The Energy sector is key for global sustainability and a successful UK Economy. There are opportunities through all tiers of the supply chain - in modernising traditional energy sectors, developing Renewables markets, zero carbon and new technology.
In 2019 (last quarter), nearly 40% of the UK's Electricity was supplied by Renewables, of which 20% was wind and 6% solar power. For the first time, zero carbon sources - wind, nuclear, solar and hydro generated more electricity for the national grid than fossil fuels.
Construction at Hinkley Nuclear Power Plant is moving forward. It is anticipated that the site will be operational in 2025. Currently, the largest crane in the world is on site - heavy lifting 600 prefabrications into place. Elsewhere in the UK, there are currently 7 nuclear sites in operation, accounting for approximately 12% of electricity generation. Planning permission is currently under review for Sizewell 'C' and Wylfa Newydd. Gas-fired power accounts for 38% of the UK energy mix.
There is still uncertainty in the marketplace - government policy, planning consent issues at local level, feed-in tariffs, project viability for the energy companies and investors, implementation of global policy on climate change and low carbon, aswell as safety issues concerning Nuclear and dcommissioning issues in the Nuclear and the North Seas. Covid 19 is very likely to create more uncertainty in investment decisions, timescales and project delays.
Paris Accord on Climate Change - there has been great support for the Paris Accord from nearly all countries, notably EU, China and India despite President Trump's decision to renegotiate the US position - even some US States have indicated that they will continue to target the Acord's objectives independently.
In 2019 /20, potential Chinese, Japanese and US investment in the UK energy sector appears to be having a positive impact on Renewables projects.
GRA keeps up to date with market, new build and investment trends and governnment energy policy, updating information accordingly to identify new opportunities throughout the supply chain. There is increasing emphasis on Zero Carbon and ongoing developments in Renewables, aswell as the implementation of nuclear policy.
UK Energy Mix - Recent Market Developments, Trends and Opportunities include;
- Wind accounts for almost 20% of electricity generation (split between offshore and onshore) of electricity generation.
- Solar accounts for 6% of the market - developments in Solar / Photovoltaic technology to increase the adoption rate.
- Hinkley Nuclear Power Plant now well under construction although costs are increasing. It is anticipated to be operational in 2025.
- Conversion of coal power stations to gas and biomass.
- Biomass accounts for 12% market share - mainly from Drax and Lynemouth.
- Developments in EfW (Energy from Waste) and recycling generally, reduction in Landfill.
- High growth in Anaerobic Digestion & Biogas - local authority, municipal waste, agriculture and food industry.
- CHP schemes - often joint ventures between Energy and Manufacturing companies.
- Growth in Hydro and uptake of Micro Hydro technology. Steady stream of new projects.
- Total's new Laggan Tormore Natural Gas Plant on Shetland has commenced production.
- UK growth in Offshore Wind, consolidation and Round 3 Plans. Dong has gone ahead with expansion at Burbo Bank (quadrupling capacity), also expansion at East Anglia, Beatrice and Hornsea offshore wind projects. However, other projects eg Celtic Array / Rhiannon and Cumbria have been postponed or delayed indefinitely.
- Limited implementation in Wave and Tidal projects.
- Shale Gas - continuing controversy about environmental impact of shale gas.
- Advances in geological and drilling technology potentially extending scope and life in North Sea Oil and natural gas fields - although the potential has been significantly curtailed by the reduction in oil price, particularly following Covid 19 pandemic and over supply issues.
International Leaders in Renewables Energy
The following countries are global leaders in specific Renewables markets, or in the case of smaller nations renewables already account for upto 100% of electricity generation:
Sweden, Nicaragua, Germany, UK & Ireland, Uruguay, China, Morocco, USA, Norway, Brazil.
Extensive research has been conducted amongst equipment suppliers, specifiers and decision-makers at Energy and Utilities companies, aswell as the manufacturing supply chain. Research and prospecting covers established energy sectors / technologies eg power stations, natural gas, nuclear and CHP aswell as renewables, hydro, AD, biogas, wave, marine current and other developing technologies.
Decision-making procedures are often complex and it is usual to contact many decision-makers across organisations covering; engineering, procurement, maintenance and plant management, project
management, operations, consultants and other specifiers. Information and databases need to be continuously updated and energy project timescales, construction plans and
logistics taken into consideration.
There are opportunities for manufacturing and service organisations. GRA targets these opportunities whilst taking into account the challenges facing the supply chain and overcoming barriers to entry.
Marketing - Research - Strategy UK & International
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