Programme-led rail electrification could cut costs by 30%, industry report claims

A shift to a long-term, programme-based approach to railway electrification could reduce delivery costs by around a third, according to a new report from the Railway Industry Association (RIA).

The report, Electrification Cost Challenge 2.0, argues that the UK's traditional stop-start approach to electrification projects is one of the main reasons costs remain higher than necessary. It suggests that greater continuity of work, combined with long-term planning and stable funding, could significantly improve efficiency and value for money.

Building on earlier research, the report examines recent electrification schemes delivered on time and within budget, including projects in Scotland and on sections of the Midland Main Line, as evidence that a more consistent delivery model can produce better outcomes.

RIA argues that the industry's current project-by-project approach creates inefficiencies by preventing supply chains from retaining skills, investing in equipment and building long-term expertise. According to the association, this contributes to higher costs and reduced productivity whenever work is paused and later restarted.

The report is particularly critical of the decision to halt further electrification on the Midland Main Line, warning that the move has affected confidence across the rail supply chain.

RIA said:

“The cessation of the project has led to significant redundancies within supply chain businesses involved in the scheme. It further demonstrates that government and some senior industry stakeholders remain unconvinced that continuity in workload is a key enabler for efficiency.

“For some, it seems the electrification is perceived as being too difficult, too expensive and too risky.”

The association described such views as “unambitious and defensive” and called for a renewed commitment to electrification as a central part of rail decarbonisation and network modernisation.

As part of its recommendations, RIA has urged Great British Railways (GBR) to focus on preserving industry capability and delivering short-term benefits through the procurement of battery-electric multiple units while longer-term electrification plans are developed.

Looking ahead, the report identifies the forthcoming Rolling Stock and Infrastructure Strategy, alongside planning for the 2029–2034 funding period, as a key opportunity to establish a rolling programme of electrification projects.

RIA estimates that adopting a production-line style approach to electrification could reduce costs by around 30%. To achieve this, the report calls for a number of strategic changes, including a nationally agreed electrification strategy, long-term funding commitments, closer alignment between rolling stock, signalling and decarbonisation plans, stronger collaboration with the electricity sector and commercial arrangements that reward successful project delivery.

According to the report, many of these principles have already been implemented in Scotland, where electrification costs have consistently been lower than elsewhere in the UK.

RIA Senior Technical Adviser David Clarke said:

“There is a generational opportunity to shape the future of rail electrification and secure an optimum way of both improving performance and reducing the whole life cost and net subsidy level for the railway, with the establishment of GBR next year, the development of CP8/FP1 over the next 12 months and the upcoming rolling stock and infrastructure strategy.”

He added that the report demonstrates how electrification:

“can become significantly more affordable, creating a huge opportunity to boost skills and create new jobs in rail as well as increasing network capacity and reducing costs”.

With Great British Railways expected to take shape over the next year and key funding decisions approaching, the report argues that the coming period represents a critical opportunity to establish a more consistent and cost-effective approach to electrification across the UK rail network.