We are all aware the economy is changing or slowly changing from an oil-based economy to one that runs more on renewables. In some places the desire to change is ahead of the reality, and that includes the country of United Kingdom or Britain.

In an article by Eshe Nelson of the New York Times News Service, a startup company has done research and wants to expand by manufacturing their product, a classic hopeful success story. The company called Paragraf, makes chips using graphene and can check for defects in electric vehicle batteries to prevent fires and other uses. The company identified a need and decided to ramp up production from thousands to millions. That is the good news.

The bad news for the company to uses its existing facilities, the cost to bring electricity to the site was going to be $1.5 million. Why, because Britain’s electrical grid is behind the times as a result of years of underinvestment.

The politics said they will need relatively low-cost electricity to move off the use of oil, as a general statement people can buy into it. Companies investing in solar power and wind farms have done a good job, but the reality is the low-cost electricity has to brought to urban areas and that is the problem. The planning and grid up grades needed are block by a system which gives considerable power to local planning authorities and who wants to look at a tower system in the country?

In Britain they have the National Infrastructure Commission which advises the government, offered greater incentives to local planning authorities which can approve the infrastructure upgrades. Will it work? no one knows, but it is a start.

Jeremy Hunt, the chancellor of the Exchequer (Budget Chief) said planning and grid reforms are 2 of the most critical changes in the budget to revive growth.

The opposition Labour Party’s Leader, Keir Starmer, the party will bulldoze through Britain’s restrictive planning system to get the grid moving. (note most of Labour support is in the urban areas).

The company, Paragraf, decided rather than wait for an upgrade by local council paid the $1.5 million to a grid operator to upgrade the building. The company based in Cambridge, England wanted to stay and grow in England as opposed to moving to the US with the help of the CHIPS Act.

Linking to dividend paying stocks, in all countries around the world there usually is a difference between what the politicians talk about and the reality of the situation, fortunately profitable companies tend to have the choice of waiting for the government or moving without them. All companies work with governments of all stripes and sizes, but sometimes all they want to do is carry on with their work. For your investments, what is the difference between government speak and reality on the business world?

There are more questions than answers, till the next time – to raising questions.