The European renewables industry is coming to grips with one of its leading markets deciding to leave the EU.
The UK voted yesterday by 52% to 48% in favour of the so-called Brexit option, sparking a process that will eventually lead to the country going it alone.
RenewableUK chief executive Hugh McNeal said the organisation had “a wide range of member companies with differing views of the result” and that it would respect the result.
He added: “Our focus will continue to be on delivering power to the UK at the lowest cost. The future is bright; the European and global opportunities remain immense.”
Ashurt utilities partner David Wadham said: “The outcome raises so many questions for the UK power industry, and in particular the renewables sector, that it is vital that the government takes swift action to ensure there is sufficient certainty to allow power companies to make investment decisions.”
He added: “In particular, developers need clarity on any impact on the next CfD allocation round scheduled for later this year.”
SSE said the result poses no immediate risk, but that might change if the vote “leads to a prolonged period of uncertainty about the legislative or regulatory framework that SSE operates within”.
It added the UK government should be mindful of the importance of harmonisation of the GB energy market with European counterparts.
“The UK government acknowledged . . . in February 2016 that in the event of a vote to leave an agreement on the continued involvement of the UK in the Internal Energy Market would need to be resolved in the context of managing the transition, fixing the terms of exit and fixing a future arrangement,” said SSE.
“It therefore hopes that the UK government and the European institutions will provide clarity on future plans for the UK’s involvement in the IEM,” it added.
Markets reacted unfavourably to the news and the pound tumbled against other major currencies. A number of large European developers and suppliers are closely involved in UK renewables.
Reaction will be reported through the day on reNEWS, check the website for the latest developments.
Image: Amio Cajander
