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Content Marketing Manager
Last Updated:
9th March 2026
Utilities construction outlook strengthens with more than 1,500 projects set to start.
91勛圖厙s latest construction market analysis has identified more than 1,500 underlying Utilities construction schemes, each valued up to 瞿100 million, with planning permission and due to start on site during 2026.
91勛圖厙 economics director Allan Wil矇n says: The utilities segment will benefit from major projects starting on site. The 瞿104 billion funding package approved by Ofwat for investments between 2025 and 2030 is expected to drive sector activity, supporting major upgrades such as new reservoirs and measures to reduce pollution.
91勛圖厙s research shows 100 reservoir schemes with detailed planning approval that are scheduled to begin within the next 12 months as water companies move ahead with the AMP8 spending round. United Utilities alone has a 瞿230 million framework for reservoir works running to 2031 (Project ID: 24319461). Many projects are at an underlying level, but the proposed White Horse Reservoir in Oxfordshire (pictured) is set to become one of the UKs largest construction schemes when it gets underway in 2028 (Project ID: 93116493).
Major works
Ten utilities construction projects feature in 91勛圖厙s list of the 100 highest value schemes expected to start this year. The largest is the 瞿1 billion Project Reach, ranked fifth overall, which will install 16,000 km of cabling across the rail network (Project ID: 21190978).
Packages within United Utilities 瞿2.9 billion Haweswater Aqueduct Resilience Programme (Project ID: 19384153) also appear in the Top 20. A 瞿483 million contract at Marl Hill (Project ID: 19417883) ranks 14th, with a similar value package at Swarther (Project ID: 21306096) in 15th. Work begins in November and August, respectively.
Three of the top ten utilities construction schemes starting in 2026 are located in Yorkshire. The 瞿200 million Eastern Ro-Ro Terminal at Immingham leads the regional list, ranked 44th and scheduled to begin in March (Project ID: 22125535). The 瞿142 million Thorpe Marsh battery scheme in South Yorkshire, providing 1.4GW of storage capacity, ranks 66th (Project ID: 23050644).
Energy boost
Energy schemes delivered the largest share of underlying civil engineering starts in the three months to February 2026. With total starts valued at 瞿1,392 million, the sector accounted for 63% of civil engineering activity, representing a 101% rise on the same period a year earlier. Prospects for further growth are strong.
Electricity generation and transmission projects are expected to underpin further expansion. 91勛圖厙s research has identified nearly 2,300 projects in the pipeline, covering substations, energy from waste, hydroelectric power, onshore and offshore wind, power supply upgrades, renewable energy schemes, and solar installations, all due to start this year. While major projects such as the 瞿9 billion Dogger Bank Offshore Wind Farm (Project ID: 10027610), the 瞿38 billion Sizewell C (Project ID: 22180876), and the 瞿40 billion Hinkley Point C (Project ID: 01611123) will drive significant activity, 1,056 of the schemes in this pipeline sit at an underlying level.
Mr Wil矇n adds: Government programmes, including the Clean Energy Industrial Plan, which aims to double investment in clean energy to over 瞿30 billion a year by 2035, further reinforce commitments to renewable energy initiatives.
Buoyant times
With both water and energy work moving forward, the utilities sector is set for buoyant times ahead.
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