Power up: Legislation relating to renewable energy helps to generate revenue growth

Over the past decade and a half, a radical shift in focus among the public, policymakers and industry participants towards renewable energy has occurred. 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 15% of energy consumption is satisfied by renewable sources by 2020. In order to meet this target, 30% of UK electricity, 12% of heat and 10% of transport energy must be generated from renewable sources. However, only the former falls within the scope of the industry...read more.

Industry Statistics & Market Size
Revenue
£3.7bn
Annual Growth 14-19
6.5%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
7,557
Businesses
29
Market Share of Companies

Industry Threats & Opportunities

  • Strong growth has encouraged new operators to enter the industry over the past five years
  • Efforts to meet the UK’s renewable energy target have supported growth
  • The current skills shortage could increase wage costs, putting pressure on profit

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    Industry Report - Starting a New Business Chapter

    The barriers to entering the Renewable Electricity industry are high. The cost of establishing the infrastructure required to generate renewable power is the most significant obstacle. Large hydro and wind farm projects require significant capital to set up adequate facilities to make it a viable energy source. Additionally, costs relating to grid connection, upgrades and access can be prohibitive for new players. A high level of expertise is required to enter the industry given its focus on research and development, especially concerning finding and assessing potential renewable sites. However, opportunities exist for niche entrants, given the barrier differences in entering various segments. For...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

    Industry Products

    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

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • EUA prices
  • Research and development expenditure
  • Industrial production index
  • Public concern over environmental issues

    • Current Performance
  • Strong gusts of growth
  • Green targets
  • External competition
  • Renewed regulation
  • Chart: Revenue Growth

    • Industry Outlook
  • Connectivity issues
  • Renewable skills
  • Target in place
  • Carbon market
  • 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

    • Products & Markets

    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 operators
  • Other
  • Transport industries
  • Chart: Major Market Segmentation for the Renewable Electricity Generation Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesFinancing costsDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Renewable Electricity Generation

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

    • Industry Globalization

    Major Companies

    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

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Renewable Electricity Generation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Carbon Price Floor
  • A tax on fossil fuels (solid fuels, gas and LPG) used in electricity generation under climate change levy (CCL) and fuel duty.
    • 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.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Renewable Electricity Generation market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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