Project Insight - Power Generation Construction Projects: Europe

Project Insight - Power Generation Construction Projects: Europe

Summary

Europe’s mature power generation market is set to decline in terms of consumption levels, in line with the power generation strategy for EU countries. The EU’s Energy Efficiency Directive and the Renewable Energy Directive set targets for energy efficiency (reductions in energy production) and for the share of energy needs delivered from renewable sources. According to the BP Statistical Review, energy consumption in Europe (including Russia) was 2,668 million tonnes oil equivalent (Mtoe) in 2017, with Russia, Germany and France leading with 698.3, 335.1 and 237.9 Mtoe respectively. Although this was an increase on the previous year, consumption levels are declining in Europe, in contrast to the positive growth in emerging markets.

The directives relative to renewables are reflected in the energy mix in the power generation construction projects pipeline. GlobalData is currently tracking power generation construction projects in Europe with a total value of US$693.2 billion, which includes projects from the announced to execution stages. Western Europe’s project pipeline totals US$380.2 billion, ahead of Eastern Europe with US$313.0 billion.

The report provides analysis based on CIC projects showing total project values for Europe and analysis by stage and funding for the top ten countries. The top 50 projects are listed for the region giving country, stage, value and type of power generation construction. Values by ten types of project power categories are given, including nuclear, wind, coal and biomass. Power generation capacity (MW) analysis is also provided. Ranked listings of the key operators for the sector are also provided showing the leading contractors, consulting engineers and project owners.

Scope

- For Europe as a whole, the project pipeline for wind power projects has the highest value, at US$269.6 billion, just ahead of nuclear power projects, with US$241.6 billion. Wind power is by far the most dominant type of power project in Western Europe, accounting for 61.4% of the total pipeline, ahead of nuclear with 14.1%.
- Assuming all projects proceed as planned, the current pipeline of projects will deliver 251.5GW of generating capacity, with 115.5GW in Eastern Europe and 136.0GW in Western Europe. For the region as a whole, wind power projects have a combined generating capacity of 91.2GW, of which 74.1GW is accounted for by Western Europe.
- The pipeline has a relatively high proportion of early stage projects, with projects at the planning stage having a total value of US$306.1 billion, and those at the earlier stages (of announcement and study) totaling US$78.5 billion.
- Funding for projects in the pipeline is predominantly private, with privately-funded projects accounting for 54% of the total, followed by public with 25%. Joint public and private investment is responsible for 21% of power generation project investment in Europe as a whole.
- The UK has the highest-value project pipeline for Europe, with US$238.4 billion, reflecting large-scale investments in new wind power generation projects.
- The highest value project in Europe is the US$37.5 billion Sinop Nuclear Power Plant in Turkey. However, the project has been long delayed, and there are rising concerns that the Japanese-French consortium comprising Mitsubishi Heavy Industries and Areva will pull out of the project owing to rising costs.

Reasons to buy

- Gain insight and see forecasts for the power generation construction sector.
- Assess all major projects by value, start date, scope and stage of development for the region and top 10 countries to support business development activities.
- Plan campaigns by country, based on specific project opportunities and align resources to the most attractive markets.