Posted on: 05/07/2016
The UK’s exit from the European Union (EU) poses risks to the affordability of energy, attempts at decarbonisation and security of supply, according to analysts at accountancy firm PwC.
They warned that the weaker pound will drive up the cost of importing fuel, such as gas, and uncertainty caused by Brexit will push up the cost of investment in renewable energy and infrastructure.
The analysts also said that negotiations over interconnectors would also become more difficult when the EU is experiencing energy shortages.
But EU exit could benefit UK renewables sector
In contrast, Jennifer Ballantyne – a partner at international law firm Pinsent Masons – suggested that Brexit could have a positive effect on the renewable energy industry through the removal of EU state aid rules and by making the planning process more straight-forward.
“The clearest example is the designation of environmentally protected areas, some of which are in exactly the sort of places where one would want to build onshore or offshore wind farms,” she said.
“Some in the UK have never been convinced by the science that underpins those designations and concerns have been expressed that designations are politically motivated.”