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Activity in the offshore windfarm sector reached a record high in 2016, as the total construction value for projects reached £4.1 billion, increasing from £2.45 billion in 2015.

According to the latest data from construction industry analysts Barbour ABI, offshore windfarms alone accounted for 42 per cent of UK construction contract value in the utilities and power sector and 21 per cent of the entire infrastructure sector. This trend is likely to continue with the pipeline for future offshore wind developments looking healthy, with Barbour ABI reporting that £23.2 billion pounds worth of construction contract value is in planning.

Offshore

Three major projects that made a significant difference to the increase in construction contract value for offshore wind farms in 2016 were the Beatrice, Galloper and East Anglia one offshore wind farm projects, together worth a combined £3 billion pounds, which once constructed will produce over 1,600 MW of renewable energy per hour.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “Back in 2013 offshore windfarms accounted for only 7.5 per cent of the annual construction value for the utilities and power sector, which increased to 42 per cent in 2016, on the back of significant investment in this type of project.

“With reports showing that the cost of producing electricity in this way have fallen significantly, the increase in construction value makes sense.”

“We have also seen a large uptake in the planning pipeline for future offshore windfarms with £23.2 billion worth of construction planned over the coming years, suggesting this burgeoning sector will continue to expand in 2017 and beyond.

Controversial plans to construct a nuclear power plant in the UK have been delayed following the government postponing any final decision until early autumn. Meanwhile, new official UK electricity statistics indicate that renewable technology is currently outperforming coal in terms of energy generation.

Prior to today’s announcement that the project would be delayed, French firm EDF were financing the majority of the £18bn Hinkley Point C project in Somerset, and final contracts were due to be signed this week.

However, Business Secretary Greg Clark has now said that the government will have to “consider carefully” before backing the original plans.

The project has raised serious concern over both environmental impact and ever-rising costs, which make it a costly carbuncle rather than a real asset to Britain. There are also questions being raised about the fact that the plant is being built by foreign governments. For example, around 30% of the £18bn cost is currently being provided by Chinese investors.

Stop Hinkley Spokesperson Allan Jeffery commented “Now even the financial press says Hinkley Point C has become a laughing stock.

“The cost keeps rising while the cost of renewables is falling rapidly, and the potential to make savings with energy efficiency is huge. We could replace Hinkley much more quickly and cheaply without the safety fears and without producing dangerous waste we don’t know what to do with.”

Renewables

In other energy news, the Government’s new annual energy statistics show that renewable energy sources are replacing coal as mainstream technologies generating power for British homes, offices and factories.

Renewables-BS-article

Today’s figures confirm that 25% of the UK’s electricity was generated from renewables last year – an increase of 29% on 2014. Nearly half of this (48%) came from wind power alone. 1 in 8 units of electricity generated in the UK came from wind.

In comparison, coal generated 22% of the country’s electricity – down from 30% in 2014.

RenewableUK’s Deputy Chief Executive Maf Smith said “The Government took the right decision when it announced the phasing out of coal. Now we can see renewable energy filling the gap, replacing old technology with new. 2015 was the first year that renewables outperformed coal.

“A quarter of Britain’s power is now coming from wind, wave and tidal power and other renewable energy sources. Renewables are now part of our energy mainstream, helping us modernise the way we keep the lights on by building new infrastructure for the generations to come.”

The contribution of offshore wind grew by 30% in 2015, while onshore wind grew by 23%. The Department for Business, Energy and Industrial Strategy, which published the figures, said this was due to increases in capacity, load factors and higher wind speeds.

The Government’s latest poll on the public’s views on energy, the Public Attitudes Tracking Survey, was also published today. It showed that 76% of people support renewable energy. 70% of people also said renewable projects provide economic benefits to the UK.