Brexit could have a limited effect on energy markets in both the United Kingdom and the European Union, according to a new study that is optimistic about the future of energy policy, euractiv.com reports. But the Court of Auditors has warned that experimental energy research could suffer.
A new study published on Wednesday (22 November) by the University of Cambridge and the Centre on Regulation in Europe has assessed what impact the UK’s exit from the EU will have on energy policy on both sides of the Channel.
By focusing on the UK’s energy interconnections with Ireland, France, the Netherlands and Belgium, the study authors were able to predict what the state-of-play could be in 2025. Although future plans for integration could be limited by Brexit, the interconnector capacity already under construction “dwarfs” this potential, they claim.
Furthermore, proposed projects by both parties that would bypass each other, including further energy connectors between Norway and the UK, as well as an electricity link between France and Ireland, are “expensive and mutually undesirable alternatives to the current arrangements”.
British participation in the EU’s Emissions Trading System (ETS) is also valuable according to the report, which points out that the UK is “a substantial net purchaser of [carbon] permits and hence is buying cheap abatement from overseas via its membership”.
In general, the study suggests that the UK and the EU “benefit substantially” from their current participation in common electricity, gas and carbon market arrangements. It also concluded that energy is actually a peripheral issue compared to other sectors under scrutiny in the withdrawal process.