Uncertainty triggered by the UK’s decision to leave the European Union has made Siemens, one of the biggest offshore wind players, rethink its strategy and put all new wind energy investments in the country on ice, according to The Guardian.
The wind turbine maker is also halting long-term export plans at its UK-based blade factory in Hull, Bloomberg reports.
The factory in Hull will not be immediately affected by the company’s decision, since the order pipeline is for projects in the UK, but potential long-term export contracts are off the table until the implications of the so called Brexit become more clear.
Meanwhile, Siemens advertised further 100 job openings at its Hull wind turbine blade factory, which will bring the number of employees to over 500. The facility is due to open this September.
“The government must now move swiftly to unify and agree the nature of the U.K.’s relationship with the EU and other trading partners, creating clear roadmaps to encourage future investment,” Bloomberg quotes Siemens as stating.
Today, Offshore WIND reported that the cloud of uncertainty created by the Brexit vote could also affect the Moray Firth offshore wind project, developed by EDP, which said it will wait to see what exact impact will Brexit have on the future of the project.
DONG Energy is also among those who said they will wait to see the implications of the vote. “However, we don’t believe that UK energy policy is dependent on EU membership and we are confident that Dong Energy will continue to make an important contribution towards providing UK homes with a low carbon electricity supply in future,” DONG Energy said.
The ongoing uncertainty was addressed by BVG Associates’ Director, Bruce Valpy, a couple of days ago. He said that the implications for the UK as a whole will be known after the exit negations, which could take at least two years and any regulatory impact will depend on the inevitably protracted negotiations. “That uncertainty in itself has real implications for renewable projects in the UK.”
Furthermore, following the UK’s vote to leave the EU, the Renewables Consulting Group (RCG) said: “The coming period will be characterised by political and business uncertainty, both of which could shape the exit process. The composition of the Government itself is in a state of flux following the resignation of David Cameron, the Prime Minister.
“Whilst it will be some time before the full ramifications of Brexit are known, it is essential that those in the renewables sector begin planning for the inevitable change and consider what they can do to shape the future.”
Source: Test from Offshore Wind News