Research from Centrica Business Solutions shows that nearly three quarters (72%) of UK and Irish businesses are delaying major energy decisions while waiting for greater certainty.

The Power Paradox report, based on a survey of 500 organisations across the UK and Ireland, reveals how businesses are struggling to balance decarbonisation ambitions with rising costs, resilience concerns and growing uncertainty across the energy landscape.

The research suggests businesses understand the need to modernise infrastructure, strengthen resilience and accelerate decarbonisation, but volatility and infrastructure uncertainty are slowing progress and delaying action.

Colin Brown, Operations Director at Centrica Business Solutions, said: “Businesses are under pressure from every angle. They are trying to decarbonise, manage costs and strengthen resilience at the same time, all while operating in an increasingly volatile environment.

“The challenge is no longer ambition. Organisations understand the need to transform their energy strategies, but uncertainty around infrastructure, investment and market conditions is making it harder to act decisively.”

The report identified three key paradoxes businesses are now navigating:

  • Businesses need to experiment more – while taking less risk

Organisations are increasingly willing to embrace innovation, with more than eight in ten (81%) saying they are open to experimenting with new technologies to support long-term energy transformation, up from 58% in 2025.

Energy innovation is becoming a growing board-level priority, with 69% of businesses saying rising costs and resilience risks are pushing the issue higher up the leadership agenda. Yet despite the need to move faster, many are delaying the key decisions that will make the most difference.

The report also highlights the growing role of AI in energy management, with 41% believing that within three years AI will be responsible for most operational energy decisions with minimal human input.

  • Businesses must cut carbon – while controlling costs and maintaining resilience

More than two thirds (67%) of businesses say they are taking a holistic approach to balancing cost, carbon and resilience decisions.

Yet organisations continue to face significant barriers to progress, with 30% admitting they’re unlikely to meet their 2030 emissions targets. Technology complexity (34%), geopolitical instability (34%) and grid and infrastructure constraints (32%) were identified as the biggest obstacles preventing a more effective energy strategy.

At the same time, improving investment confidence and access to high-quality energy data have emerged as major priorities, with 64% citing both as critical focus areas over the next 12 months.

  • Businesses need faster transformation – but many lack the skills and structures to deliver it

Organisational challenges are becoming just as significant as technological ones. Two thirds (66%) of businesses say internal resistance to change now poses a bigger threat to energy strategy than technology or funding.

In response, many are increasingly focusing on collaboration and external expertise. Nearly eight in ten (79%) are implementing cross-functional energy teams to improve decision-making, while 69% are already using external partners to help fill skills gaps and support implementation.

Financial flexibility is also increasingly appealling, with 66% saying they prefer funding models such as Power Purchase Agreements and Energy as a Service over traditional CAPEX-based investment.

The report recommends three key actions for businesses looking to accelerate progress:

  • Build hybrid resilience by combining grid supply with on-site generation, storage and optimisation technologies to reduce exposure to volatility and infrastructure constraints.
  • Turn innovation into disciplined experimentation through scenario modelling, pilot projects and specialist expertise that can support more confident investment decisions.
  • Redesign operating models to embed change by improving collaboration, clarifying accountability and empowering cross-functional teams to accelerate delivery.

Learn more: https://www.centricabusinesssolutions.com/

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