Bright spark: Rising wholesale electricity prices are expected to support revenue growth in 2017-18

The Electricity Production industry's revenue is expected to expand at a compound annual rate of 1.2% over the five years through 2017-18. However, falling wholesale electricity prices coupled with low demand for electricity have limited growth. During the current year, industry revenue is expected to increase more strongly, by 4.1% to reach £17.5 billion, as wholesale electricity prices are expected to rise. IBISWorld estimates that in 2017-18, natural gas will be used to generate 45.7% of total electricity produced in the United Kingdom, followed by renewables at 25.5%, nuclear at 22.3%, and coal, accounting for only 4.5%...read more.

Industry Statistics & Market Size
Revenue
£17.5bn
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
34,528
Businesses
158

Industry Threats & Opportunities

  • The industry’s development is increasingly dependent on regulation and pollution targets
  • The share of electricity generated by nuclear power stations has risen over the past five years
  • Growth in the number of industry enterprises is anticipated to slow overthe next five years
  • Industry Report - Industry Analysis Chapter

    The performance of the Electricity Production industry is primarily dependent on demand for electricity, which is affected by population trends and overall levels of economic activity. In the light of current regulatory conditions, intended to cut greenhouse gas emissions and expand renewable energy generation, the industry has become increasingly focused on pollution targets, which are shaping its development. The government has set a target to ensure that 15% of final energy consumption comes from renewable sources by 2020. Meeting this target will require approximately 30% of electricity production to come from renewable sources. Currently, the United Kingdom is on track to meet the electricity target. Ove...purchase to read more.

    Additional Insights for the Electricity Production Industry

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

  • Ability to accommodate environmental requirements
  • Optimum capacity utilisation
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as EU carbon price and Total electricity consumption in the Electricity Production industry impact industry performance..

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    What's in this report

    What is the Electricity Production Industry?

    Firms in this industry produce electricity by burning fossil fuels such as gas and coal. They also operate nuclear power stations, hydroelectric plants and stations fuelled by renewable sources such as wind or biomass.

    Industry Products
  • Gas-fired electricity
  • Coal-fired electricity
  • Nuclear power
  • Offshore wind
  • Oil and other
  • Solar and onshore wind
  • Biomass
  • Hydro
  • Industry Activities
  • Generating electricity in gas-fired plants
  • Generating electricity in coal-fired plants
  • Generating nuclear power
  • Generating hydroelectric power
  • Generating electricity from renewable sources such as wind, solar and biomass
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • EU carbon price
  • Total electricity consumption
  • World price of natural gas
  • World price of steaming coal

  • Current Performance
  • Fuel mix
  • Nuclear impact
  • Concerning carbon
  • Renewables support
  • Chart: Revenue Growth

  • Industry Outlook
  • Policy effects
  • Nuclear future
  • International connections
  • Table: Electricity Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Electricity Transmission

  • Key Selling Industries
  • Crude Petroleum & Natural Gas Extraction
  • Hard Coal Mining
  • Nuclear Fuel Processing

  • Products & Services
  • Gas-fired electricity
  • Nuclear power
  • Solar and onshore wind
  • Biomass
  • Coal-fired electricity
  • Offshore wind
  • Oil and other
  • Hydro
  • Chart: Electricity Production Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Electricity Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Production Industry

  • Industry Globalization
    EDF Energy Holdings Ltd, Drax Power Limited, RWE Generation UK Holdings plc, SSE plc, Centrica plc, Scottish Power UK plc,
  • Table: EDF Energy Holdings Ltd - financial performance
  • Table: Drax Power Limited - financial performance
  • Table: RWE Generation UK Holdings plc - financial performance
  • Table: SSE plc - financial performance
  • Table: Centrica plc - financial performance
  • Table: Scottish Power UK plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Production 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 Electricity Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbon Capture And Storage
  • A process that extracts carbon dioxide before or after fuel is burned. It is then stored underground or under the sea.
  • Combined-Cycle Gas Turbine (Ccgt)
  • Electricity generating turbines that use waste heat from the gas-firing process to produce more electricity.
  • Photovoltaics (Pv)
  • A method of converting solar energy into electricity.
  • Steaming Coal
  • Also known as thermal coal, steaming coal is coal used for its heating value, typically in electricity generation.
  • Terawatt-Hour
  • A unit of electrical energy. One terawatt-hour is equal to a sustained power of approximately 114 megawatts for a period of one year.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electricity Production 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 Electricity Production:
    • 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 Electricity Production 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 Electricity Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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