WM2041 Actions

This is the region’s vision for energy across the region by 2030. It has been developed by Energy Capital, a regional, cross-sector partnership that has formed to address and overcome the structural issues with the UK energy system. It includes the following aspects:

• Reducing energy costs for our strategic industrial sectors to at least match those of our international competitors.
• Reducing the incidence of fuel poverty across our region by hitting current government targets for energy efficient housing five years ahead of schedule.
• Delivering the West Midlands’ share of national and global carbon budgets by reducing regional carbon emissions.
• Creating a regional energy infrastructure that adds £1bn to GVA by 2025 by putting the region at the leading edge of the global energy and transport systems transition.

The main delivery mechanism for this vision is Energy Innovation Zones (EIZs): local partnerships which are brought together to focus on the energy innovation and investment needs of their place. The first four pilot EIZs have already been established, and will act as a focus for energy systems investment of between £270m and £490m over the next 15 years.

There is a significant opportunity for the regional energy economy: the more we can generate, the less we need to import. Although the local energy sector contributes approximately £2.1bn of GVA to the regional economy, most of this is earned outside the region. Furthermore, it is dominated by companies like E.ON, who sell energy nationally. Businesses and households in the West Midlands spend £6.7bn annually on energy, and more on average than their European competitors. Over £960m is spent by the industrial and manufacturing sectors and an additional £540m by the remainder of the commercial and industrial sector.