The Effects of Brexit on the UK Renewable Energy Sector

This report analyzes the multifaceted impact of Brexit on the UK's renewable energy sector, examining both positive and negative consequences. The study investigates how political instability and changes in government policies, including subsidy rates and taxation, have affected the industry. It explores the decline in oil trade and the potential opportunities and uncertainties arising from Brexit, particularly concerning renewable energy targets and investment. The report assesses the economic impact of Brexit on investment decisions within the renewable energy sector, including the imposition of tariffs and non-tariff barriers, and the challenges in accessing skilled workforce. It further discusses the influence of EU state aid guidelines, the shift towards alternative energy solutions, and the government's ability to provide subsidies. The analysis includes a reflective statement, examining the author's learning, feelings, evaluation, and analysis of Brexit's effects, concluding that the economic impact of Brexit has had a significant influence on the renewable energy sector.

Academic skills
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................................................................................................................4
TASK 1.................................................................................................................................................................................................................................................4
TASK 3.................................................................................................................................................................................................................................................4
TASK 5.................................................................................................................................................................................................................................................6
CONCLUSION....................................................................................................................................................................................................................................7
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INTRODUCTION
Brexit has affected the various countries as well as industries both in positively and negatively. Political instability in the nations have direct impact on
the trade between two nations. Brexit has direct as well as significant effect on the profitability of oil and gas companies in EU and UK. After Brexit there has
been great decline in oil trade. In addition to this, Renewable energy has been an area of strength for the United Kingdom in recent years, but decline in subsidy
rates and changes in taxation policy by government have negative effect on the growth of an industry. Changes in regulations is creating major threat for
renewable energy sector. Brexit vote might bring potential opportunities as well as freedom to support renewables, but at the same time there are high chances
of uncertainty.
Present report has focus on analysing the impact of Brexit on the United Kingdom prospectus for renewable energy. Study will also include some data
or evidence to show the way UK decision to leave EU has effected the renewable energy sector. It also emphasizes on highlighting the opportunities as well as
threats which Brexit might bring for renewable sector.
TASK 1
Text A ↓
All students should use the text shown in the
box (also available on GSM Learn).
Text B ↓
This is a text of your choice.
Text C ↓
This is a text of your choice.
Citation/reference Greater London Authority
(2018). Preparing for Brexit. [online]
Cambridge, UK: Cambridge
Econometrics. [online] Available at:
https://www.london.gov.uk/sites/default/f
iles/preparing_for_brexit_final_report.pdf
[Accessed 3 Oct. 2018].
Scott.l (2017).The
Political Economy of
Brexit and the UK’s
National Business Model.
[Online]. Available
through :<
http://speri.dept.shef.ac.u
k/wp-content/uploads/20
The government's
negotiating objectives
for exiting the EU: PM
speech.[Online].
Available through:<
https://www.gov.uk/gov
ernment/speeches/the-
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17/05/SPERI-Paper-41-
The-Political-Economy-
of-Brexit-and-the-UK-s-
National-Business-
Model.pdf >
governments-
negotiating-objectives-
for-exiting-the-eu-pm-
speech >.
Resource type
(e.g. book, journal et.c.)
ONLINE Book BOOK Journal
Authority
(Who is the author? Is
he/she qualified to
speak on this topic?)
Greater London
authority
Scott Lavery
Currency
(Is the text up-to-
date?)
2018 2017 2017
Content
(Is the content relevant
to your topic?)
Yes Yes yes
Accuracy
(Are any facts & ideas
supported with
evidence?)
Yes, it is published by
Greater London
authority
Yes Yes , as this journal
shows the speech given
by prime minister.
Audience
(Who is this text
written for?)
Public Public and industries Public and industries
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Further notes/
comments
TASK 3
Part 1 : Introduction :
Political changes in the country has changes the UK prospectus for renewable energy sector. While decarbonisation as well as renewable targets are
unlikely to be highly affected due change in climate Act, and the fact that EU 2030 renewable energy targets are not legally binding for individual member
states. EU state aid guidelines currently constrain the UK government in the design of its support schemes for electricity generators. Exit from the EU may open
up the UK government’s options in creating interventions targeted at specific technologies. Brexit will have direct as well as significant effect on the
government decision related to investment on renewable sector.
Part 2: Discussion
Based on the specific exit scenario, the main change is likely to be to in the manner by which the decarbonisation plan is implemented, with a potential
shift from the development of renewables to alternative and possibly cheaper solutions. For instance, more rapid switching from coal to gas generation and new
nuclear. In addition to this, the Brexit has increased the threat to renewable electricity investment in the United Kingdom. The possible effect of Brexit
Includes imposition of tariff as well as non-tariff barriers on imports and exports of low carbon products. Due to Brexit it has become challenging for
companies in renewable sector to access skilled as well as talented workforce, this factor has direct as well as significant effect on the productivity and
profitability of organisations. Due to changes in policies after Brexit, companies in renewable sector are limited entitled to public funding which are utilised by
them for research and development.
At the same time, however, there are positive effect of Brexit is that European utilities remain committed to developing the United Kingdom domestic
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supply chain. It can be considered to be as current inward investment flows as well as record low auction prices for delivering offshore wind energy as inspiring
symbols of industry elasticity. In addition to this, the result of Brexit, the removal of EU renewable energy targets, under the Renewable Energy Directive, have
give rise to greater uncertainty for the renewables sector. Now, government in United Kingdom has its own national targets relating to decreasing of emissions,
but the EU targets, requiring a specific percentage of electricity to come from renewables, have played a vital role in shaping United Kingdom energy policy. In
addition to this, goals set by government in EU for diverting waste from landfill, under the Landfill Directive, haw be important factor which is influencing the
development of energy from waste. After the Brexit, the government in UK will be free in context of providing subsidies to technologies of their choice. The
economic uncertainty created by Brexit has given rise to the deferral of investments in UK renewable industry. This factor also has direct as well as significant
influence on investor decision related to investment in renewable sector.
Part 3 : Conclusion
UK government decision to leave Eu have significant as well as long lasting effect on renewable sector. In addition to this, Investment can be thought
of as being impacted by Brexit in various ways these are driven by trade-related output effects, short-term uncertainty over eventual outcome and risk to foreign
direct investment
TASK 5 REFLECTIVE STATEMENT
Description:
I have learned about the way UK government decision to leave EU have affected the prospectus of investors related to the investment on renewable
sector in United Kingdom. Brexit has led to the increase in cost of importing solar panel. I have noticed that Brexit has major economic impact. It has highly
affected the profitability of companies operating in renewable energy sector. I have Been that due to Brexit many of organisation in renewable energy sector is
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facing funding issues, as before Brexit these firm were provided with funds for research and development activities. I have also noticed that changes in taxation
policy by government have adverse effect on the profitability of firm operating in renewable energy industry.
Feelings:
When event was happening, I was wondering that about the way Brexit will have influence on the investors decisions related to investing in renewable
sector. I have concern about the issue considering the economic impact if Brexit. I was waiting nervously to see the way nation’s withdrawal from the European
Union, known as Brexit, will affect companies operating business in renewable sector. I also had a thought that whether Britain meets its commitments to cut
emissions of planet-warming greenhouse gases.
Evaluation:
I have noticed that when the companies in renewable energy sector was struggling for finding the sources of funding, during that time government in
nation has reduced various subsidies which has assisted new technologies in becoming more commercially viable. I have noticed that , after Brexit also, EU
government was committed to support renewable sector. After considering all the facts I don’t see the environment side and renewable energy being
predominantly high on the administration’s plan.
Analysis
I have analysed that Brexit has lowers the confidence level of investors in context of making investment in renewable sector in United Kingdom.
I have also examined that government in UK has decided to set their own goals as well as policies for carbon cutting target. I perceive that the legal authority in
United Kingdom should not do so. I think changing setting new targets as well as changing the policies strategy has been adopted by government in order to
make admirative procedure easier. I also perceive that Brexit may bring benefits for clean energy.
CONCLUSION
It has been concluded from the report that Brexit have both positive as well as negative effect on the UK prospector to renewable sector. It has also been
concluded from the assignment that Economic impact of Brexit have negative influence on investors decision related to making investment in renewable
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industry. Project has also concluded that changes in political conditions as well as amendments in taxation policy have adverse effect on the profitability of
renewable industry. It has been concluded from the study that due to Brexit companies in renewable sector is facing funding issues.
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