Solihull (09/11/17) – The thriving energy sector in the Midlands employs 1 in 3 people in the industry nationally and contributes £5 billion a year to the UK’s economy, according to a new report released today. Energy in the Midlands Engine: Powering a New Energy Future maps out for the first time the economic contribution of the region’s energy industry, and sets out its potential role in a low carbon, flexible energy future.

Commissioned by Solihull-based UK Power Reserve, the leading provider of flexibility to the UK’s energy system, the report demonstrates the central role of the energy industry in the success of UK plc as the Government prepares to release its Industrial Strategy White Paper later this year. The research was conducted by Regeneris Consulting, a specialist economic development and regeneration consultancy.

The research focuses on the geographic area of the Midlands Engine, a swathe across the centre of England from The Marches on the Welsh borders to Lincolnshire on the east coast. The region is already highly specialised in energy, supporting 30,000 direct jobs in 535 businesses – the vast majority of which are small or medium sized organisations with fewer than 50 employees.

A further 77,900 jobs are supported by the energy sector’s supply chain, which contribute an additional £5.9 billion to the economy.

Key highlights from the report:

  • the Midlands Energy Sector supports 30,000 direct jobs, an increase of 27% or 8,200 jobs in five years (2010-2015);
  • in 2015, the region’s energy sector contributed £5 billion to the UK’s economy, or 30% of the sector’s total national output;
  • annual turnover for the region’s energy sector was £23.2 billion in 2015, having increased 29% since 2010;
  • the median salary for energy jobs in the Midlands (£39,800) is higher than the average for all jobs both in the region (£25,600) and nationally (£27,600);
  • the sector’s supply chain supports a further 77,900 jobs, generating an additional £5.9 billion for the economy;
  • the effects of 107,900 direct and supply chain employees in the sector reinvesting their earnings into the regional economy supports an additional 54,600 jobs and £3.1 billion of economic output;
  • in total, the energy sector in the Midlands Engine supports 162,500 jobs and contributes £14 billion to the UK economy.

This creates a strong foundation for the future of the Midlands energy sector, especially given the central role energy plays in all of the region’s Local Enterprise Partnerships strategic plans. Building on the proud industrial heritage of the Midlands, the energy sector is poised to play a central role as the UK moves towards an increasingly decentralised, flexible energy system in a low carbon, green economy.

UK Power Reserve has rapidly developed into the country’s largest flexibility provider since its founding in 2010, due to early recognition of the opportunities in clean energy. Its portfolio of 813MW includes a commanding position in battery storage, the linchpin technology of the smart flexible future – at 120MW, UK Power Reserve’s battery portfolio is one of the largest in Europe. The energy and momentum in the Midlands Engine creates the ideal springboard for even greater achievements.

Tim Emrich, Chief Executive Officer and Co-Founder of UK Power Reserve, said: “We are proud to be part of the Midlands energy success story, and to build on the industrial heritage that has powered the regional economy. We bring in the best and brightest talent from across the Midlands and beyond to drive our company, and our success today is a testament to their skill and commitment. We will continue to create jobs, partnerships and investment from our Solihull base, and drive the Midlands Engine towards a bright, flexible future.”

Julian Knight, Conservative MP for Solihull, said: “The energy industry has long been the beating heart of the Midlands and I am delighted to see its enormous contribution to local jobs and investment. As the report makes clear, each job supports additional employment in the wider economy, strengthening communities and the people who live and work in them. Innovative companies like UK Power Reserve are at the forefront of their industry, acting as a magnet for skills and investment, and I am determined that they continue to flourish.”

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About UK Power Reserve

UK Power Reserve is the leading provider of flexibility to the UK energy system. Our 813MW portfolio of low carbon, decentralised assets include 120MW of battery storage, one of the biggest in Europe. With rapid response, low cost assets located close to centres of demand, we are improving competition and delivering value to consumers. An innovative, disruptive voice in energy, UK Power Reserve is advancing its ambitious growth plans in the UK and beyond.

For more information, please contact Hyun Young Lee at communications@ukpowerreserve.com or +44 (0)7769 647 051.

www.ukpowerreserve.com | @UKPowerReserve

 

About Regeneris

Regeneris is a leading economic and social development consultancy.  It provides independent, high quality economic and social research, analysis and advice to the public, private and non-profit sectors.

Regeneris is passionate about delivering an innovative and robust approach, working in collaboration with clients and partners to develop a range of bespoke services and advice.  It facilitates and enables the implementation of economic and social change and growth across diverse sectors. Regeneris draws on a wealth of industry and policy experience, based on rigorous quantitative and qualitative evidence.  It is able to inform decision making, challenge strategies, transform communities, inform growth and design lasting socio-economic imprints across a wide range of sectors.

You can download the full report here:

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