High costs block industry switch to electric

High electricity costs have emerged as the biggest barrier to industrial electrification, according to the government’s 2023 Call for Evidence.

Respondents reported that electricity costs are around four times higher than those of natural gas, making it challenging for many industrial sites to justify switching to electric power.

Almost 80% of respondents described financial barriers as “severe” or “extremely severe”.

Another major obstacle identified is the delay in securing upgraded electricity connections.

Many sites face waits of up to five years, significantly slowing progress toward decarbonisation.

These delays are expected to worsen as demand for grid connections grows to meet the UK’s net zero goals.