Construction in the UK’s offshore wind sector reached an impressive high in 2016, with total construction value set at £4.1 billion, increasing from £2.45 billion in 2015, and accounting for 21% of all UK construction contract value in the year.
New analysis from Barbour ABI, a leading provider of construction intelligence services, highlighted the “bumper year” the UK offshore wind sector experienced, from the point of view of the construction sector. Offshore wind farms accounted for 42% of all UK construction contract value in the utilities and power sector, and 21% of the country’s entire infrastructure sector.
Further, Barbour ABI predicts that this trend is only set to continue through 2017, with a healthy pipeline of future offshore wind projects set to make 2017 another strong year, and up to £23.2 billion worth of construction contract value already in planning.
“Back in 2013 offshore windfarms accounted for only 7.5% of the annual construction value for the utilities and power sector, which increased to 42% in 2016, on the back of significant investment in this type of project,” explained Michael Dall, lead economist at Barbour ABI. “With reports showing that the cost of producing electricity in this way have fallen significantly, the increase in construction value makes sense.”