If the multitude of elections in 2024 have taught us one thing, it’s that energy is well and truly in the crosshairs of governments. Energy security, sustainability and affordability remain major issues and while this remains the case, policymakers will continue to focus their attention on the sector.

In the UK, the new Labour Government was quick to make its mark. Some policy decisions have been very welcome, the £500m boost for AR6 of the Contracts for Difference (CfD) renewable energy scheme and the lifting of the de facto ban on onshore wind development in England being two standouts.

Other moves have given the sector real and understandable cause for concern. North Sea operators are still reeling from the removal of the Energy Profits Levy (EPL) investment allowances, and the potential knock-on impact on spend should alarm us all. There is currently a very real risk that the UK’s energy supply chain, the foundation on which a just transition will be built, will up sticks and chase incentives elsewhere.

Since the election, much has been made of Sir Keir Starmer’s flagship project, GB Energy and where it might be housed. There has been some clarity in this regard; it is welcome that Aberdeen, a place with unmatched energy expertise, has emerged as frontrunner for host city. What we need now is greater detail on what GB Energy will do in practice and how it will support the sector to deliver a transition that is managed and fair.

Recent research revealed that the UK needs to triple the rate at which it installs offshore wind farms to hit the previous government’s target of having 50GW operational by 2030. According to Labour’s manifesto, this target is to be increased to 60GW.

And it’s not just the wind sector that is up against it. Government wants to capture between 20-30 MtCO2 per year and have up to 10GW of hydrogen production capacity by the end of the decade, yet on both fronts the UK is barely out of the starting blocks.

Reaching these goals will require a step change in delivery and GB Energy as a standalone body doesn’t hold the keys. It is clearly a welcome development, but the current timescales demand close partnership with the energy sector from the get-go.

Enabling investment into projects is vital, but success will also require the Government to prioritise the supply chain to tackle emerging bottle necks, especially arounds ports, and the skills shortages that have recently plagued the sector. The scope for achieving a just transition is limited, and it will only narrow further unless these fundamental issues are taken in hand.

Xodus is a business with roots firmly in Aberdeen and a responsible energy future at its core. We are committed to working with government to make the energy transition work, but as a consultancy, we also chase certainty and stability.

Anything that facilitates better collaboration is welcome and GB Energy can be that medium, but it is equally as important that ministers create an enduring environment that allows companies to take long-term decisions with conviction.

Steve Swindell is CEO, Xodus Group

Agenda is a column for outside contributors. Contact: agenda@theherald.co.uk