Renewables Consulting Group launches client study on pros and cons of British Independence from EU


EU flagThe Renewables Consulting Group (RCG) has launched a multi-client study to analyse the possible implications of the UK voting for British Independence from the EU on the UK’s future offshore renewables and environmental legislation.

The report- entitled “Judgement Day” – will be delivered by the end of April, and presents a balanced review of the current state of play, the successes and failures of EU energy policy in relation to offshore renewables, as well on the pros and cons of leaving or staying

Whilst estimates suggest UK level regulation is 2.5 times more cost effective than EU regulation, British Independence is expected to leave the UK with little influence over EU energy regulation – but still be largely regulated by it.

Yet, the evidence predicts regulatory divergence will grow over time leaving the offshore wind supply chain less competitive against their European counterparts.

Dr. Steve Freeman, Head of the Public Sector practice at RCG and the principal investigator for the report commented: Today, the offshore wind industry is estimated to contribute over £1 billion to the UK economy – a figure predicted to grow significantly by 2020.

“Our research shows British Independence is likely to put UK’s 2020 and 2030 renewables targets under threat, and with it further uncertainty on the future sustainability of the industry.

 “Whilst the full impact of a UK vote to separate from the EU is difficult to predict, it is well understood that energy and the environment are key pillars of EU legislation, and have, over time, intricately bolstered every facet of UK energy law and policy.”

With no precedent set for a Member State to leave the EU, failure to understand the implications of the UK separating from the EU on the offshore wind industry and nascent marine renewables sector (wave and tidal power) could be a costly one.

Freeman added: “If Britain votes ‘Yes’ to Independence, Government needs to maintain close co-operation and policy alignment with the EU to leverage its competitive edge and retain its current influence as a market leader in marine renewables, and energy policy innovator.

“The alternatives are exploitation of its new institutional freedom to reverse key energy and environmental laws and policies, which has far reaching implications to all actors in the renewables sector.

“Euro-sceptics argue that the EU sets over-ambitious environmental and climate targets with inflexible energy policies that burden UK industries. Yet, despite the rhetoric, the evidence to remain in the EU shows that energy policy, climate and environmental regulation remain fundamental drivers to future growth, and without them the renewables industry will be at risk from regulatory divergence.”


Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed