15 October 2024

The UK stands at a pivotal moment that could define its role as a global leader in delivering a sustainable energy transition. To realise this potential, the Labour Government must embed a strong focus on cutting through regulatory barriers and enable robust partnerships with the industry—this ought to be at the very core of Starmer’s ‘change’ platform. 

The drive of projects like GB Energy and the push to bring buses under local control demonstrates the UK’s commitment to decarbonise and innovate. However, these ambitious plans demand substantial financial backing, especially in an era where fiscal tightening dominates the Treasury’s narrative. The answer to this conundrum lies prominently in private sector financing, where the UK can position itself as an attractive and healthy environment for investment. 

Recently, Nicholas Beatty, Co-Founder Director of Zenobē had the pleasure of hosting Rt Hon Steve Reed MP, Secretary of State for Environment, Food and Rural Affairs, at Arriva’s Brixton depot. During the visit, they explored how buses serve as essential connectors for local communities, driving productivity and fostering local growth. They delved into the significance of leveraging both public and private funding to create valuable community additions, including the development of efficient bus networks. While attracting finance is indeed crucial, the true differentiator for governments is how they strategically allocate and utilise these funds to maximise the benefits. 

Together with Arriva, Zenobē has electrified the historic Brixton tramshed, deploying a fleet of 22 electric buses. This initiative has yielded substantial reductions in operational costs and emissions, further highlighting the financial and environmental value of such projects. Aided by strategic private finance, we provide a comprehensive battery management service for these buses, mitigating risks and enabling the operator to develop the clean infrastructure it needs. This visit highlighted the mutual benefits of industry and government collaboration as we discussed ways of overcoming barriers to fleet electrification—crucial for achieving national decarbonisation and clean air targets. 

The influx of private finance to Zenobē, exemplified by £600 million investment secured from KKR and a further c.£270 million investment by existing shareholder Infracapital, signals international confidence in the UK’s green vision. Earlier this year, Zenobē secured an additional £410 million in new debt, expanding its existing £241 million financing platform, which, at its launch, was the largest bus financing platform in Europe. This capital will support the deployment of over 2,000 electric bus vehicles throughout the UK and Ireland by 2026. However, to sustain and amplify this investment momentum, there is an urgent need to streamline energy and transport policies around electricity network charges and inconsistent bus subsidies. These measures will solidify the UK’s standing as a welcoming landscape for international investors. 

Electric buses provide significant environmental and financial gains. Yet, the realisation of these hinges on initial investments – facilitated by proactive governmental bodies and private investors. This is essential for advancing the government’s green objectives without straining public finances. 

Reinforcing the UK as a favourable investment environment requires government endorsement and elimination of red tape. By doing so, the vision of a fully electrified bus fleet transforms from a concept into an imminent reality, propelling the UK towards a sustainable and affordable transport system by 2030.