The UK power rental is forecast to reach a value of $429.8 million by 2029 from $303.1 million in 2022, growing at a CAGR of 5.12% from 2022 to 2029
National Grid has submitted its application as of November 2022 for development consent to the Planning Inspectorate for the Yorkshire Green Energy Enablement Project. Should the project receive consent, the reinforcement works would begin in the summer of 2024 and be operational in 2027. The project forms part of the electricity network upgrades identified across the UK to help deliver the government's net zero targets for 2050.
Storm Franklin severely impacted parts of the UK with strong winds and heavy rain in February 2022. UK Power Networks believed it had restored electricity to 98% of properties across east and south-east England, but 8,500 remained without power during the storm. These situations will require backup power, and rental power equipment could bring situations under control. These naturally occurring calamities will push UK power rental market growth.
Battersea Power Station, which had been decommissioned, is now being reconstructed in seven phases with a capital of USD 11 billion. The main focus of this project is to bring the 80-year-old structure converted into a mixed-use development that comprises several restaurants, shops, bars, residential units, and office spaces. The whole project is expected to be completed by 2025.
Construction 2025' is a joint strategy that sets out the sector and government to work in partnership to put Britain at the front position of global construction over the coming years. Additionally, the construction of a few energy projects in the UK, such as the Clay Tye battery storage site in Essex (99MW) and the Kype Muir onshore wind farm extension in South Lanarkshire with a capacity of 155 MW, are likely to push the UK power rental market demand.
Aggreko had been the Official Modular Energy Solutions supporter for Birmingham 2022. It supported various major venues, such as Alexander Stadium and Coventry Stadium & Arena, to other key sites, including the Birmingham 2022 Athletes' Villages at the University of Birmingham and the University of Warwick.
It provided 117 of the latest stage V generators with a range of 30KVA -600 KVA, which used HVO as fuel in October 2022. Aggreko also produced around 10.8 MWh of clean solar energy at Victoria Park in Royal Leamington Spa with the help of hybrid generators.
MARKET TRENDS & DRIVERS
Governments' Focus on Clean Energy and Investments Are Likely to Propel the UK Power Rental Market
In 2021, the government planned to increase its offshore wind power capacity from 30GW to 40 GW in 2030. The plan aims to reach net-zero emissions by 2050, aligning with the global climate goals listed in the Paris Climate Agreement. An investment of USD 223 million is planned to upgrade the country's port. In 2021, the government announced investments of USD 132 million in constructing two offshore wind ports.
Aggreko collaborated with the R&A to deliver a renewable energy solution at the 149th Open Championship, held at Royal St George's Golf Club in Sandwich, England, between 11 to 18 July 2021. The hybrid system is a significant development in Aggreko's Net Zero path since it will cut carbon emissions by up to 40% compared to the older fossil fuel systems. Two renewable microgrids from Aggreko were delivered, and they will provide 100 percent reliable electricity without a connection to the grid. Since the solution was deployed in March 2021 for the event's setup, it has already produced over 21000 kWh of solar energy and saved 25 tons of CO2. Moreover, for the first time in The Open's history, all of the site's generators had operated on HVO, a sustainable biodiesel.
The UK government funded USD 9 million for 24 projects under the Longer Duration Energy Storage (LODES) competition. This funding is projected to support the development of new energy storage technologies, help the UK transition to renewable energy sources, and further contribute to the UK power rental market.
UK's plan 'Build Back Greener' and 'Net Zero Strategy' 2021 has prompted the development of the UK's first decarbonized industrial cluster. Additionally, the UK government has also committed to unlock USD 95.92 billion for private investment by 2030 and support the development of green industries by 2050.
Approval of Various Standards and Guidelines to Enhance the Safety Aspect of Fuels or Equipment
The government had approved HVO as renewable fuel as it has met the EN15940 standards, and imports of HVO are being certified by (SCC (International Sustainability & Carbon Certification). As of March 2022, Aggreko had also switched its operations to HVO and only stocked white HVO fuel at their depots. Businesses will be forced to transition to HVO (Hydrotreated Vegetable Oil) due to government reforms affecting red diesel starting on 1 April 2022. Nitrogen dioxide and Carbon monoxide emissions are greatly reduced and eliminated using HVO.
The UK government is expected to invest USD 4.3 billion in constructing 40 hospitals by 2030. The government is implementing new guidelines that will help to standardize the design for new hospitals and use modular construction methods to accelerate the building program. The government had also announced USD 1 billion for upgrading its facilities in the existing 20 hospitals. This construction plan is expected to drive the demand UK power rental market.
The United Kingdom (UK) has proposed a new temporary Electricity Generator Levy, which will apply from 1 January 2023. This levy is separate from the Energy Profits Levy, which applies to the oil and gas sector. The government has not yet published draft legislation, but it has issued a technical note on the proposals, summarized in this alert.
VENDOR LANDSCAPE
The key players in the UK Power Rental market are United Rentals, Sunbelt, Aggreko, Speedy, Atlas Copco, Caterpillar, Cummins, and Kohler power.
The top 4 prominent vendors, including United Rentals, Sunbelt Rentals, Aggreko, and Speedy, account for 44% of the UK Power Rental market share.
Sunbelt introduced alternative fuel to its UK hiring equipment with combustion engines, which involves burning fossil-fuel-based red diesel.
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