Scotland’s energy sector has a significant opportunity to anchor the next phase of the UK’s net zero transition, according to a major new report from Brodies LLP — provided the shift from conventional to low-carbon infrastructure is managed carefully and sequenced to retain critical skills and supply chain capability.
The report, Evolution not revolution: investment trends in the energy transition, published today by the UK top 50 law firm, draws on research conducted in collaboration with Infralogic, surveying 100 UK-based senior executives, financial sponsors, developers and general counsel. Its findings point to sustained and growing investor confidence — with 82% of respondents expecting appetite for domestic UK investment to rise over the next 24 months.
The research reveals that global dealmaking in the energy sector remains highly 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 has emerged as the standout growth area, with 75% of respondents planning to invest in UK battery storage in the next 24 months and storage ranking as the number one subsector globally for planned investment.
Internationally, APAC and Iberia are identified as the most attractive markets (47% each), with Europe’s offshore wind clusters highlighted as significant long-term opportunities — an area where Scotland has established strengths.
Despite the optimism, the report is candid about the obstacles to delivery. Grid connection delays remain the biggest bottleneck to renewables development, while rising construction costs, planning complexity and geopolitical risk continue to shape investment decisions. Some 37% of respondents also maintain exposure to conventional energy assets, underlining the enduring role of oil and gas within transition portfolios.
Clare Munro, partner in 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.”
Keith Patterson, partner and co-head of renewables at Brodies, added: “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.”
For Scotland’s North-east, the report’s conclusions carry particular weight. The findings reinforce the case for a managed transition that retains specialist skills, supports domestic supply chains, and aligns conventional and low-carbon investment timelines — positioning the region as a central player in the UK’s energy future.
The full report is available to download at brodies.com/energy-transition.
