Brexit uncertainty has ‘slowed’ offshore wind investment, Woodmac says

Offshore wind vessel.
The Floating Offshore Wind event will cover how to strengthen the supply chain, operations and maintenance.

The uncertainty surrounding Brexit has “slowed” UK offshore wind investment, according to analysis by Wood Mackenzie (Woodmac).

A new report by the energy research group claims the UK is the largest offshore wind power market in Europe, and is expected to remain so until 2028.

But about 68% of the offshore wind supply chain is sourced from non-UK based firms.

Woodmac said any future “trade barriers” imposed as a consequence of Brexit could further diminish the UK supply chain.

Soren Lassen, offshore wind analyst at Woodmac, said:”The establishment of a new facility has a long lead time and is part of an overall global strategy.

“We have yet to see the UK supply chain diminish currently. In fact, the UK supply chain is ramping up.

“However, the uncertainty created by Brexit could have a detrimental impact on supply chain plans which are in the early stages of planning, meaning its impact will be felt at a later stage.”

Woodmac said a hard Brexit would negatively affect both the UK and Europe, due to the supply chains being so closely interconnected.

A hard Brexit would also have the “highest impact” on the next Contracts for Difference (CfD) auction round for offshore wind, planned for May 2019.