The global energy sector is under increasing strain as demand surges while infrastructure struggles to keep pace, according to the Womble Bond Dickinson (WBD) Energy Outlook 2026. The report, based on insights from over 650 energy industry leaders, investors, and consumers, paints a picture of a sector grappling with rising costs, grid constraints, and evolving government policies.
While global energy capacity is projected to grow by 17% over the next 12-24 months, the United Kingdom is lagging slightly behind, anticipating growth of 16%. This discrepancy highlights specific challenges within the UK energy market, particularly concerning the speed of infrastructure development and project approvals.
A significant hurdle for UK energy projects is the persistent issue of grid connection delays. Nearly two-thirds of UK firms surveyed identified these delays as their primary barrier to growth. This is despite ongoing efforts to reform the grid connection process. Faced with these bottlenecks, companies are diversifying their strategies, moving beyond solely pursuing greenfield projects to incorporate upgrades to existing infrastructure, mergers and acquisitions, strategic partnerships, and retrofit initiatives.
The report also reveals that UK energy projects encounter more community opposition – often referred to as “nimbyism” – than projects in other regions. Over 42% of UK firms reported delays due to local resistance, significantly higher than the global average of 32%. This suggests a need for more effective stakeholder engagement and communication strategies to address public concerns and build support for new energy infrastructure.
The WBD report doesn’t simply identify problems; it offers recommendations for accelerating project delivery and mitigating risk. These include fostering early and collaborative planning with regulators and local communities, building adaptable systems to navigate policy and regulatory changes, designing projects with investment appeal, establishing robust dispute resolution mechanisms, and leveraging artificial intelligence (AI) to optimize asset management and decision-making. Underpinning these strategies is the need for strong governance and accountability frameworks.
Chris Towner, Partner and UK Energy Sector Leader at WBD, emphasized the urgency of the situation. “The findings from our UK survey respondents make for worrying reading amid the rapidly approaching 2030 energy decarbonisation target,” he stated. “However, they will be no surprise to those in the industry: grid connection delays, rising project costs, and community opposition are consistently holding back capacity growth.”
Towner points to untapped efficiencies within the existing energy system. “Fortunately, we are sitting on significant untapped efficiency,” he explained. “Smarter use of existing infrastructure, combined with better data insights and AI-driven optimisation – including by energy-intensive consumers themselves – could transform how we balance the grid and unlock new capacity. Through agile project structures, early stakeholder engagement, and strategic use of technology, UK developers have a clear opportunity to transform these challenges into cleaner, more resilient, and investable energy.”
The broader global context, as highlighted by other recent reports, reinforces the pressures facing the energy sector. ING THINK’s Energy Outlook 2026 notes an “abundant supply amid a challenging transition,” suggesting that while resources are available, effectively navigating the shift to cleaner energy sources is proving complex. This transition is further complicated by a slowing global economic outlook, as identified by EY, which points to persistent supply shocks impacting economic growth.
The Deloitte 2026 Renewable Energy Industry Outlook suggests a positive trajectory for renewables, but even this growth is contingent on addressing infrastructure limitations and streamlining project approvals. The report underscores the need for significant investment and policy support to fully realize the potential of renewable energy sources.
The WBD report’s focus on the UK’s specific challenges – grid connection delays and community opposition – is particularly relevant given the country’s ambitious decarbonization goals. Successfully navigating these hurdles will be crucial for the UK to meet its climate targets and ensure a reliable energy supply. The report’s recommendations for proactive planning, stakeholder engagement, and technological innovation offer a roadmap for addressing these challenges and unlocking the potential of the UK energy sector.
The convergence of rising demand, infrastructure constraints, and economic headwinds creates a complex landscape for the global energy sector. The WBD Energy Outlook 2026 serves as a critical assessment of these challenges and a call to action for industry stakeholders to prioritize efficiency, collaboration, and innovation to ensure a sustainable and resilient energy future.
