EPC Firms Can Expect More Competition in Renewables

摘要

Anew report suggests contractors that provide engineering, procurement and construction (EPC) services in the renewable sector will need to adapt to a more competitive market. While the market is expected to double by 2021, the scarcity of large utility-scale projects will potentially require the largest EPC firms to change their business models, concludes the report, released Oct. 14 from Bloomberg New Energy Finance (BNEF) and Cohn Reznick, a tax and accounting firm with a renewable energy practice. Michael De Capua, head of analysis in the Americas for BNEF, says, "In an en- vironment in which the easy projects have been done and [tax] incentives are expiring, differentiation and know-how matter more than ever." For example, some EPC firms that have historically focused on wind are starting to broaden their attention to solar, which can offer a more stable policy environment, the report concludes. Firms that can focus on smaller utility-scale solar projects in states with robust incentives may find higher margins than might be gained from large-scale wind.