MCC Economics delivers independent, evidence-based analysis across economics, finance, and regulation. With experience spanning energy, water, infrastructure, and public policy, the firm supports transparent and effective decision-making. Clients across the UK, Europe, and the Middle East benefit from rigorous analysis, financial modelling, and clear policy insight.
MCC Economics publishes independent analysis and commentary on issues at the intersection of economics, finance, and regulation. Our publications draw on experience from projects across energy, water, infrastructure, and public policy - providing evidence-based insights that support transparent, accountable, and effective decision-making.
Explore how the UK Infrastructure Bank is shaping the UK’s green and economic transformation. This article reviews UKIB’s mandate, funding capacity, early investments, and risks, and assesses its potential to drive long-term, sustainable infrastructure growth.
This article provides an overview and early assessment of the UK Infrastructure Bank (UKIB) following its establishment in 2021. It explores the Bank’s strategic objectives, funding capacity, sectoral priorities, and early deal activity across clean energy, digital infrastructure, transport, and water. The article also considers the pricing and risk characteristics of UKIB finance, its role in crowding-in private investment, and the challenges it faces in balancing public policy objectives with commercial discipline. Together, these insights offer a timely perspective on whether UKIB can fulfil its ambition to support net-zero delivery and drive long-term economic growth in the UK.
This article examines the UK Infrastructure Bank’s emerging role in supporting infrastructure investment and the transition to net zero. It reviews the Bank’s mandate, funding capacity, early deal activity, and sectoral focus, and considers the risks it faces as it seeks to mobilise private capital and contribute to long-term economic growth in the UK.
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Abstract
The UK Infrastructure Bank (UKIB), is a relatively new addition to the ranks of eminent institutions established in the country to accelerate investment in the UK’s infrastructure. Set up in 2021, the Bank’s mandate is to support the transition to net-zero carbon emissions by 2050.
Since its inception, the Bank has funded 18+ deals across various infrastructure sectors such as clean energy, digital, transport, waste, and water. The bank has a focus on green infrastructure projects and is consistently attracting private-sector investment both at home and from overseas investors to the country’s infrastructure projects.
UKIB has an investment-war-chest of £22 billion, as follows: £7 billion of debt; £5 billion of equity; and £10 billion for guarantees. UKIB’s money is available to private sector corporations, investment funds and local authorities.
Not only has UKIB a huge investment war-chest at its disposal for corporate and project finance: the money is cheap. UKIB’s accounts for the year ending March 2022, suggests an average interest rate close to 1% for the fortunate counterparties - although that may be misleadingly low as the reported values will reflect partial-year-loans. However, we noted the following cheap-money-infrastructure-deal examples by UKIB:
Until recently, the Bank has made ~£2 billion in total commitments since inception and few large deals have already been closed:
The Bank has already announced a total of 7 commitments in the clean energy sector, potentially investing over £800m in the sector. Fibre broadband infrastructure in the UK is also expected to benefit immensely from a total commitment of £775m by the Bank, across 6 deals in the digital sector.
UKIB faces several key investment risks such as regulatory risks, market risks, and credit risks. However, it is well-equipped to manage these risks and ensure compliance with international obligations on subsidy control and future domestic regimes.
The UK Infrastructure Bank presents an opportunity for the country to leverage its resources to mobilise investment. The Bank is already providing expertise and capacity to local governments and help them realize their infrastructure plans. The Bank is also expected to help build back better, fairer, and greener by supporting the transition to net-zero carbon emissions by 2050.
In conclusion, the UK Investment Bank is a new institution with the potential to play a major role in the UK economy. The bank has made some early progress in making funding deals, but it remains to be seen how successful it will be in achieving its mandate. The future of the bank will depend on a number of factors, but it has the potential to be a major force for economic growth in the UK.
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Explore our latest paper which examines Abu Dhabi’s solar approach—centralised utility-scale vs. distributed rooftop generation. Finds rooftop PV still uneconomical for heavily subsidised user groups but cost-effective for industry and commerce, suggesting subsidy reforms to unlock distributed solar for 2050 climate goals.
Abu Dhabi faces a strategic choice in scaling up solar energy: centralised mega-projects or decentralsed rooftop systems. This paper by our Director PJ McCloskey and analyst Rodrigo Remor analyses why distributed solar uptake remains low in Abu Dhabi and evaluates its economic viability under current conditions. Abu Dhabi has so far favored large solar parks (e.g. the 1.17 GW Noor Abu Dhabi plant) while rooftop solar adoption is minimal (~2.94 MW on government buildings by 2020, <1% of Noor’s capacity). Given the UAE’s net-zero commitment and Energy Strategy 2050 targets (44% renewable electricity by 2050), the study explores whether decentralised solar could play a larger role and what policy shifts might be required.
This paper evaluates the economic viability of decentralised solar systems in Abu Dhabi. By analysing levelised cost of electricity (LCOE), net present value (NPV), and internal rate of return (IRR) across customer groups, it finds that while rooftop solar generation is not yet cost-effective for heavily subsidised sectors, it remains viable for industrial and commercial users. The study suggests that subsidy reform could significantly improve the financial appeal of decentralised systems, aligning with Abu Dhabi’s decarbonisation targets under the UAE Energy Strategy 2050.
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Abstract
Explore our latest paper which examines Abu Dhabi’s solar approach - centralised utility-scale vs. distributed rooftop generation. Finds rooftop PV still uneconomical for heavily subsidised user groups but cost-effective for industry and commerce, suggesting subsidy reforms to unlock distributed solar for 2050 climate goals.
MCC Economics works with governments, regulators, and organisations across the UK, Europe, and the Middle East.Our case studies highlight how rigorous analysis, financial modelling, and policy insight have supported clients in making transparent, defensible, and effective decisions. Each project reflects our commitment to clarity, independence, and analytical precision.
Explore our case study to discover how MCC supported The Insolvency Service in delivering a comprehensive Value for Money evaluation for the Corporate Insolvency and Governance Act (2020).
Explore our case study to discover how MCC supported The Insolvency Service in delivering a comprehensive Value for Money evaluation for the Corporate Insolvency and Governance Act (2020). Learn how we sourced and analyzed extensive financial and operational data to provide actionable insights into the impact of this legislation.
The Insolvency Service required expert assistance in evaluating the effectiveness and efficiency of the recently introduced Corporate Insolvency and Governance Act (2020). Specifically, they needed a detailed value for money analysis to assess the financial and operational outcomes of the Act, comprehensive data collection and analysis for over 700 insolvent companies to ensure an accurate understanding of their financial circumstances and a rigorous verification of approximately 20,000 data points to ensure reliability and precision in the evaluation process.
MCC delivered a robust solution to meet The Insolvency Service’s requirements:
Our work enabled The Insolvency Service to effectively assess the impact of the Corporate Insolvency and Governance Act (2020), ensuring transparency, accountability, and evidence-based decision-making.
Discover how MCC partnered with the Department for the Economy (DfE) to deliver a comprehensive forensic accounting review of BT’s broadband rollout in Northern Ireland. MCC provided detailed insights and actionable recommendations to address contractual inconsistencies and ensure the infrastructure met required standards.
Discover how MCC partnered with the Department for the Economy (DfE) to deliver a comprehensive forensic accounting review of BT’s broadband rollout in Northern Ireland. By assembling a multidisciplinary team of accountants and engineers, MCC provided detailed insights and actionable recommendations to address contractual inconsistencies and ensure the infrastructure met required standards. This case study demonstrates our expertise in blending technical and financial analysis to support critical government initiatives.
The Department for the Economy (DfE) sought MCC’s expertise to address issues related to BT’s broadband rollout in Northern Ireland. Specifically, their needs included identification of reporting problems, investigating discrepancies in reported information, grant monitoring and oversight, technical validation, and infrastructure Inspection.
MCC delivered comprehensive and multidisciplinary approach to meet DfE’s requirements. Our contributions included:
Discover how MCC partnered with the Statistics Centre – Abu Dhabi (SCAD) to develop robust GDP forecasting models for Abu Dhabi. and in delivering precision and actionable results for complex economic challenges.
Discover how MCC partnered with the Statistics Centre – Abu Dhabi (SCAD) to develop robust GDP forecasting models for Abu Dhabi. By leveraging advanced methodologies and in-depth sectoral analysis, we empowered SCAD with the tools and insights needed to make informed strategic decisions and drive sustainable economic development. This case study showcases our commitment to delivering precision and actionable results for complex economic challenges.
SCAD wanted to identify qualified entities capable of delivering precise and credible GDP forecasts. Their goals included sector-specific GDP Forecasting through developing detailed predictions for each economic sector contributing to Abu Dhabi’s GDP for a period of up to five years. Moreover, the requirement was to build prescriptive models to assess various economic dynamics and their impact on sectoral and overall GDP as well as ensuring the models remained relevant through regular updates, data monitoring, and integration of new economic indicators.
MCC delivered comprehensive forecasting solutions tailored to SCAD’s requirements, ensuring precise and actionable results. Our services included:
Discover how MCC supported Cefas, an Executive Agency of the UK Government, in navigating the complexities of international tax compliance. This case study highlights our role in ensuring seamless submission of tax returns and providing expert advisory services to meet Kuwait’s regulatory requirements.
Discover how MCC supported Cefas, an Executive Agency of the UK Government, in navigating the complexities of international tax compliance. This case study highlights our role in ensuring seamless submission of tax returns and providing expert advisory services to meet Kuwait’s regulatory requirements. From tailored advice to efficient resolution of queries, explore how our comprehensive approach empowered Cefas to focus on their core mission while we handled their tax obligations.
Cefas (The Centre for Environment, Fisheries and Aquaculture Science) required assistance in meeting their tax obligations in Kuwait. Their specific needs included Annual Tax Return Submission to the Kuwait Tax Authorities (KTA), guidance and advice on tax-related matters to ensure compliance with local regulations, and support in addressing any queries or issues raised by the KTA during the submission or review process. Additionally, Cefas needed assistance in notifying the KTA of the cessation of their activities in Kuwait.
MCC delivered a comprehensive suite of services to meet Cefas’ requirements, ensuring their tax compliance and mitigating potential risks. Our services included:
Through our tailored approach and in-depth knowledge of Kuwaiti tax regulations, MCC enabled Cefas to meet their compliance requirements efficiently, allowing them to focus on their core environmental and scientific missions.
Explore our Northern Ireland Electricity Network UK case study to see how we collaborated with industry experts to address critical regulatory challenges, identify overcharges, and deliver outcomes that protected consumers and upheld transparency.
Explore our Northern Ireland Electricity Network UK case study to see how we collaborated with industry experts to address critical regulatory challenges, identify overcharges, and deliver outcomes that protected consumers and upheld transparency.
Northern Ireland Electricity Network Ltd (NIEN) and the Utility Regulator required expert assistance to investigate inconsistencies in NIEN’s capitalisation practices. The goal was to determine whether these practices had resulted in financial detriment to consumers and to provide a robust basis for regulatory decisions. The investigation required project management, drafting key reports, and collaborative investigation.
MCC led a major piece of this project in Northern Ireland, alongside an engineering consultancy (SKM) and a financial consultancy (PKF, now BDO), with regards to inconsistencies in Northern Ireland Electricity Network Ltd (NIEN’s) capitalisation practices. Our contributions to this project included:
Through this work, MCC demonstrated its ability to navigate complex regulatory challenges and deliver impactful solutions that safeguard consumer interests.
Explore our Firmus Energy case study to see how we provided them essential financial and regulatory support, ensuring compliance with complex VAT regimes and delivering audited statutory accounts with precision and reliability.
Explore our Firmus Energy case study to see how we provided them essential financial and regulatory support, ensuring compliance with complex VAT regimes and delivering audited statutory accounts with precision and reliability. Discover how Firmus Energy looked to MCC for guidance in navigating the complex financial and regulatory challenges while maintaining transparency and operational efficiency.
Firmus Energy required expert financial support to manage and streamline critical accounting processes, ensuring compliance with both national laws and regulatory requirements. Specifically, the client needed assistance in calculating VAT liabilities and preparing for VAT audits, requiring accurate classification of transactions across different VAT regimes in Great Britain and Ireland. Additionally, Firmus Energy sought a reliable approach to preparing statutory and regulatory accounts for a group of energy companies.
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