‘For the exact same project design in February, it would’ve been £2m cheaper’ says Bouygues. Image: Getty.
“For one project, if it was the exact same scheme, supplier prices and everything, had we signed a deal in February 2022, just on the exchange rate alone, it would’ve been £2 million cheaper,” said Patrick Doyle, head of energy business development at Bouygues.
This statistic showcases the startling rise in the cost of project development in the UK, amid surging inflation and a weak pound. Because of this, radical price hikes have occurred across the industry with a major impact on supply chains.
There is a major opportunity to increase solar’s development amid the energy crisis, but the price to develop could present a stumbing block to these projects.
To counteract this, Bouygues has optimised the designed of solar projects in order to achieve a levelised the cost of electricity to prevent these startling increases. This allows contractors to know exactly what they will be paying, Doyle said, speaking the the UK Solar Summit in London this week.
“This increase in just 6 months is absolutely crazy,” Doyle said. But despite this, demand for the technology is high with investors clamoring to be part of the sector, due to its key role in net zero, the still relatively low cost of the technology, and its ability to boost domestic energy security amid the current crisis.
“Solar is a brilliant, non-brainer technology at the moment for the transition to net zero emissions,” he added.