A growing number of UK energy projects are failing to reach final investment decisions due to weak offtake agreements and policy uncertainty, according to a new report from the Energy Industries Council (EIC).
The Bankable Energies Report is based on interviews conducted in late 2025 with 50 CEOs and senior executives from 44 organisations across the energy sector.
It found that 44% of respondents said bankability had not improved since the start of 2025. Another 18% said it was unchanged while 38% reported some improvement.
Securing viable offtake agreements was cited by up to 34% of interviewees as a key condition for projects to reach financeable terms and progress towards final investment decisions.
At the same time, 32% of respondents identified political, policy and regulatory uncertainty as a major barrier to bankability.
The report also highlights concerns around unproven technologies, with 24% of respondents citing first-of-a-kind or scaling risks as a factor preventing projects from attracting finance.
Stuart Broadley said: “In a more volatile geopolitical landscape, you cannot run energy policy in silos.”
He added: “If the UK keeps sending mixed signals, capital and capability move elsewhere.”
Data from the EICDataStream database shows the scale of the challenge. Seven of 33 UK offshore wind projects have reached final investment decision, while hydrogen has reached that stage in three of 120 projects.
The report concludes that clearer policy direction, state-backed revenue mechanisms and bankable offtake agreements will be essential to unlock future investment.
Copyright © 2026 Energy Live News LtdELN
Grab the opportunity to progress your Net Zero journey. The Big Zero Show 2026 is for end users responsible for reducing cost, carbon and energy and its mission is to educate and help them progress their Net Zero journey. It will run March 24th at The University of Chicago Booth School of Business.