-year framework agreements. We cannot compromise on quality, but DNOs need to evolve procurement practices to operate more quickly and flexibly,” says Houda Ougaddoum, Principal, Roland Berger.
targeted investment can catalyse hundreds of thousands of high-value jobs and ensure the energy transition is truly ‘built in Britain
Government support needed
Government initiatives like Great British Energy (£1bn “Energy Engineered in the UK” programme for domestic manufacturing),the Energy Supply Chain Taskforce and National Wealth Fund represent important first steps.3 However, they must be underpinned by a focused national supply chain strategy, explicitly prioritising high-value segments to build competitive advantage while strategically leveraging global supply chains elsewhere. Building capability across every value chain element risks diluting impact by spreading public and private capital too thinly.
Roland Berger works across the ecosystem, advising grid operators, SME equipment suppliers, large corporates and private investors to accelerate growth and unlock investment at scale. “With the right support and prioritisation, targeted investment can catalyse hundreds of thousands of high-value jobs and ensure the energy transition is truly ‘built in Britain,'” concludes Versteeg.
[1] EnergyUK. Net Zero facts and stats. https://tinyurl.com/mv43aaej.
[2] BRUSH. BRUSH Group to be acquired by energy investor Greenbelt Capital Partners. https://tinyurl.com/mr42hpsx.
[3] Great British Energy. (2025). Major boost for UK clean energy supply chains. https://tinyurl.com/5a4mzshx.
