Vote paid too little attention to energy
ACCESS to clean and affordable energy is a vital component of any modern society.
But little attention was given to the implications of Brexit for energy during the EU referendum.
The UK, Scotland and the EU-27 face important choices that could determine the extent of short to medium-term energy disruption from Brexit and the degree to which future co-operation in this field might be possible.
Article 50 specifies that Brexit negotiations must be completed by April 2019, two years after the UK’s formal notification to leave.
In addition, the European Commission has said three issues (the financial or ‘divorce’ settlement; the fate of EU nationals in the UK and visaversa; and the border between the Republic of Ireland and Northern Ireland) must be settled before formal discussions can begin.
What the agreement, including on energy, will look like is yet unclear.
The UK Government has said Britain will be leaving the single market, but a 2017 white paper stated that the UK was “considering all options” on the energy relationship with the EU.
Maintaining reliable and affordable emergy, and in particular electricity supplies, is essential.
The UK’s decarbonisation will also need changes to the energy system in the EU, which will require significant and harmonised policy intervention across the whole of Europe.
The UK is linked to both the Irish and continental electricity markets through 3 GW of electricity interconnection. The UK’s net electricity imports are expected to rise to 80 TWh in the mid-2020s.
This includes a proposal for an electricity cable between Scotland and Norway. Britain had also planned to further harmonise its operating regimes with those of other member states to enable electricity cables or interconnectors between countries to operate with more flexibility. Increased interconnection will also be necessary.
Energy access and trade is of course vital for Scotland’s fossil fuel industry as it receives gas from Norway – both directly and indirectly – via three pipelines.
The midstream and downstream sectors – ie processing, distribution and marketing – could also be affected. At the heart of a pragmatic energy Brexit deal lies the need to maintain the Single Electricity Market which operates across Ireland.
Common energy issues between the UK and EU-27 include the import of liquified natural gas to the UK, bound for the continent. But other countries will also have to step up their support for climatechange policy post-Brexit. Consumers and policymakers will have to be told of the mutual benefits of a strong energy relationship as early as possible, as well as think of new ways to co-operate in a postBrexit world.