A new report by Corporate Leaders Group UK shows electrification is critical to UK prosperity, jobs and energy security.
Download the full report on the CISL website.
The UK is entering a period of heightened geopolitical and economic uncertainty, marked by volatile global energy markets, supply chain disruptions and increasing pressure to strengthen domestic resilience. Recent shocks have exposed the risks of continued reliance on imported fuels. In this context, electrification offers a strategic pathway to enhance economic performance, energy security and long-term competitiveness.
This report by Corporate Leaders Group UK (CLG UK) and funded by We Mean Business Coalition, compares three alternative development pathways for the UK against a current policies baseline using macroeconomic modelling by Cambridge Econometrics:
- an electrification-led pathway
- a mixed technologies pathway
- a fossil fuel-led alternative
The report sets out the case for electrification as well as highlighting the key barriers that must be overcome in order to electrify.
Key takeaways:
Taken together, the evidence presented in this report suggests that electrification is not only essential for meeting climate targets – it is a strategic economic choice. A faster and more co-ordinated transition to electrification can deliver stronger growth, greater resilience and improved energy security for the UK.
Compared to the alternative scenarios, electrification:
- Drives higher GDP growth, boosts productivity, and supports sustained investment in domestic infrastructure and clean technologies. By 2050, the UK GDP would be over one percentage point larger in the electrification-led scenario than if we continue current policies.
- Brings significant employment benefits, creating around 250,000 more jobs than current policies by 2050 in sectors including construction, manufacturing and services.
- Improves the UK’s energy security, by reducing dependence on imported oil and gas and lowering exposure to volatile global markets and price shocks.
Recommendations to UK government:
- Reform energy pricing to reduce system costs and enable consumers to benefit from low-cost renewable electricity, strengthening the incentives to fuel switching.
- Reduce upfront costs through targeted financial support, innovative financing models and risk-sharing mechanisms.
- Accelerate infrastructure investment through improved planning, stronger demand signals and enhanced system co-ordination.
- Expand access to finance and reducing risk through public guarantees, standardisation and clearer investment frameworks.
- Build workforce capability and improving information to support confident adoption of electrified technologies across households and businesses.
- Support industrial transition through targeted policy measures that address competitiveness, supply chain constraints and system integration challenges.
Electrification is a pathway to a stronger, more resilient UK economy. With the right actions, the UK is well placed to capture these benefits and position itself competitively in an increasingly electrified global economy.
Download the full report on the CISL website.
Eliot Whittington, Chief Systems Change Officer, CISL, said: “The UK has a choice of energy futures, and this analysis sets out the clear numbers. A clean power-based energy system is cheaper overall, better for the economy, better for jobs, better for energy security, and better for the climate. Of course, there are real discussions to be had about how best to implement the change, but clean electrification is good for Britain, and we should work out how we best move to a clean power future.”
This work was funded by We Mean Business Coalition as part of the Electric Advantage programme. Electric Advantage is a multi-year program focused on spurring industry action, reforming regulations and driving investment in electrification to accelerate us all toward a cheaper, safer, healthier future.