INSIGHTS: Getting energy planning for freight and logistics right

An extensive programme of work has been underway recently to deliver a step-change in planning for the country’s future energy needs. The publication in February of the transitional RESP (Regional Energy Spatial Planning) sets out an understanding of the strategic needs for each of the key sectors that we need to plan for. The RESP sets out the strategic energy needs and context for each region and begins to set out the pathways for achieving this. 

Midlands Connect has been working with the RESPs - we know how important a robust and reliable energy infrastructure is to the future of transport. Until recently of course, most vehicles have “filled up at the pump”, but going forwar,d there will be a major shift to other types of energy (especially electric) to move vehicles of all types. The ways in which people and businesses consume these new energies have to be factored into planning. Recent analysis from the Freight Energy Forum suggests that the logistics sector itself will need 32TW of energy each year - the output of four large power stations or the consumption of 8 million homes to keep businesses running, food in supermarkets and home deliveries on time. 

We have been working with the RESPs in the Midlands area to share the evidence from our LEVI and Freight Intelligence programmes. The recent RESP suggests that the passenger side is well covered. 

However, most will agree that we’re not quite there yet with the “picture” for the logistics sector. 

We know there is ambition to understand how the energy needs of the sector and Midlands businesses are forecasted and planned for in greater detail. As we now work towards the next level of planning (the full RESP is planned for 2028) we need to make sure that there is an understanding of not just the energy needed but also of the fundamental importance of the freight and logistics sector to current and future economic growth regionally and nationally. 

This isn’t just something for the RESP to do themselves. 

We at Midlands Connect need to continue our engagement with Local Authorities, local businesses and logistic companies, using the evidence from our Freight Intelligence Programme to understand future regional needs. Not getting this right could bring serious consequences in the coming years – fewer businesses able to transition to net zero vehicles and continuing high levels of carbon emissions from the sector in our local areas.

Whilst there are uncertainties – some of which are set out below – we do know there are some things to plan for. We know:

• There are already thousands of freight journeys per day through the Midlands. 
• Forecasts suggest increasing freight volumes in coming years with places such as the East Midlands Freeport, freight operations at the airport and various warehousing sites generating significant levels of freight journeys.
• There are natural stopping points in the Midlands for lorries coming from ports in the south, meaning there will be density of demand for recharging or refuelling, of course along the M6 and M1 but also on routes such as the A50/500, A5 and A1 in the West Midlands and the M69, A46, A47 and A14 in the East Midlands. Our work on the Freight Energy Demand Zones has highlighted this, and work by other organisations has come to similar conclusions. 

So, we have a good idea of where some of the recharging will need to take place, but there are uncertainties to address: 

• The pace of change for the logistics sector is difficult to forecast. Many larger operators have taken steps to decarbonise parts of their fleet and electrify their depots, but there are many who will not be able to make this investment or will need to rely on a public network. However, to date, there are only a handful of operational HGV charging stations. 
• Some of the work we have been doing at Midlands Connect is building the Strategic Case for a recharging site in the East Midlands, where the concentration of the airport and logistics businesses means there should be a strong case for a hub. 
• The general consensus is that the future will be dominated by electric HGVs, with hydrogen fuel cells most likely to be used for vehicles that have a Maximum Authorised Mass of over 40 tonne vehicles at a later time. However, some believe that biofuels will need to be used to support the transition, as drop-in fuels make the transition more affordable for companies in the short-medium term.
• We want to work with the sector to obtain vehicle scheduling information, which includes freight movements for all types of fleets. To effectively plan for the future, we need to find a way to bridge the evidence gap between Local Authorities, logistics providers and Central Government so we can meet the needs of operators and ensure the effective running of this sector and our wider economy. 

We’re looking forward to continuing to work with the RESP and others to find ways to build this evidence and make sure we’re jointly planning for the future of this vital sector. 

Alex Dodds is the Policy Lead at Midlands Connect.