Renewable energy investments after Brexit

The implications of Brexit for investment in the UK’s renewable energy supply chain are uncertain, as much will depend on the broader terms of departure and the future relationship with the EU, which remain unclear.

This research report considers the extent to which Brexit poses a risk to renewable electricity investment in the UK – and Scotland in particular.

In the medium terms Brexit may affect Scotland’s substantial number of on- and off-shore wind projects in the pipeline. The terms may translate into reduced access to low-cost financing for these projects, the imposition of tariff and non-tariff barriers on low-carbon goods and services, reduced access to a skilled pool of labour, as well as more limited entitlements to European public funding for Research & Development.

At the same time, however, there are positive signs that European utilities remain committed to developing the UK’s domestic supply chain; we consider recent inward investment flows and record low auction prices for delivering offshore wind energy as encouraging signs of industry resilience.