The Scottish Energy Association® (SEA) – the only industry body which represents, and includes, member companies from all main gas, oil and renewable energy sectors in Scotland – has announced that it is ready to’ facilitate dialogue between the energy industry and Government’ as we implement the systems to remove the UK from the European Union.
Hector Grant, Chief Executive, Scottish Energy Association® said: “This decision by voters, in what was a very high turnout, gives the industry a major challenge, one that will be new to all of us but one that needs to have stability as its key aim.
“It will create uncertainty, as it is new territory, which will have to be addressed, and it is important for the whole country to work together to achieve the required exit from Europe.
“However we still need investment to meet UK and Scottish CO2 targets and to maintain security of supply, so we will need early clarity on policy.
“The Scottish Energy Association stands ready to assist in the debate and work with the Scottish and UK Governments to achieve a successful transition for the energy industry and one that gives more stability and certainty for future investment and growth of a low carbon economy.
“Many of our members will continue to work in Europe as successful international companies and we must ensure that the UK continues to benefit from their widespread businesses.
“The Scottish Energy Association is cognisant of the decision made and positive that now the country has decided what it wants to do we should move forward with a degree of certainty that will allow the energy industry to better plan for major investments.
“These are required to meet the CO2 targets in the Climate Change Acts for the UK as a whole plus the more ambitions targets in Scotland along with the new global deal to tackle climate change which came out of COP21 in Paris in December 2015.
“It may take many years of negotiation and hard work however we will continue to assist all of our members in whatever way we can, to ensure a satisfactory conclusion.
“The Scottish Energy Association is the membership association for the energy industry supporting organisations working in Scotland, across the UK and internationally.
“The interests of our members span the entire supply chain of existing and emerging technologies and services for the generation and transmission of energy from renewable, thermal and nuclear forms of energy.”
See also: COMMENT: Time for a unified single Scottish energy trade association
Tony Ward, Head of Power & Utilities at management consultancy EY, added: “Being an island with limited interconnection to the continent, the UK has out of necessity had to meet its energy needs largely from its own UK-based resources and assets. Demand for these services is not likely to change materially, despite the vote to leave the EU, and the UK-based industry will continue to meet that demand.
“However, the UK has become increasingly dependent on the import of fuel and technology to construct and operate assets. If sterling declines in the currency markets, the price of these imported resources may rise, increasing the costs to end users of energy in particular.
“The vote to leave the EU will also likely make its impact felt by creating an immediate heightened level of policy and regulatory uncertainty.
“Whatever Government emerges in the aftermath of the leave vote it will need to clarify its policies with respect to climate change, renewable energy, technology preferences, State Aid and many other matters of direct relevance to the utility industry, and to its investors.”