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Willmott Dixon is to launch an energy services division in the new year providing energy efficiency measures, despite other major contractors scaling back operations in the sector.

The new firm will employ 25 people and aims to turn over 拢100m a year within four years.

The new division is Willmott Dixon鈥檚 attempt to take advantage of the opportunities presented by the government鈥檚 roll-out of its flagship Green Deal in October next year, which is expected to generate 拢80bn of investment.

The firm will deliver advice to the domestic and commercial sectors on energy reduction retrofits, specifying best use of energy reduction technology and creating a defined process to measure reductions.

The announcement comes just two weeks after Carillion announced its energy services division had put 4,500 staff on notice because of the government鈥檚 plan to halve the feed-in tariff for solar electricity. Breyer Group, another major solar panel installer, also said that it expected to lose up to 15% of its turnover this year because of the government鈥檚 plans.

But Rob Lambe, who will head Willmott Dixon鈥檚 energy services firm, said: 鈥淲e see renewable energy and micro generation systems as an important part of the solution [to fuel poverty] and believe photovoltaics still provides a viable source of low cost energy despite the recent announcement to reduce the feed-in tariff.鈥�

Chris Durkin, chief executive of Willmott Dixon Support Services, added: 鈥淭he launch of this company is a culmination of a lot of planning and measured assessment of the energy market over the coming years.鈥�

Lambe will continue in his his role as managing director of Willmott Dixon Re-thinking, the firm鈥檚 internal consultancy service, and take charge of the new division. He will be joined by David Adams, director of Re-thinking, who will take the role of director of energy.