Renewable energy sources reported as driver of utility construction
It was reported that in terms of value, 79% of power generation projects over the past five years were related to renewable energy sources, of which 21% accounted for gas and nuclear power.
While construction projects for power generation from solar energy account for the largest proportion of contracts awarded by volume; in terms of value, solar projects represent only 4% of the total value of energy-related construction projects.
Over the period 2016 to 2021, projects in the onshore and offshore wind sector also accounted for barely half of all power generation projects and 58% of all renewable projects.
In order to achieve the government’s ambition of net zero emissions by 2050, more focus is needed on increasing wind and solar power generation.
While most of the generation needed is expected to be provided by renewables, there is also a need for more reliable energy sources such as nuclear or power plants that burn hydrogen or gas with carbon capture and storage. carbon.
“Electricity, a key driver of growth”
In 2020, electrical construction in the UK contributed 41% of total infrastructure works, up from 24% in 2019.
In addition, electrical construction production grew by 66% year-on-year in 2020. Electricity is expected to remain a key driver of medium-term growth in the gas and power market as generation capacity is renewable energy and the production of renewable energies on a larger scale, in particular offshore. wind power and biomass, is commissioned.
“Representing the real-time transition to renewable energy sources”
Laura Pardoe, product manager at AMA Research and editor of the Utility Construction: Gas and Electricity Market Report commented, “This is an incredibly exciting time to watch construction in the energy sector and chart the real-time transition to renewable sources of power generation.
“There has been a 70% increase in electricity generation from renewables since 2016; over the same period, 80% of contract awards were for low-carbon options indicating a clear direction for future travel. The twin driving forces for energy security and carbon neutrality mean that construction projects are focused on producing sustainable energy using natural resources.