UK Energy As A Service Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Service Type (Construction, Operation And Maintenance, Energy Optimization And Efficiency), And By End User (Industrial, Commercial) - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061612189 Pages: 80

The UK energy as a service market was evaluated at US$141.604 million for the year 2020 and is projected to grow at a CAGR of 3.52% to reach the market size of US$180.404 million by the year 2027.

Factors such as increasing distributed energy resources, low cost of renewable power generation and storage solutions, smart metering systems, increase in digitalization, and availability of tax benefits for energy efficiency projects contribute to the overall market growth. The main reason for the rising adoption of energy as a service is to reduce the energy costs of the buildings and to reduce the carbon emission in order to maintain the ecological balance. Reducing the rising need for fossil fuels and minimizing the carbon footprint has increased the demand for renewable energy sources, which is expected to positively affect the UK energy as a service market growth. The government of the UK is planning to invest £160 million to upgrade electricity infrastructure across communities like Teesside and Humber in Northern England.

UK Energy-as-a-Service Market Drivers 

  • Growing demand for renewable energy across the country

The UK has generated most of its electricity by burning fossil fuels in the past few years. However, the country is increasingly using renewable energy sources such as wind, nuclear and solar power. The country’s wind energy capacity reached 24.48 GW in 2020, representing an increase of over 2.5% compared to 2019. United Kingdom is also considered the leading country worldwide in terms of offshore wind energy, which has an installed capacity of more than 10.3 GW in 2020. The government of the country is working on several ambitious projects and is aiming to reach 20 GW by the end of 2030. The UK government is working on developing East Anglia Two and East Anglia Three with capacities of 900 MW and 1400 MW, respectively. Such large-scale projects are anticipated to drive the market growth during the forecast period. The country is also operating the world’s largest offshore wind farm, which has a capacity of more than 1.2 GW generated by 174 turbines. The country has generated around 24% of its electricity from wind power in 2020. Growing wind energy makes the UK one of the largest renewable markets, which is expected to drive the energy as a service market across the country.

For instance, the UK government announced that renewable electricity had reduced fossil fuel generation for the very first time in 2020, and it will be the largest source of electricity in the coming years. The government of the country is aiming to build up enough extra offshore wind capacity of 12 GW to power about 8 million homes.

  • Increasing adoption of distributed energy resources

The aging infrastructure of electricity grids has forced utilities to invest in and upgrade their distributed energy resources which include demand-response capabilities, renewable energy, and other technologies to control and reduce energy use in order to manage the electricity bills. Rising investments in distributed energy resources are expected to boost market growth during the forecast period. For instance, the UK is planning to invest billions of amounts in upgrading its electric distribution system and enhancing its capabilities to operate the system. The growing need for distribution systems and rising investments to improve grid efficiency across the country is expected to drive the growth of the overall market.

  • Growing demand for improved grid reliability and outage response

Increased demand for reliable and resilient grid operations in the electric power industry is anticipated to increase the demand for smart grid software which in turn is expected to drive the overall market growth across the country. Moreover, rising electricity demand coupled with the continuous and expanded growth of the share of renewables in centralized and decentralized grids requires an effective new approach to grid management, making full use of “smart grids” and “smart grid technologies,” thus, boosting the demand of the energy market during the given forecast period. Furthermore, growing investments in electricity grids are expected to drive market growth in the coming years.

COVID-19 Insights

The COVID-19 pandemic has negatively impacted the energy sector of the country. There was a sharp decline in the price and demand across the country. The pandemic has impacted the delivery of equipment to power plants. COVID-19 has impacted the supply chain of renewable sources, which in turn has affected the renewable energy companies that cannot meet the deadline for equipment installation.

Segmentation

The UK Energy as a service market has been segmented based on Service Type and End-User.

By Service Type

  • Construction
    • Operation & Maintenance
    •  Energy Optimization and Efficiency
  • By End-User
    • Industrial
    • Commercial 

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation


2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions


3. EXECUTIVE SUMMARY
3.1. Research Highlights


4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis


5. UK ENERGY AS A SERVICE MARKET, BY SERVICE TYPE
5.1. Introduction
5.2. Construction
5.3. Operation & Maintenance
5.4. Energy Optimization and Efficiency
5.5. Others


6. UK ENERGY AS A SERVICE MARKET, BY END-USER
6.1. Introduction
6.2. Industrial
6.3. Commercial


7. COMPETITIVE ENVIRONMENT AND ANALYSIS
7.1. Major Players and Strategy Analysis Ranking of Players & Market Structure
7.2. Recent Investments & Deals
7.3. Vendor Matrix Analysis


8. COMPANY PROFILES
8.1. EDF Energy
8.2. ENGIE
8.3. E.ON
8.4. Npower
8.5. Scottish Power Ltd.

EDF Energy

ENGIE

E.ON

Npower

Scottish Power Ltd.

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