UK top 50 law firm Brodies LLP has today published a new report, ‘Evolution not revolution: investment trends in the energy transition’, offering an in‑depth analysis of how investors, developers and advisers are navigating the next phase of the global shift toward net zero.
Drawing on research conducted in collaboration with Infralogic, with 100 UK‑based senior executives, financial sponsors, developers and general counsel surveyed, the report explores investment trends across renewables, grids, battery storage and conventional energy in both domestic and international markets. It paints a picture of a sector that remains firmly committed to decarbonisation, while increasingly focused on delivery, resilience and system integration.
The findings highlight sustained momentum in energy transition investment, alongside renewed confidence in the UK market following recent policy recalibration. At the same time, the report identifies ongoing constraints around grid capacity, planning complexity, supply‑chain pressure and geopolitical risk, all of which are shaping investment decisions.
Key findings include:
- Global dealmaking remains broad and active: over the past 24 months, 88% of respondents completed at least one majority-stake transaction and three quarters made at least one greenfield investment.
- Battery storage is a key area of investment: 75% of respondents plan to invest in UK battery storage in the next 24 months. Globally, storage ranks as the number one subsector for planned investment.
- Greenfield hurdles remain: Grid connection delays are the biggest bottleneck to renewables delivery. Rising development and construction costs and the complexity of permissions are among the leading obstacles to UK greenfield project investment.
- Commitment to conventional energy is crucial: alongside rising investment in renewables, 37% of respondents continue to maintain exposure to conventional energy assets, underlining the continued role of conventional assets within transition-focused portfolios.
- UK momentum is strengthening: Well over three quarters of respondents (82%) expect appetite for domestic UK investment to rise over the next 24 months.
- Overseas investment aligns with policy clarity: APAC and Iberia rank highest for attractiveness (47% each) with policy frameworks in these regions strengthening. Europe’s offshore wind clusters are significant long-term opportunities.
Commenting on the report, Clare Munro, partner, energy and infrastructure, at Brodies, said:
“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.
“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 report also examines the growing importance of enabling technologies such as battery storage and digital infrastructure, which are becoming central to project economics as renewable generation scales. Storage is identified as a key priority for investors in both the UK and overseas markets, reflecting the increasing need for flexibility and system stability.
Keith Patterson, partner and co‑head of renewables at Brodies, said:
“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.
“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.”
The report also considers the impact of global geopolitical instability on energy investment, noting that recent unrest has sharpened awareness of energy security and reinforced the importance of maintaining a resilient, diversified energy system.
For Scotland’s North‑east in particular, the findings underscore the need for a managed transition that retains skills, supports supply chains and aligns the timing of conventional and low‑carbon investment. The report suggests that the region remains well positioned to play a central role in the UK’s energy future, provided change is sequenced carefully.
The report is available to download via brodies.com/energy-transition