Encouraging levels of new projects are emerging across the global energy industry, according to EIC Monitor, a quarterly report from the EIC, the leading trade association for UK companies that supply goods and services to the energy industries worldwide. EIC monitor reports newly announced projects across the global energy supply chain.
The Q3 (July – September 2010) report reveals that the power and renewables sectors are holding their strong position as the dominant sectors of the industry, accounting for over two thirds of all new projects and investment potential in Q3 2010. The upstream and downstream sectors have both seen a decrease in new project numbers since the previous quarter, while the midstream sector has shown a rise in activity.
EIC Monitor tracks over 8,000 active and future projects in the global energy industry and provides an industry barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power and the renewables sectors. Data is analysed by the number and value of new, active and proposed projects recorded by the EIC each quarter.
Overall this quarter, the total number of new projects has remained virtually static since the previous quarter and is still slightly lower on the same quarter in 2009. Potential investment value has fallen by around 17% since the same quarter last year. In Q3 2010 there were 413 new projects across the global energy supply chain with an estimated total value of $301 billion (€216 billion), compared to 414 in Q2 2010 totalling $300 billion (€215 billion) and 473 new projects in Q3 2009 worth $364 billion (€261 billion).
In the power sector, there has been an increase in the number of projects together with an increase in the total investment value, up by 13%, while the number of new projects in the renewables sector has dropped slightly from the previous quarter although the value of these has dropped more sharply.
Commenting on the EIC Monitor, Mike Major, CEO of the EIC said: “It is encouraging to see that the EIC Monitor is showing that the global energy industry is remaining steady despite the ongoing harsh economic climate. China, India and the USA have some of the largest projects this quarter, but we continue to see a wide variety of new projects globally, with the power and renewables sectors accounting for the lion’s share of investment potential.”
Decrease in renewable projects
Focusing on renewables, there have been 119 new projects in the sector totalling $73 billion (€52 billion) in Q3 2010. This compares somewhat unfavourably with the 125 new projects totalling $97 billion (€70 billion) registered in Q2 2010. In the same quarter of the previous year, few projects (110) were entered into, while total investments were higher at $84 billion (€60 billion).
The most significant new projects this quarter are five US based offshore wind farms. The largest developments are the Nantucket Island, Mustang Island and Rio Grande projects totalling $18.5 billion (€13 billion).
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