UK greenhouse consultation highlights energy costs and investment as priorities for modernisation

The first consultation on the UK's proposed Greenhouse Modernisation and Expansion Programme (UK-GMEP) has revealed strong industry support for a coordinated national strategy, while highlighting energy costs, infrastructure and commercial competitiveness as major barriers to expansion.

Led by the Greenhouse Innovation Consortium (GIC), UK-GMEP aims to modernise ageing greenhouse infrastructure, encourage investment in new facilities and accelerate technologies that improve productivity and resource efficiency.

The consultation, conducted between 15 September and 28 October 2026, found that all submissions supported a coordinated national approach, with 88% strongly agreeing.

However, Dr Sven Batke, Chair of the GIC, highlights an important distinction: support for greenhouse expansion does not necessarily mean agreement on how it should be achieved.

Energy costs remain the primary barrier

"Energy was the most consistent concern across the responses. Every submission identified uncertainty around future energy costs as a major or critical investment barrier, while more than 80% highlighted grid capacity and connections."

Capital costs and future energy prices were each identified by 63% of respondents as priorities requiring urgent attention. Access to suitable heat sources followed at 50%.

Dr Batke's central question captures the challenge facing the sector: "Before we build more, can we afford to grow?"

One respondent, drawing on experience managing a 12-hectare pepper operation, summarised the issue: "It all really boils down to heating cost and produce prices."

Another argued that reducing energy and heat costs should come before expanding productive capacity, allowing growers to establish profitability before investing in additional facilities.

© GIC

Integrated infrastructure and technology investment

Energy, water and resource integration emerged as the leading programme priority, selected by more than 60% of respondents. Greenhouse infrastructure renewal and innovation and technology deployment each received support from 50%.

Respondents also identified the need for measures addressing infrastructure and financial barriers that individual growers cannot easily overcome. Energy infrastructure support and longer-term procurement and market arrangements received positive assessments.

"Government-backed long-term finance, commercial technology demonstrations and independent technology validation were also supported as potential delivery mechanisms."

His assessment emphasises the importance of approaching greenhouse modernisation as an integrated development process rather than investing in individual technologies in isolation.

"One submission specifically cautioned against funding individual greenhouse assets without ensuring that energy, water, digital infrastructure, interoperability, market demand and long-term operational performance are considered as one integrated system."

The consultation also identified opportunities to connect greenhouse operations with other industries, particularly through the use of waste heat, energy and water resources.

Competitiveness and regional investment

Although support for UK-GMEP was strong, respondents expressed differing views on implementation.

"Some favoured concentrating investment in established horticultural regions with existing infrastructure, expertise and supply chains. Others questioned whether smaller businesses would have sufficient access to proposed funding."

The role of government also attracted scrutiny, particularly whether financial mechanisms would adequately address investment risks in a sector facing uncertain returns.

International competitiveness was another concern. One respondent observed: "The UK growers are at a disadvantage against other countries."

"Modern greenhouse infrastructure can improve productivity and resource efficiency, but cannot independently resolve differences in energy prices, labour costs and international production conditions. Aligning greenhouse development with wider food security, energy and industrial policy will therefore remain important."

GIC prepares for the next phase

For the GIC, the consultation provides an opportunity to reassess the programme against the practical experience of the industry.

Dr Batke previously explained that identifying disagreements with the proposals was an important part of the consultation process.

"We do not expect everyone to agree with everything in a document of this scale. In fact, identifying where the sector disagrees with us is extremely useful. What matters now is that we have enough evidence to understand what should be retained, what needs changing and what may be missing altogether."

The GIC will use the findings to review its approach to energy affordability, commercial competitiveness, investment, regional delivery and governance.

The next phase will involve direct engagement with commercial growers, industry organisations and other stakeholders to assess the proposed interventions and identify necessary adjustments.

"The consultation confirms that the industry recognises the need for greenhouse modernisation. However, future expansion will depend on affordable energy, reliable infrastructure, accessible finance and sustainable production economics, alongside investment in new facilities and technology."

For more information:

Dr. Sven Batke, Chair of the Greenhouse Innovation Consortium

[email protected]

edgehill.ac.uk/person/sven-batke/staff/