March 18, 2025
The modernisation of the electricity grid is progressing rapidly and will continue to advance, regardless of how firmly the current Government upholds its pledge for net zero greenhouse gas emissions by 2050.
While opinions on the pace of this transformation differ, there is a general consensus on the necessity to decarbonise energy supply through renewable resources, increased electrification, and, despite the technical breakthroughs still needed, enhanced energy storage solutions. At the same time, energy demand is expected to surge, particularly to support the growing number of data centres essential for AI operations and the vast amounts of electronic information generated daily.
This evolution isn’t without controversy, primarily due to the hefty price tag—estimated at £58billion by National Grid Electricity Distribution—the potential disruptions from connection delays, and environmental concerns like the construction of pylons and habitat disturbance. However, these challenges extend well beyond the UK.
During last month’s Swiss Capital Markets event in London, executives from R&S Group shared insights into how their innovative products are transforming electricity supply across key global markets—fuelled by ‘decarbonisation, decentralisation and modernisation’.
In August 2024, R&S acquired Kyte Powertech, a manufacturer of distribution transformers, for €250million. Established in 1977, Kyte is familiar presence in the industry, frequently participating in UK trade shows. R&S is focusing on key growth sectors including data centres, port electrification and in Germany, renewable energy solutions.
Organised by the The British-Swiss Chamber of Commerce, the event featured talks by officials and member companies of Switzerland’s two stock exchanges, along with bankers, lawyers and the Swiss ambassador.
I anticipate an increase in mergers and acquisitions as investors and operators strive to maximise the opportunities created by the ongoing evolution of electricity supply infrastructure. For example, the UK remains a significant hub for transformer manufacturing, with several facilities located in Leeds alone.
Effective communication is a vital, calculable factor in ensuring the success of M&A transactions, presenting investors and companies with a valuable opportunity to manage expectations, build trust, and deliver a smoother transition for all stakeholders.
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