INTRODUCTION
Brexit has affected the various countries as well as industries both in positively and negatively. Political instability in the nations have direct impact on the trade between two nations. Brexit has direct as well as significant effect on the profitability of oil and gas companies in EU and UK. After Brexit there has been great decline in oil trade. In addition to this, Renewable energy has been an area of strength for the United Kingdom in recent years, but decline in subsidy rates and changes in taxation policy by government have negative effect on the growth of an industry. Changes in regulations is creating major threat for renewable energy sector. Brexit vote might bring potential opportunities as well as freedom to support renewables, but at the same time there are high chances of uncertainty.
The present report has focused on analyzing the impact of Brexit on the United Kingdom prospectus for renewable energy. The study will also include some data or evidence to show the way UK's decision to leave the EU has affected the renewable energy sector. It also emphasizes highlighting the opportunities as well as threats that Brexit might bring for the renewable sector.
TASK 1
Political changes in the country has changes the UK prospectus for the renewable energy sector. While decarbonization, as well as renewable targets, are unlikely to be highly affected due change in climate Act, and the fact that EU 2030 renewable energy targets are not legally binding for individual member states. EU state aid guidelines currently constrain the UK government in the design of its support schemes for electricity generators. Exit from the EU may open up the UK government’s options in creating interventions targeted at specific technologies. Brexit will have direct as well as significant effect on the government decision related to investment on renewable sector.
Part 2: Discussion
Based on the specific exit scenario, the main change is likely to be to in the manner by which the decarbonisation plan is implemented, with a potential shift from the development of renewables to alternative and possibly cheaper solutions. For instance, more rapid switching from coal to gas generation and new nuclear. In addition to this, the Brexit has increased the threat to renewable electricity investment in the United Kingdom. The possible effect of Brexit
Includes imposition of tariff as well as non-tariff barriers on imports and exports of low carbon products. Due to Brexit it has become challenging for companies in renewable sector to access skilled as well as talented workforce, this factor has direct as well as significant effect on the productivity and profitability of organisations. Due to changes in policies after Brexit, companies in renewable sector are limited entitled to public funding which are utilised by them for research and development. Get the best Online Programming Assignment Help at pocket-friendly prices.
At the same time, however, there are positive effect of Brexit is that European utilities remain committed to developing the United Kingdom domestic supply chain. It can be considered to be as current inward investment flows as well as record low auction prices for delivering offshore wind energy as inspiring symbols of industry elasticity. In addition to this, the result of Brexit, the removal of EU renewable energy targets, under the Renewable Energy Directive, have give rise to greater uncertainty for the renewables sector. Now, government in United Kingdom has its own national targets relating to decreasing of emissions, but the EU targets, requiring a specific percentage of electricity to come from renewables, have played a vital role in shaping United Kingdom energy policy. In addition to this, goals set by government in EU for diverting waste from landfill, under the Landfill Directive, haw be important factor which is influencing the development of energy from waste. After the Brexit, the government in UK will be free in context of providing subsidies to technologies of their choice. The economic uncertainty created by Brexit has given rise to the deferral of investments in UK renewable industry. This factor also has direct as well as significant influence on investor decision related to investment in renewable sector.
Part 3 :
Conclusion
UK government decision to leave Eu have significant as well as long lasting effect on renewable sector. In addition to this, Investment can be thought of as being impacted by Brexit in various ways these are driven by trade-related output effects, short-term uncertainty over eventual outcome and risk to foreign direct investment
TASK 2
REFLECTIVE STATEMENT
Description:
I have learned about the way UK government decision to leave EU have affected the prospectus of investors related to the investment on renewable sector in United Kingdom. Brexit has led to the increase in cost of importing solar panel. I have noticed that Brexit has major economic impact. It has highly affected the profitability of companies operating in renewable energy sector. I have Been that due to Brexit many of organisation in renewable energy sector is facing funding issues, as before Brexit these firm were provided with funds for research and development activities. I have also noticed that changes in taxation policy by government have adverse effect on the profitability of firm operating in renewable energy industry.
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Feelings:
When event was happening, I was wondering that about the way Brexit will have influence on the investors decisions related to investing in renewable sector. I have concern about the issue considering the economic impact if Brexit. I was waiting nervously to see the way nation’s withdrawal from the European Union, known as Brexit, will affect companies operating business in renewable sector. I also had a thought that whether Britain meets its commitments to cut emissions of planet-warming greenhouse gases.
Evaluation:
I have noticed that when the companies in renewable energy sector was struggling for finding the sources of funding, during that time government in nation has reduced various subsidies which has assisted new technologies in becoming more commercially viable. I have noticed that , after Brexit also, EU government was committed to support renewable sector. After considering all the facts I don’t see the environment side and renewable energy being predominantly high on the administration’s plan.
Analysis
I have analysed that Brexit has lowers the confidence level of investors in context of making investment in renewable sector in United Kingdom.
I have also examined that government in UK has decided to set their own goals as well as policies for carbon cutting target. I perceive that the legal authority in United Kingdom should not do so. I think changing setting new targets as well as changing the policies strategy has been adopted by government in order to make admirative procedure easier. I also perceive that Brexit may bring benefits for clean energy.
CONCLUSION
It has been concluded from the report that Brexit have both positive as well as negative effect on the UK prospector to renewable sector. It has also been concluded from the assignment that Economic impact of Brexit have negative influence on investors decision related to making investment in renewable industry. Project has also concluded that changes in political conditions as well as amendments in taxation policy have adverse effect on the profitability of renewable industry. It has been concluded from the study that due to Brexit companies in renewable sector is facing funding issues.
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