Seventy-five per cent of energy investors plan to pump capital into UK battery storage over the next 24 months, even as grid connection delays emerge as the single biggest obstacle strangling renewables deployment across Britain.
The contradiction sits at the heart of the energy transition.
A survey of 100 senior executives, financial sponsors and developers conducted by law firm Brodies in collaboration with data specialist Infralogic reveals an industry caught between soaring ambition and grinding infrastructure reality. Published on Thursday, the research maps where capital is flowing—and where it’s getting stuck.
Optimism about UK investment has rebounded sharply. Eighty-two per cent of respondents expect appetite for domestic projects to climb over the coming two years, buoyed by recent policy shifts under the current government. Yet the same investors identified grid capacity as the primary bottleneck preventing renewable projects from reaching financial close.
That hasn’t stopped dealmaking. Over the past 24 months, 88 per cent of those surveyed completed at least one majority-stake transaction. Three-quarters closed at least one greenfield investment during the same period. Globally, battery storage ranks as the top subsector for planned investment—a signal that flexibility and system stability now matter as much as raw generation capacity.
But 37 per cent of respondents continue to hold exposure to conventional energy assets.
The figure challenges the narrative of a clean break from fossil fuels. Clare Munro, partner in energy and infrastructure at Brodies, acknowledged the uncomfortable reality investors are navigating. “The energy transition is well underway, but it is not a straightforward process. What we are seeing in the market is a much greater degree of realism around how long the transition will take and what is required to deliver it. Investors remain committed to net zero, but they are increasingly focused on resilience, integration and security of supply alongside decarbonisation.”
She pressed the point further. “Even in the most optimistic scenarios, oil and gas will remain part of the energy mix for decades. Managing the manner of change is therefore essential. Running down existing capability before alternatives are fully in place risks undermining delivery, particularly in regions such as Scotland where skills and experience built over decades are transferable to low-carbon infrastructure.”
The Scotland dimension adds weight. The north-east of the country, built on oil and gas expertise accumulated since the 1970s, faces an uncertain transition. The report suggests the region remains positioned to anchor Britain’s energy future—but only if the shift from hydrocarbon extraction to offshore wind installation and grid infrastructure is sequenced carefully. Rush the rundown of conventional capacity, the analysis warns, and critical skills drain away before renewable projects can absorb them.
Internationally, investor attention has locked onto markets offering stable policy frameworks. The Asia-Pacific region and Iberia each attracted 47 per cent of respondents as the most attractive destinations for capital deployment. Europe’s offshore wind clusters registered as long-term opportunities, though planning complexity and supply-chain constraints continue to slow project timelines across the continent.
Keith Patterson, partner and co-head of renewables at Brodies, framed the shift in blunt terms. “Focus has shifted decisively from ambition to execution. The technologies required to deliver the transition are increasingly well understood, but deployment depends on credible policy frameworks, infrastructure readiness and the ability to finance projects at scale.”
The message from investors, he argued, is conditional. “Where there is policy clarity and realism, capital is available. That is evident in renewed momentum in areas such as offshore wind and storage, while internationally we see strong investor appetite in markets that combine scale with stable, predictable frameworks.”
That conditionality matters. Rising development costs and the labyrinthine permissions process rank among the leading obstacles to UK greenfield investment, alongside the grid connection queue that now stretches years for many projects. The enabling infrastructure required to support renewable generation at scale—battery storage, digital systems, upgraded transmission networks—is arriving slower than the generation capacity itself.
Geopolitical instability has sharpened focus on energy security. Recent global unrest reinforced the case for diversified energy systems that balance decarbonisation with resilience. For investors, that translates into portfolios that still include conventional assets even as renewable deployment accelerates.
The research, drawn from responses collected earlier this year, captures an industry in transition between two paradigms. The first—characterised by ambitious net zero pledges and rapid renewable auctions—dominated the years immediately following the Paris Agreement. The second, now taking shape, prioritises integration, system stability and managed decline of legacy infrastructure over speed alone.
Battery storage epitomises the shift. As renewable generation scales, the need for flexibility grows. Storage projects offer investors exposure to the transition without the planning and grid connection headaches that plague wind and solar developments. That 75 per cent of respondents plan UK storage investments signals where capital sees the clearest path forward.
Yet storage alone won’t solve the grid problem. Transmission infrastructure requires upgrading across Britain, particularly in Scotland where offshore wind capacity is concentrated but demand centres sit hundreds of miles south. The mismatch between where renewable energy is generated and where it’s consumed remains one of the transition’s most expensive challenges.
For Brodies, a top-50 UK law firm with more than 100 partners and 900 staff across offices in Scotland, London and Leeds, the research reflects conversations happening daily with clients navigating energy investments. The firm’s energy and infrastructure practice has tracked the sector’s evolution from niche renewables projects to multi-billion pound portfolios blending conventional and low-carbon assets.
The report’s title—’Evolution not revolution’—captures the prevailing mood. The transition continues, but expectations have moderated. Investors remain committed, but they’re pricing in delays, complexity and the persistence of conventional energy far longer than early forecasts suggested.
Whether that realism translates into faster deployment remains the open question. The capital is available, the technologies proven, the policy environment improving. What’s missing is the infrastructure backbone to connect it all—and the time required to build it is measured in years, not months.
