Unless you have been living under a rock, you would have heard that the UK voted to leave the European Union in a historic referendum. The result of the referendum was quickly followed by the resignation of Prime Minister David Cameron who said he did not want to be the leader that would take the UK down this path.
Throughout the referendum campaign trail we had heard a lot about the negative impacts Brexit would have on the UK economy and more specifically the UK’s energy industry. However, now the UK will definitely be leaving the EU, industry expects are reacting to the news.
Energy giant SSE stated that it was time for the UK to be mindful and patient with the overall aim of obtaining clean, secure and affordable energy. SSE believe that a deal must be made with the EU to secure the UK’s energy in the future.
Other industry experts are not as optimistic, with a senior editor at the Economist stating the result had put a lot of uncertainty over the UK’s energy industry. Others state that we have always been an island and that our energy system is used to being isolated from the continent. Now the UK is free from EU bureaucracy, making energy deals with countries such as China will be a lot easier which could increase the UK’s attractiveness for investment.
Prior to the referendum people had questioned what would happen to policy’s such as carbon emission targets. The UK is a world leader at reducing carbon emissions and it is believed that the UK will simply set their own targets.
Whatever happens over the coming months it will require calm and strong leadership so reassure the economy and energy industry. All experts within the industry can agree on one thing, there will be short term pain but the possibility of major opportunity’s in the medium to long term, if managed correctly.