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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
SECR statement for accounting period May 2024 – April 2025 Reporting and performance
Risk management continued Quantitative scenario analysis continued Climate scenarios As per TCFD recommendations, the risk and the opportunity were quantified based on the below climate-related scenarios.
Transition market opportunity: Transmission and distribution (T&D) network expansion Description and overview OCU Group faces a transition market opportunity associated with the expansion of the UK’s T&D network infrastructure taking place to enable and facilitate growing electrification rates. There is opportunity for OCU to further establish its position in the T&D market for both the regulated and non-regulated units in key growth areas. Growth in the transmission network will have a multiplier effect on OCU’s distribution-focused areas. Services associated with overhead lines, substations, and cabling for offshore and renewables grid integration, battery connections, and EV charging ports are likely to be shorter-term opportunities.
Estimated 2100 warming
Description
Current policy Continued high greenhouse gas emissions with no significant changes to the energy market. Delayed transition Aggressive but delayed global actions to limit warming to under 2°C.
3ºC
T&D growth projections for the UK are based on DNV’s Energy Transition Outlook 2025 and other relevant industry models. These projections are then customised and aligned with climate scenarios from the NGFS to assess risks and opportunities under different transition pathways. In the Current Policy scenario, the slower progression towards electrification is projected to lead to a substantial but comparatively lower market opportunity, due to slower expansion of the T&D network infrastructure in the UK. The Net Zero scenario is the most promising for OCU to capitalise on the rapidly expanding T&D infrastructure. Under the Net Zero scenario, the market opportunity for OCU in 2030 is nearly double that under Current Policies. This reflects the step-change in electrification policy in the short term under the Net Zero scenario. The Delayed Transition follows a similar pathway to the Net Zero scenario, which can be explained because of the delayed ‘kick-off’ of the decarbonisation drive to post-2030, resulting in a lower cumulative market opportunity in the study time horizon. • Maintaining dual focus between improving existing infrastructure and integrating new renewables-led infrastructure. • Aligning focus and priorities to future regulatory periods RIIO ED3 and T3. • Development of workforce to support complex and multifaceted T&D infrastructure projects.
2ºC
Net zero Aggressive and immediate global actions to limit warming to under 1.5°C, leading to significant transformation of the energy market. 1.5ºC These are aligned with the Network for Greening the Financial System (NGFS) using the integrated assessment models (IAMs) GCAM 6.0 and REMIND-MagPIE 3.3-4.8. Impact and resilience For both the technology risk and market opportunity, OCU Group faces varying degrees of exposure under the different scenarios analysed in the following tables. Given OCU’s sectoral alignment with the UK’s decarbonisation goals, the potential upside for OCU Group from T&D infrastructure expansion is high, with the rate of this growth dependent on the speed of the net zero transition. Comparatively, the risk from LCV transition to battery-electric vehicles is lower than the opportunity explored, in part due to forecasted improvements in cost, efficiency and infrastructure.
Financial impact
Enabling actions
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