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Ongoing Uncertainty Following the EU Referendum Result

  • Publish Date: Posted about 8 years ago

Britain's renewable energy industries have been making excellent progress in recent years, but the challenge of moving to a clean and sustainable energy model for the country has now become notably more challenging amid the economic and political uncertainty that follows the so-called Brexit vote.

Experts have already warned consumers and the industry alike that energy bills are likely to rise and that projects are likely to be paused or simply cancelled, particularly those which rely on foreign investment. More optimistic analysts believe that the global push towards green energy, combined with the UK government's continued commitment to achieving ambitious climate change targets, will help to ensure that the transition to a clean power model continues to progress.

However, the next PM and her or his Cabinet team will be vital influencers either way. If the eventual EU deal results in close working practices and free trade within the internal European energy market - such as with Norway's existing arrangement - then the knock-on effect of Brexit in the long term may be minimised for the UK. But a more significant departure from the biggest single market in the world would certainly leave Britain on the sidelines.

The National Infrastructure Commission has already warned that the UK must invest around £20 billion annually from now to 2020, with its ageing and dirty fossil fuel power plants now being decommissioned. This represents a 60pc national spend on infrastructure. However, the financial risks are spiking with market uncertainty, and the political risks also couldn't be higher for developers.

The National Grid has also warned the government that bills will increase and energy security of supply will diminish if Britain fails to remain part of the IEM. The pressure is now on the government to secure Britain's continued green energy growth.