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AMA Research has recently published the 1st Edition
of the Wind Power Construction Market in the UK Report, which
provides a comprehensive review of the commercial wind energy
sector.
Global wind capacity is set to increase from 94 GW in
2007 to around 150 GW by 2010, with key growth markets including the
UK, USA and Asia. The wind energy market remains highly concentrated
with the top 10 producing countries accounting for 85% of total
capacity.
The chart, left, illustrates the wind energy capacity
installed in various countries in 2007, together with estimated new
installations in 2010.
Renewable energy is central to the Government's
objectives to reduce carbon dioxide emissions by 60% by 2050 and to
generate 15% of the UK’s electricity supply from renewable sources
by 2020. With onshore wind farms already making a considerable
contribution in the UK, the key opportunities for larger scale
development going forward lie offshore.
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Commercial wind farms currently
produce around 2.5 GW of capacity, less than 2% of the UK’s electricity,
but with one of the best wind conditions in Europe, the wind energy sector
in the UK is expected to be one of the fastest growing markets with around
5.6 GW of capacity already consented and ready to go through to
construction and a further 9.4 GW of capacity still in the planning system
– a 7-fold increase on current capacity.
In 2007, a total of 454 MW was
commissioned in the UK, taking the total installed capacity to 2,545 MW. A
further 1,357 MW is under construction. Out of the large approved offshore
projects, London Array with 271 turbines will provide 1 GW of capacity,
Greater Gabbard 500 MW and Walney 450 MW. Given average UK domestic
electricity consumption, these 3 projects alone could power 1.1 million
homes.
In November of 2007, the
Government announced that it was to set aside large parts of the sea bed
for the development of wind energy, with the potential to build around 33
GW of capacity offshore by 2020, while a further 14 GW of onshore capacity
was also announced in a bid to meet EU targets by 2020 under the Renewable
Energy Directive.
The report reviews the key
issues affecting both the on and offshore wind energy markets including
the estimated costs and timetable for construction, key players involved
and an analysis of the major factors affecting wind farm development such
as planning, turbine availability and connection to the grid. With wind
energy firmly on the Government’s agenda, the report also explores the
market opportunities ahead for the construction industry and the wider
supply chain.
Without doubt, the wind sector
has the potential to become one of the fastest growing sectors within the
construction industry. Assuming all 10,000 turbines are built as
announced, the total investment required to build 33 GW of new offshore
wind and 14 GW of new onshore wind as recently announced by the Government
might therefore be as much as £64billion, though costs remain extremely
difficult to predict given the uncertainty surrounding site developments
and changes in material prices. UK based construction and support services
companies are positioning themselves to win a significant share of the new
wind capacity and a range of major contractors who have a strong track
record in delivering work to both the renewable energy and wind industries
will be in the frame for long term contracts.
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