Market Trends of United Kingdom Power EPC Industry
This section covers the major market trends shaping the UK Power EPC Market according to our research experts:
Growth in Renewable Energy Sector
- Production and consumption of energy from renewable sources has been steadily increasing in the United Kingdom, since 2000. The rise has been driven by both national and international incentives, including the EU Renewable Energy Directive, which requires EU as a whole to achieve 20% of its energy from renewable sources by 2020.
- The 2009 Renewable Energy Directive sets a target for the United Kingdom to achieve 15% of its energy consumption from renewable sources, by 2020. This compares to only 1.5% in 2005. Furthermore, the government has already announced the closure of all coal-fired power plants, by October 2025.
- Similarly, pledges, such as pledge to cut-down by 2050 to a ‘net-zero’ state, governments policies, such as establishment of Carbon Tax on thermal power plants and establishment of Contracts for Difference (CfD) mechanism, coupled with falling cost of equipment and energy storage systems, are expected to further supplement the demand for renewable energy growth in the country.
- Moreover, with the declining cost of solar equipment and establishment of capital market for electricity generation, the country is expected to witness increased uptake of subsidy-free solar projects in the coming years.
- Furthermore, with the opening up of competitive market in the country, several coal-based power plants are expected to be converted into bioenergy-based power plants. With the country’s increasing quest for carbon-free energy generation, the demand for installation of renewables is expected to further increase in the coming years.
Understand The Key Trends Shaping This Market
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