Making waves: Government targets and strong demand support industry revenue growth

The composition of UK energy production has undergone substantial change in recent years, guided by a radical shift in focus among the public, policy makers and industry participants towards renewable energy. Increased awareness about the impact of climate change has driven an aggressive decarbonising strategy, spearheaded by the Renewable Electricity Generation industry. Under the National Renewable Energy Action Plan, which was drawn up in response to EU legislation, the United Kingdom aims to ensure that 30% of electricity generation is satisfied by renewable sources by 2020. Significant expansions of renewable generating capacity have left the United Kingdom well placed to achieve this target, and according to government figures, approximately 33.3%...read more.

Industry Statistics & Market Size
Revenue
£4bn
Annual Growth 15-20
6.6%
Forecast Growth 20-25
Profit
Employment
9,139
Businesses
30

Industry Threats & Opportunities

  • Improving demand conditions have encouraged new players to enter the industry
  • Wind generation capacity has increased over the past five years, supporting revenue growth
  • There is currently a skills shortage in the industry, which could result in higher wages in the future
  • Industry Report - Industry Analysis Chapter

    The United Kingdom is in a strong position to generate electricity from a variety of renewable sources, particularly from wind power, but the full development of the UK’s renewable infrastructure depends on government assistance and incentives. Though overall electricity consumption has declined over the past five years, rising public concern regarding environmental issues, in addition to the implementation of stringent policy and government initiatives to aid the pursuit of both short-term and long-term climate change targets, has supported demand for renewable electricity. Under the National Renewable Energy Action Plan, which was drawn up in response to EU legislation, the United Kingdom aims to ensure that 30% of electricity generation is satisfied by renewable sources by 2020. Thi...purchase to read more.

    Additional Insights for the Renewable Electricity Generation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Renewable Electricity Generation Industry are

  • Must comply with government regulations
  • Optimum capacity utilisation
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as EUA prices and Research and development expenditure in the Renewable Electricity Generation industry impact industry performance..

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    What's in this report

    What is the Renewable Electricity Generation Industry?

    This industry comprises establishments that generate electricity from renewable natural resources such as sunlight, wind, tides and biomass. It only includes the generation of electricity from sources that are inexhaustible and can be replenished indefinitely, unlike fossil fuels such as coal. This industry does not include transmission or distribution activities.

    Industry Products
  • Offshore wind power
  • Onshore wind power
  • Solar photovoltaics
  • Hydropower
  • Bioenergy
  • Industry Activities
  • Wind power generation
  • Hydroelectricity generation
  • Wave and tidal energy generation
  • Solar thermal energy generation
  • Solar photovoltaic energy generation
  • Geothermal energy generation
  • Biomass energy generation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • EUA prices
  • Research and development expenditure
  • Industrial production index
  • Public concern over environmental issues

  • Current Performance
  • Green targets
  • Strong gusts

    of growth

  • External competition
  • Renewed regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Connectivity issues
  • Renewable skills
  • Target in place
  • Wind power
  • Table: Renewable Electricity Generation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Renewable Electricity Generation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity Supply

  • Key Selling Industries
  • Engine & Turbine Manufacturing

  • Products & Services
  • Bioenergy
  • Onshore wind power
  • Offshore wind power
  • Solar photovoltaics
  • Hydropower
  • Chart: Renewable Electricity Generation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Manufacturing industries
  • Commercial premises
  • Other
  • Transport industries
  • Chart: Major Market Segmentation for the Renewable Electricity Generation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Renewable Electricity Generation

  • Basis of Competition
    External competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Renewable Electricity Generation Industry

  • Industry Globalization
    SSE plc, Scottish Power UK plc, E.ON UK plc, Innogy Renewables UK Ltd,
  • Table: SSE plc - financial performance
  • Table: Scottish Power UK plc - financial performance
  • Table: E.ON UK plc - financial performance
  • Table: Innogy Renewables UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Renewable Electricity Generation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Renewable Electricity Generation Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbon Price Floor
  • A tax on fossil fuels (solid fuels, gas and liquefied petroleum gas) used in electricity generation under climate change levy and fuel duty.
  • Contracts For Difference (Cfd)
  • A contract that stipulates that a seller will pay to a buyer the difference between the current value of an asset and its value at contract time.
  • Installed Capacity
  • A measure of the potential output of a power plant.
  • Photovoltaics (Pv)
  • A method of generating electrical power by converting solar radiation into direct current electricity using semiconductors.
  • The Renewables Obligation (Ro)
  • The Renewables Obligation places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Renewable Electricity Generation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Renewable Electricity Generation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Renewable Electricity Generation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Renewable Electricity Generation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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