Connecting...

Brexit Results Causes Uncertainty in Britain's Offshore Wind Sector

06 Jul 15:00 by Steve Walia

W1siziisijiwmtyvmdcvmdyvmtqvmdqvmzevnzuvndq1odaxntdfbs5wbmcixsxbinailcj0ahvtyiisijgwmhg0ntajil1d

A planned wind power project located in the Moray Firth is now under threat of delay following the EU referendum result. Following the Brexit decision, Energias de Portugal, the developers, are assessing the project's viability within their business.

The result is a number of worried investors and a concerned local community, who were looking forward to the investment and prospect of sustainable jobs. Other projects are also experiencing similar uncertainty, as clarity around the government's position about subsidies, export duties and exchange rates remains unavailable. With so much uncertainty now in place - from the UK's future position within the EU to the shape of the future government - it is inevitable that companies and investors alike are set to review their investment plans. 

Siemens has also confirmed that it is reviewing its plans to further expand a manufacturing plant located in Hull. Ongoing financial market volatility following the referendum result is also denting business confidence.

A spokesman from Poyry, the energy consultants, said that the firm believed that a two- to three-year hiatus would now be seen in large renewable power projects where financing was being planned from an international panel.

The UK has the biggest domestic market for offshore wind, which is expected to be worth c. £20 billion during the decade from 2010 onward, according to Renewable UK. The vote has certainly made conditions challenging for investors in offshore, as they tend to be based overseas and are affected by forex rates.

The renewable energy sector in the UK will now be awaiting confirmation and clarity on the next steps for Britain's government and European trading position as soon as possible - along with the rest of the country's industry - with bated breath.