Brexit and Article 50 of the Treaty of the European Union: Implications for UK Energy Policy and Security

Ifelebuegu, Augustine O.; Aidelojie, Kenneth; Acquah-Andoh, Elijah

doi:10.3390/en10122143

Cited by 8 publications

(6 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This has a focus on boosting manufacturing and jobs in the Midlands and North of England, where extra battery and renewables related manufacturing plants would be located. Ifelebuegu et al (2017) suggest that the winding up of the Department of Energy and Climate Change (DECC) and its merger with the Department of Business, Innovation and Skills (BIS) to become the Department of Business, Energy and Industrial Strategy (BEIS) in July 2016 was a consequence of Brexit. This happened immediately following Teresa May becoming Prime Minister and is in line with the reactivation of industrial strategy.…”

Section: The Wider Effects Of Brexit and Questions Raisedmentioning

confidence: 99%

The further economic consequences of Brexit: energy

Pollitt

2022

Oxford Review of Economic Policy

View full text Add to dashboard Cite

The UK left the European single market in energy on 31 December 2020, having been a leading light in its promotion. It entered into a new energy relationship with the EU-27 as outlined in the EU–UK Trade and Cooperation Agreement (TCA) on 1 January 2021. This paper discusses what has happened to the UK energy sector since the Brexit referendum of June 2016. Since our previous paper on this topic in 2017, there has been a significant clarification in the impact of Brexit on the energy sector in the UK. We outline what the TCA says about energy. We then discuss the current and potential future effects of Brexit on the UK electricity and gas systems in turn. We observe that the likely economic welfare impacts on electricity are larger than the impacts on gas, but the overall microeconomic impact appears likely to be modest (but negative). We offer a number of concluding observations.

show abstract

Section: The Wider Effects Of Brexit and Questions Raisedmentioning

confidence: 99%

The further economic consequences of Brexit: energy

Pollitt

2022

Oxford Review of Economic Policy

View full text Add to dashboard Cite

show abstract

“…The exit of a member state is unprecedented in the history of the EU and therefore Brexit came with significant uncertainties causing an initial financial maelstrom that left the Pound Sterling loosing value against major global currencies. Also, the uncertainties caused a slowdown of the economic growth and productivity of the UK [18]. The exit negotiation is currently ongoing, and it remains uncertain whether or not a deal will be reached by March 2019.…”

Section: Brexit: Background and Definitionsmentioning

confidence: 99%

“…Nonetheless, the crucial role played by the interconnector in providing 'balancing gas' to augment the UK's more reliable supplies from Norway, as well as offering UK gas companies arbitrage opportunities, may be lost should the UK opt out of the IEM. Yet, the UK still has the choice to negotiate bilateral trade with the EU under one of three options suggested by Ifelebuegu et al [18]-the European Economic Area trade rules, Comprehensive Economic and Trade Agreement (CETA) or the EU-Swiss Model. Furthermore, the UK has the infrastructural readiness to increase LNG imports as a short-term energy source to replace most of the gas from EU interconnectors.…”

Section: The Iem Natural Gas Trade and Uk Energy Supply And Prices Pmentioning

confidence: 99%

“…The UK could join the European Free Trade Area (EFTA) and through its membership access the single energy markets should it wish to, in the way Norway has stayed a member of the single market, but not the EU. Norway, through its membership of the NordPool and EFTA has full access to the EU electricity markets with all associated benefits [18,84].…”

Section: No Name Capacity Per Year Percentmentioning

confidence: 99%

See 1 more Smart Citation

Brexit and UK Energy Security: Perspectives from Unconventional Gas Investment and the Effects of Shale Gas on UK Energy Prices

2019

Self Cite

View full text Add to dashboard Cite

Many aspects of the present and future effects on the UK economy, industry, and households, of Brexit have been researched. One thing which appears certain about Brexit is the shadow of uncertainty it casts on the future of business in the UK and its telling effects on the UK economy. It is believed that Brexit has negatively affected the level of investments in the UK, including investments in energy and crucially the upstream oil and gas, with the UK North Sea being starved of investments since 2014, leading already to increased energy bills. The UK is a net importer of natural gas—a major source of its energy, with some dependence on supplies from interconnectors from Europe. At the same time, UK energy companies participate in the common energy market which enables them to undertake arbitrage trading under the common market rules. However, both of these benefits could be lost under a Brexit scenario where the UK and EU come to a no-deal or hard border arrangement. Meanwhile, domestic production of energy in the UK has declined for nearly two decades now and import bills for natural gas are growing—they were £14.2 billion in 2017; £11.7 billion in 2016 and £13.4 billion in 2015—with Government projections indicating an upward trajectory for natural gas imports. It is however believed that the UK has great potential to exploit shale gas to her advantage in order to reduce her reliance on foreign energy which is: (1) less predictable in terms of supply and price affordability and (2) dependent on exchange rates—a primary means through which energy prices increased in 2016/17 post-Brexit referendum vote. The current study extends discussions on shale gas to cover a review of the potential of natural gas from shale formations to cushion UK households against further erratic gas prices due to Brexit and also assesses the potential effects Brexit may have had on the level of investments in shale gas, in order to suggest policy options for government consideration. Contrary to popular studies, we find evidence to suggest that shale gas has the potential to reduce energy prices for UK businesses and households at commercial extractions, under both hard and soft Brexit scenarios, but with more benefits under hard Brexit. Importantly, we find that from 2008 to 2017, average UK net export of natural gas was 5,191 GWh per year to the EU. We also find and argue that Brexit may have starved the nascent fracking industry of investments in a similar way it did to investments in conventional oil and gas and could have increased investor risk premium for shale gas development, the ultimate effect of which was a categorisation of fracking (company stock) as riskier asset for investors on the London Stock Exchange. We recommend that shale gas development be expedited to maximise its benefits to UK energy consumers post-Brexit or economic benefits from the resource could be diminished by rising operator costs due to delays and effects of the public’s perceived negative opinion of the method of extraction.

show abstract

“…Analyzing the impact of reduced expansion of interconnector capacity between the EU and GB on the joint Irish electricity system is beyond the scope of this paper) electricity sector, as it is a system that has experienced increasing integration with other electricity systems in the EU. Indeed, there has been attention in the literature on the implications of reduced integration for UK energy policy and security [6,7]: This integration has come e.g., in the form of interconnectors linking GB's electricity grid with those of neighboring EU countries, enabling the trading of electricity. The European Commission has set a target for net transfer capacities to equal 10% of all installed capacity by 2020 and 15% by 2030 [8], which means that the trade of electricity through interconnectors will form an important component in the ongoing transformation of the British and other EU member states' power systems Saarikoski et al [25] and Browne and Ryan [26] compared CBA (Cost-Benefit Analysis) and MCDA approaches.…”

Section: Introductionmentioning

confidence: 99%

Analyzing Brexit: Implications for the Electricity System of Great Britain

et al. 2019

View full text Add to dashboard Cite

The UK’s exit from the European Union (EU) has potential ramifications for the country’s electricity sector, given its increasing interlinkage with other EU electricity systems. Brexit could hamper the development toward higher market integration and the realization of new interconnector projects. Moreover, a fall in the value of the Pound, resulting from Brexit in the medium term, could also affect the electricity trading structure. Combining a European electricity market model and a multi-criteria decision analysis tool, this study assesses the implications of Brexit for the electricity market of Great Britain (hereafter GB) for 2030, from the perspective of (i) political decision makers, (ii) electricity consumers, and (iii) producers. Results indicate that the implications of Brexit depend on the future development of the GB electricity system and on the objectives of the respective stakeholders. Possible opportunities brought by Brexit under a low-carbon trajectory contrast with greater challenges and tradeoffs between stakeholders under alternative power system development paths. Despite increased British autonomy in energy and climate matters, there remains interdependency between British and EU energy policy.

show abstract

Brexit and Article 50 of the Treaty of the European Union: Implications for UK Energy Policy and Security

Cited by 8 publications

References 32 publications

The further economic consequences of Brexit: energy

The further economic consequences of Brexit: energy

Brexit and UK Energy Security: Perspectives from Unconventional Gas Investment and the Effects of Shale Gas on UK Energy Prices

Analyzing Brexit: Implications for the Electricity System of Great Britain

Contact Info

Product

Resources

About