– New research reveals consolidation will transform global energy sector
– UK, Germany, China top three destinations for acquisitions

Ninety percent of energy companies are seeking joint ventures with or acquisitions of smart energy technology specialists, according to research by legal firm Pinsent Masons.

A smart energy revolution is underway as global energy suppliers react to a seismic shift in the supply and distribution of electricity and consumer demand says the legal firm.

The report. ‘Hungry For Change – Investing in a smarter energy future’, which surveyed 250 senior executives at energy and energy investment companies, found that 90% of energy companies are actively seeking energy technology bolt-ons.

Pinsent Masons said this step-change is being driven by the rapid change in consumer energy consumption behaviour, shifts in Government policy and a desire to improve security of energy supply.

The findings show that over the next two years investors and energy companies will prioritise smart meters, new methods of harnessing surplus power and in-house development of data analytics technology, while cloud management systems and virtual power plants will see a surge of investment over the next six years.

The research revealed 85% of respondents expect mergers and acquisitions in utilities to increase in the next 12 months with the UK, Germany and China named as the top three target countries for smart energy investment. Forty-six percent of investors and 30% of utilities are investing to access new technology, while 30% of utilities and 24% of investors are looking to invest in smart meter technology in the near term.

In addition, 62% of energy companies say they will not opt for in-house development of smart energy solutions due to high start-up costs and a lack of expertise but instead go down the joint venture and acquisition route.

Edinburgh-based energy partner at Pinsent Masons, Ian McCarlie, said: “Energy companies are grappling with a seismic shift in energy markets and consumption patterns, with widespread distribution and supply market innovation driving energy companies and investors to diversify and adapt their business model.

“Joint ventures and acquisitions are the key to this revolution if utilities are to play a role in the future of the energy industry, maintain security of supply and meet consumer demand in a highly competitive market.

“The transition to a low carbon economy is gathering momentum, presenting significant opportunities for energy service companies as we move towards and into the 2020s, but action must be taken now to avoid being left behind.

“Cloud-based management and virtual power plants are high on the agenda, but this is the destination not the starting point. The groundwork must be laid with investment into smart meters, battery storage and data analytics to build a sustainable, resilient and profitable energy industry.”

Pinsent Masons says recent deals such as Enel’s acquisition of Element Power’s 25 Megawatt (MW) energy storage project in Tynemouth and Eneco’s purchase of a stake in virtual power plant specialist Next Kraftwerke demonstrate a shift in gear towards a more technology-driven utilities sector.

Mr McCarlie added: “A clear strategy for investment into new technology is driven by the need for utilities to evolve their business in light of government policies to decentralise energy supply, improve energy efficiency and continue the transition to the low carbon economy.

“What we’re seeing is energy companies stepping up to the plate and embracing the brave new world of energy supply. At the heart of this revolution, consumer choice and efficiency are of paramount importance. Bolting on technology and pooling resources is the most effective way to respond to new consumer trends and patterns of energy consumption.”

Labour is now the political party most trusted by voters in England to represent English interests, according to new research from Cardiff University and the University of Edinburgh, released today [Sunday 24th September].

The latest evidence is a marked departure from previous surveys which have suggested a lingering dissatisfaction among English voters with Labour’s response to the ‘English Question’.

The findings, taken from the latest Future of England survey, will be presented tomorrow, Monday 25th September, at a fringe meeting of the Labour Party’s Annual Conference in Brighton.

Almost a third of those surveyed (31%) identified the Labour Party as the party best positioned to stand up for England, compared to 24% who identified the Conservatives and just 9% who opted for UKIP. The Liberal Democrats scored the lowest of any major political party, with just 4%.

This is a significant change from previous findings, which saw UKIP as the most trusted defender of English interests in 2016, while in 2015 the Conservatives enjoyed a substantial lead in the aftermath of a general election campaign where the party successfully mobilised English sentiment over fears of the SNP holding the balance of power in a hung parliament.

Despite the introduction of ‘English Votes for English Laws’ (EVEL), a Conservative policy designed to protect exclusively English law-making from external influence, there is a perception among voters that the UK Conservative government is insufficiently committed to introducing change for England. A majority of respondents (54%) felt there has been very little or no progress in this area, compared to perceptions of an enhanced devolution settlement for Scotland. Accordingly, a sizeable proportion of respondents want to see further action to enhance England’s political voice.

Speaking ahead of the meeting, Professor Richard Wyn Jones, Director of Cardiff University’s Wales Governance Centre, said:

“Just two years ago the Conservatives successfully played into fears of a Labour-SNP coalition deal to project themselves as the party best placed to defend English interests. Now the latest evidence suggests that the tables have turned, with Labour seen as most likely to give England its political voice. The challenge for the Labour Party is to capitalise on this trust and craft a popular, sustainable solution to these demands without losing its appeal across the UK as a whole”.

Professor Ailsa Henderson, Professor of Political Science at the University of Edinburgh, added:

“What’s clear is that despite the introduction of English Votes for English Laws, voters in England don’t think it has happened, with less than one percent thinking that the government has made a lot of progress on EVEL. It’s also clear that voters believe this is down to a lack of government commitment. Since this was the governing party’s main proposal for dealing with English governance, it’s perhaps not surprising that voters now believe another party is best able to stand up for England.”

• Scottish shoppers are leaving 68% of items unpurchased in their shopping baskets
• The offer of free deliveries (57%), selling the item cheaper than elsewhere (42%) and customer reviews (42%) are particularly likely to entice Scottish shoppers to convert to a purchase
• Glaswegians are more likely to browse online shops using personal smartphone (42%) compared to Edinburgh shoppers (23%)
• Investment in converting browsers to shoppers nationwide could cut basket abandonment in half by 2021, and boost retailer profits by £10.5bn

Shoppers in Scotland are particularly keen on free deliveries and competitive prices, finds new research by Barclays.

Shoppers in Scotland reckon that they buy only 32% of the products that they save to their shopping baskets. When asked what would encourage them to buy what they save to their baskets, 42% said customer reviews would help, versus the national average of 39%.

Shoppers in Glasgow (42%) are also more likely to shop using their personal smartphone compared to Edinburgh consumers (23%) and the rest of the UK (31%). Across the UK, the research finds that retailers may be losing out on valuable sales because consumers are finding it difficult to complete transactions using their mobile phones. This is leading to the phenomenon of ‘device switching’ where consumers browse for products on their mobile phone and then switch to another device, such as a laptop to complete their purchases.

The findings are from the Barclays Corporate Banking Online Retail Report, From Browse to Buy: The Conversion Challenge and are based on the views of 300 senior retail managers, 2,000 UK consumers and economic modelling. The study found that through investment in basic techniques, British retailers could cut basket abandonment in half by 2021 and boost retailer profits by £10.5bn over the next five years.i

Euan Murray, Relationship Director, Barclays Corporate Banking, Scotland, said: “With retailers battling the continuing pressures stemming from wider economic developments and shoppers postponing or reducing discretionary spending, the last year has been an uphill battle for the retail industry. Throughout this, online sales have continued to motor ahead and make up a portion of the shortfall.

“With 36% of UK e-retail sales via mobile, retailers must invest in their online and mobile shopping platforms to improve the user experience and drive growth. Online is the driving force for sector growth and our research highlights the overarching benefits investment in sophisticated online and mobile shopping experiences can bring.

“If they get their online strategy right, we could be looking at UK retailers selling more that £80bn of stock online by 2021, but that will only happen if as an industry we respond to what the public want from us. This research shows that a streamlined mobile offering, flexible delivery and competitive pricing can help convert more browsers to buyers.”

Nationwide trends
Across the UK, British retailers are losing out on £3.4 billion worth of goods left in virtual shopping baskets each year. Consumers switching from mobile phone browsing to laptop purchasing, a lack of discount incentives and desire for a variety of delivery options are key reasons for ‘basket abandonment’, according to the research.

At an uncertain time for the retail sector, the report estimates that investing in measures that encourage purchase conversion would cut basket abandonment in half by 2021.

Furthermore, instead of fiddling around with mobile sites that aren’t optimised, or wasting time searching through a difficult to navigate website, 614 million hours of timei[i] could be saved over the next five years. There are productivity benefits too to the tune of £4.2bniii, as time is freed to work or spend on the economy.

Retired and semi-retired individuals in Edinburgh with a passion for learning are set to benefit from a new agreement that will see them able to participate in University research projects.

Edinburgh Napier University has signed a partnership agreement with University of the Third Age (U3A) as a commitment to supporting the life-long learning passions of its members in the city.

The U3A in Edinburgh has more than 1900 members who meet regularly for various interest groups, activities and social opportunities as a means to learn from one another. The emphasis is not on qualifications, but for the sheer joy of discovery.

Through the partnership, University of the Third Age members will have the opportunity to actively participate in Edinburgh Napier academic research projects as well as engage with students through a pilot knowledge exchange mentoring initiative.

The University’s Special Collections will also serve to engage specific interest groups within University of the Third Age and support its members to indulge their passions for history, literature and culture.

The professional experience members have gained throughout their respective careers will also serve to support the aspirations of Edinburgh Napier University students.

Bruce Cowan, Chair of the Edinburgh Branch of the University of the Third Age said: “The members of Edinburgh University of the Third Age are looking forward to a long and mutually productive association with the staff and students of Edinburgh Napier University.”

Interest groups are very much at the core of the University of the Third Age framework and the Scottish Authors Interest Group recently visited the Robert Louis Stevenson Collection at Edinburgh Napier’s historic Merchiston Campus.

Sheila Smith, Leader of the Scottish Authors Interest Group, said: “We were totally bowled over at being allowed to handle some of the collection’s books, look at others, view photographs as well as share in the expertise of Edinburgh Napier’s academic knowledge and enthusiasm. I think we could have stayed all day.”

A collaborative exhibition project is planned as part of the Luminate Festival which seeks to explore and challenge popular perceptions of creativity in later life through a cross-generational artistic exchange of mediums, techniques, colour and tone.

Karen Goodman, Head of Development and External Relations said: “Here at Edinburgh Napier University we see great benefit in inviting others – passionate about learning and open to collaboration and sharing of ideas and experiences – who can bring insight to our students’ education journey, into the University family. Our partnership with U3A will certainly enhance that journey, but we hope that it will also give something back to members.”

An Edinburgh-based food company has its sights set on healthy growth after extending its research and development capability via a partnership with a Scottish university.

Gluten-free food specialist, Genius Foods, has entered into a partnership with the Scottish Centre for Food Development and Innovation at Queen Margaret University (QMU), where its team is now operating from a specialist new food science laboratory.

With a strong research background in supporting the development of Scotland’s food and drink businesses, Genius Foods identified QMU as the academic partner with the most suitable facilities for developing its own recipes and product range.

Food scientists at QMU have provided expert training to the Genius Foods team on ways to measure the texture, colour and flow properties of its products using specialist equipment.

Genius Foods will also have access to the Centre’s fully-equipped sensory suite facility, which allows experts to measure people’s perceptions of food and drink products’ attributes, including appearance, aroma, texture, flavour and after taste.

QMU’s team of food innovation experts regularly provide its clients with consumer focus groups, taste panels, nutritional analysis and shelf-life testing.

Dr Julien Lonchamp from QMU’s Scottish Centre for Food Development and Innovation, said: “We’re very pleased to be providing specialist research and development facilities and training for Genius Foods. The specific combination of sensory and analytical facilities that we offer at QMU was previously unavailable elsewhere in Scotland, so research work was often sent to England or Northern Ireland instead.

“Through practical innovation support and creative business solutions, QMU is continuing to help leading food and drink businesses, like Genius Foods, with new and innovative product development.”

Lucinda Bruce-Gardyne, Founder of Genius, added: “The partnership with Queen Margaret University demonstrates our ongoing commitment to producing market-leading gluten free bakery products. While an element of our R&D will remain in-house, we are working in partnership with the Scottish Centre for Food Development and Innovation, which will enable us to have an even deeper understanding of the behaviour of our core ingredients. We look forward to working with QMU to take our recipes and product range to the next level.”

The Scottish Centre for Food Development & Innovation is enhancing Scotland’s position as a leader in food and drink innovation in Europe and supporting access to the global market for healthy and functional food. Facilities include a dedicated chemistry laboratory and a technology room for industry to test new technology.

For more information about the Scottish Centre for Food Development & Innovation and how it can benefit your business, contact Miriam Smith, Business Development Manager at QMU on 0131 474 0000 or email MSmith3@qmu.ac.uk or visit
www.qmu.ac.uk/research_knowledge/scottish-centre-for-food-development-and-innovation.aspx

For more information on Genius Foods, visit www.geniusglutenfree.com