More Than 120 Large-Scale Solar PV Farms Approved for Construction in the UK, According to NPD Solarbuzz
Investment firms rush to accumulate PV assets based on UK's growing solar farm capacity.
Santa Clara, Calif. April 28, 2014
The United Kingdom is forecast to be the largest solar photovoltaic (PV) market in Europe in 2014, fueled by the rapid growth in ground-mounted solar PV farms. More than 120 large-scale solar PV farms in the U.K. have recently received project-planning approval, and many of them are targeting completion within the next 12 months, according to the new NPD Solarbuzz UK Deal Tracker report.
"In the past six months, the Department of Energy and Climate Change released the United Kingdom's ‘Solar PV Roadmap' and ‘Solar PV Strategy' reports, restating aspirations to hit 20 gigawatts (GW) of cumulative capacity by 2020," noted Finlay Colville, vice-president at NPD Solarbuzz. "While reaching the long-term goal is expected to involve a blend of rooftop and ground-mounted systems, solar PV farms above 10 megawatts will provide the dominant contribution in 2014."
By the end of April 2014, more than 325 solar PV farms in the megawatt (MW) class will have been completed within the U.K., with more than 60 different sites having an installed capacity in excess of 10 MW.
An additional 444 large-scale ground-mounted solar PV farms are currently at various stages of planning in the U.K., with 124 having planning applications approved and seeking to be installed before the level of support under the Renewable Obligation scheme is reduced in April 2015.
"With the UK projected to be the largest solar PV market in Europe in 2014, global component suppliers and project developers need to quickly understand the dynamics of the U.K. solar PV industry," added Colville. "Aligning with suitable partners and choosing the most attractive PV projects in the pipeline will ultimately determine the winners and losers over the next 12 months."
In addition to the opportunities arising from the multi-gigawatt pipeline of projects yet to be built, a thriving secondary market has developed for completed solar PV farms. Based on recent acquisitions of completed solar farms, the U.K.'s existing solar farm portfolio is valued at approximately £2.5 billion ($4.2 billion).
"Establishing a large portfolio of solar PV assets has become an attractive long-term financial proposition within the United Kingdom," according to Colville. "The race is now on to develop and acquire solar PV farms, before the Renewable Obligations scheme is discontinued in 2017, or ahead of any legislative changes that may occur after the May 2015 general elections."
For more information about the NPD Solarbuzz UK Deal Tracker report, contact Charles Camaroto at 888-436-7673 or 516-625-2452, or e-mail contact(at)displaysearch(dot)com.
About NPD Solarbuzz
NPD Solarbuzz, part of The NPD Group, offers Marketbuzz, Solarbuzz Quarterly, and annual downstream photovoltaic (PV) market reports, providing the solar energy and PV industries with global historical and forecast data for the PV supply chain. For more information, visit http://www.solarbuzz.com or follow us on Twitter at @Solarbuzz.
About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Practice areas include automotive, beauty, consumer electronics, entertainment, fashion, food/foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.