Energy Storage Post-Brexit: How Will It Fare?

Nearly a year on from the referendum, it is still difficult to assert with any confidence what direction the UK's energy sector will take post-Brexit.

One thing we do know is that when the UK leaves the European Union, it will also leave the European Atomic Energy Community. This will pave the way for complicated bilateral negotiations with other nuclear powers, and leave the UK's newly re-awakened nuclear generation industry in uncharted territory. At best, we can expect some delays in the deployment of new nuclear plants.

Another "known" is that the government's capacity mechanism is failing to produce high enough prices to ensure investment in new build gas fired plants. This leaves us with an ageing thermal fleet of generating assets with very few replacement options on the horizon.