More than half of the UK’s energy sector expect the country’s energy security to be undermined following withdrawal from the EU, according to a new survey.
A report into the sector’s perceptions of Brexit’s impact, which was carried out by law firm Shakespeare Martineau says supply security concerns centre on worries about financing the 16 GW of new gas and electricity interconnectors planed between the UK and the rest of the EU.
“Depending on what the post-Brexit future looks like, it could become more difficult to access power from Continental Europe,” the report said.
Nearly three quarters (72 per cent) of energy organisations surveyed said they believe investment in UK-based renewable energy projects and other low-carbon technologies will decrease after Brexit with only 9 per cent expecting it to increase.
A bigger proportion (76 per cent) said they expect investment in UK-based clean technology research and development initiatives would also suffer following the UK’s withdrawal from the European Union.
Overall the research shows UK-based energy organisations are pessimistic about Brexit with 74 per cent thinking it will have a negative impact on their organisations, compared with 19 per cent of respondents from the non-UK panel. Only 7 per cent of UK organisations reckon Brexit will have a positive effect.
The report said: “UK-based energy organisations believe they have more to lose from Brexit than their non-UK counterparts.
“Despite potentially freeing them from EU regulatory controls and reducing red tape, UK-based organisations are concerned that Brexit will threaten EU and private sector capital funding for existing and future energy projects.
“Without this funding, existing projects in the pipeline could be delayed, or even abandoned, and it would become even more difficult for the UK to achieve its domestic (Climate Change Act 2008) and international (Paris Agreement) commitments.”
One in four of EU respondents to the survey thought the risk of security of supply issues would increase in these territories too.
And two-fifths (41 per cent) of non- UK energy organisations believe Brexit is unlikely to affect them significantly.