Project Insight - Power Generation Construction Projects: The Americas

Project Insight - Power Generation Construction Projects: The Americas

Summary

The US is the dominant economic market in the Americas and is the world’s second largest energy consumer after China. Energy consumption in the US in 2017 stood at 2,235 million tonnes of oil equivalent (mtoe), ahead of 349 mtoe in Canada and 294 mote in Brazil (Latin America’s biggest economy). According to the US Energy Information Administration (EIA), natural gas provided the highest amount of electricity generation in 2018, with 35.1%, followed by coal with 27.4%, nuclear with 19.3% and renewable sources with 17.1%. Of the renewable energy sources, hydroelectric made up 7% of total energy production.

Canada, which is in the second place for the value of power generation construction projects tracked by GlobalData, is an exporter of dry natural gas to the US, although most of its energy needs are provided by hydroelectric power, which represented 56% of the country’s electricity generation in 2017.

In Brazil, the hydropower sector also makes up for the majority of the country’s total energy capacity and satisfies more than three-quarters of electricity demand. However, the country has committed to expand its non-hydro renewable sources to 48% by 2026 under its 10-Year Energy Expansion Plan 2026. Given its abundant resources, Brazil has a lot of potential to generate electricity not only from water but also from renewable sources such as wind, solar and biomass.

The report provides analysis based on CIC projects showing total project values for the Americas 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.

GlobalData is currently tracking 1,402 power generation construction projects across the Americas at all stages of development, from announcement to execution. Collectively these projects are valued at US$825.3 billion.

Scope

- Wind projects account for the highest value of projects in the pipeline, with a value of US$243.1 billion, followed by hydroelectric power projects with US$177.5 billion. The pipeline of nuclear project projects is valued at US$130.8 billion, while gas and solar projects are valued at US$121.4 billion and US$116.8 billion respectively. North America leads in the sectors of wind, nuclear, gas, biomass and ocean power generation, while Latin America dominates in sectors such as hydroelectric power (the region’s main source of energy), solar, coal and geothermal.
- Projects in the planning stage have a total value of US$401.2 billion, followed by projects in execution with US$246.4 billion. Projects in the pre-planning stage amount to US$112.6 billion, while those at the pre-execution stage total US$65.0 billion. Assuming all projects proceed as planned, total spending could reach US$60.4 billion in 2020 and US$83.6 billion in 2021.
- Projects funded by the private sector account for 64% of the total pipeline, followed by 22.1% by the public sector and 13.9% by a mix of public and private funding mechanisms. North America has the highest proportion of privately-financed projects, with 67.3%, while Latin America has the highest ratio of publicly-financed projects with 72.3%. Latin America also has the highest share of projects being financed by a combination of public and private funding sources, with 56.3%, in comparison to 43.7% in North America.
- The US accounts for five of the top 10 projects in the Americas region, followed by Canada with three, and Brazil and Bolivia with one each. Situated in Panhandle, Texas, the Mariah Wind Farm, valued at US$22 billion, is one of the largest power generation construction projects in the pipeline. The project, which is being developed in three phases by Scandia Wind, will generate a total of 10,000MW of power when fully developed.
- Based on the data available of tracked projects, the Americas should deliver a total of around 364GW of generating capacity by 2025, with North America responsible for 192.3GW and Latin America responsible for 172.8GW.

Reasons to buy

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