The UK’s power and utilities sector is undergoing a major transformation in pursuit of a sustainable future. Jamie Roberts shares our Ones to Watch report which explores industry trends and the leading companies in the sector.
The power and utilities sector is playing a pivotal role in modernising UK infrastructure and accelerating the transition to Net zero. This transformative industry, backed by significant investment, has the mission of upgrading and adapting UK energy and utilities infrastructure, after decades of underspend.
Download our Power and Utilities: Ones to Watch 2025
With growing pressures associated with energy and water security, affordability, and decarbonisation being met with record levels of investment, the UK power and utilities sector is being reshaped on an unprecedented scale.
Transformation of the UK’s power and utilities sector
The UK’s power and utilities sector is transforming to meet net zero targets, driven by record investment and innovation - adapting to solve key issues including energy and water security, energy transition, and affordability.
Key insights and contributors
Opportunities and challenges
There are record levels of investment going into the power and utilities sector, driven by the need to support the Government’s decarbonisation targets and accelerate digitalisation. Historical underspending on infrastructure has created strong demand for large-scale upgrades. However, this surge in demand is outpacing supply, making it challenging to scale quickly enough to match the pace of investment.
Richard Muckle, Investment Director at IK Partners, shares his experiences of operating in this environment, and highlights opportunities in the sector, including growing demand for battery energy storage systems (BESS), low-disruption infrastructure solutions, and smart networks. He also discusses how these influences will impact M&A activity, and the key value-drivers within the sector.
Powering growth through M&A
Several buy-and-build specialists are contributing towards the ongoing M&A activity in power and utilities, with more expected across the remainder of 2025.
OCU Group is a leading energy transition and utilities infrastructure service provider. Mathew Edwards, M&A Director, shares insights into OCU’s successful buy-and-build acquisition strategy. He explores how the strategy has evolved to align with the company’s broader goals, what qualities define an ideal target, the importance of post-deal integration, and what’s next for OCU Group.
Strong fundamentals and market dynamics are driving investor interest in the sector. In this video, Jamie shares insight on the M&A landscape.
Government policy and regulation
Several UK Government policies and initiatives will significantly shift the power, utilities, and infrastructure sectors. These are focused on sustainability goals, repairing and modernising infrastructure, and enhancing energy security:
- The Clean Power 2030 Action Plan, to support transition to a sustainable future
- Ofgem reform of grid connections, following an application surge in recent years
- The Planning and Infrastructure Bill, to expedite infrastructure development and fast track up to 150 major infrastructure projects during the current parliament
- House-building initiatives, tied to the broader infrastructure strategy
- Establishment of Great British Energy, to make the UK a clean energy superpower by 2030
Andy Boak, one of our consulting partners, specialising in public services, outlines the key initiatives shaping the sector.
“Ambitious Government targets in relation to energy and critical infrastructure present huge opportunity for the industry.”
For more insight and guidance get in touch with Jamie Roberts and Usman Malik.
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