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This sector is currently experiencing rapid growth, largely due to technological advancement and government policy.
The electrical sector includes large electricity generating companies such as National Grid—which generate, transmit and distribute electricity nationally—as well as smaller scale power stations that are connected to regional distribution networks.
The number of businesses operating in electric power generation, transmission and distribution has increased 557% from 1,090 to 5,555 since 2010 - a growth of 410% in seven years.
This rapid growth could be down to support from technological innovation and government policy. However, the growth could also be attributed to the “micro generation” of electricity by home and business owners putting solar panels and wind turbines on their premises or land, of which there are now more than a million in the UK.
One of the main reasons for this is because of the government's Feed-in-Tariff (FiT) and Renewable Obligation (RO) schemes which promote renewable energy.
These schemes have allowed property owners to generate their own low-carbon energy, safe in the knowledge that they’ll receive a fixed tariff for an agreed period following installation, while also being able to sell any electricity they don’t use back to their supplier.
The popularity of these schemes has resulted in an increasing number of companies being established to create, supply and install the renewable technology needed to meet demand.
Looking ahead, a major growth area is expected to be the battery-storage market which will allow home and business owners to store the surplus electricity they generate for the first time.
For further information on the sourced references for the Business Trends data, outside of the Business Population Estimates 2017 and Nomis official labour market statistics 2010 and 2017, please download the information here (PDF, 240MB)