Firstly, over-regulation from the EU that limits new wind developments could be watered down. “There is good and bad for the renewables industry in terms of the UK’s current relationship with the EU,” said Pinsent Masons partner and planning specialist, Jennifer Ballantyne. "The bad is that some segments of the market — for instance onshore and offshore wind — are over-regulated. The EU imposes particular requirements which means the development process needs to be conducted in a particular way and a whole load of constraints and extra costs are introduced.”
She added: “The clearest example is the designation of environmentally protected areas, some of which are in exactly the sort of places where one would want to build onshore or offshore wind farms. Some in the UK have never been convinced by the science that underpins those designations and concerns have been expressed that designations are politically motivated.
"Forward-thinking developers may already be reviewing their thinking around areas currently designated or proposed for designation as having EU protection on environmental grounds. If there is a relaxation at a UK level that could be both commercially significant and controversial."
Secondly, Pinsent Masons highlighted that the removal of the restrictive State Aid rules may have an impact on the industry. Partner Gary McGovern said: “State Aid rules which impose a requirement to maintain a level playing field could be gone and so create new opportunities.
“For instance, a live issue currently is whether proposals to allow onshore wind projects on the Scottish Islands to retain access to the Contracts for Difference regime would fall foul of State Aid rules if at the same time mainland wind projects are excluded. There could also be selective interventions to stimulate UK renewables manufacturing. All the major kit for renewable infrastructure is procured from continental Europe as there is little manufacturing base in the UK. There could be greater opportunity to stimulate that base through targeted action without fear of triggering State Aid rules, however there would be significant ground to be made up.”
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