Energy Meltdown

The renewable energy sector is currently in turmoil. There has been a marked shift in Government policy since the General Election as the new Conservative administration has called a halt to new on-shore windfarm projects and cut sharply the feed-in tariff (FIT) for other renewables such as Photovoltics. 

Many developers and house householders are reviewing and cancelling plans for renewable energy projects in light of the policy shift, prompting contractors and suppliers to consider exiting the sector or even to wind-up their business. 

However, whilst the renewables energy sector clearly faces a difficult 2016, opportunities still remain for the fleet of foot. Glenigan can help.

Energy efficiency and renewables remain key components in designers’ toolkits when delivering BREEAM rated buildings. Glenigan, in partnership with BRE, publishes unique data on BREEAM projects. Our project database holds information on a growing number of projects, which are increasingly being built to the highest BREEAM ratings of Excellent and Outstanding.

The existing development pipeline will also continue to offer opportunities for installers and suppliers. In some cases renewables were specified in the planning consent, presenting developers with the cost and potential delay of submitting a revised application or pressing ahead with the existing scheme despite the drop in FIT rates. Glenigan’s project database can identify projects involving renewables such as PV.

Longer term the demand for renewables should remain. The emerging gap in UK generating capacity will not be filled by new nuclear facilities. The financial viability renewable schemes also continues to improve as material costs such as the price of PV panels falls: The concern in the industry is not that Government support has been cut, but that it has been cut too deeply and rapidly. Firms that can weather the impending storm will be well placed to capture this long term demand.