Brexit curtailing EIB funding for UK energy

Just one UK energy project has received funding from the bank since Article 50 was triggered in March

The European Investment Bank has funded just one UK energy project since the triggering of the Article 50 process to withdraw from the EU nearly six months ago.

The EIB’s website shows that since the Article 50 notice was served on 29 March, the only UK energy project the bank has approved has been SGN’s extension of the gas pipeline network to remote areas of rural Northern Ireland, which received €57.6 million (£53 million) on 8 June.

In the three months leading up to the serving of the Article 50 notice, the EIB approved funds for six UK energy projects worth a total of €874.8 million (£805.9 million).

According to The Times, the EIB placed a moratorium on UK projects after the Article 50 process began in March.

The EIB has been a significant source of support for energy infrastructure projects, particularly for newer technologies like offshore wind turbines.

However Anthony Froggatt, a senior research fellow in energy and environmental issues at the security think tank Chatham House, said in the year to date there had not yet been a “significant fall” in the volume of loans issued by the EIB for energy projects compared to 2016.

RenewableUK executive director Emma Pinchbeck said the UK would remain an attractive destination for investment in offshore wind projects even if EIB loans dried up following Brexit.

She said: “The UK is the world leader in offshore wind and that isn’t going to change in the future. There are huge, global opportunities to invest in this booming market and the government has been quick to recognise this fact.

“International banks see the ambition in the UK’s thriving offshore wind and the coming years will see the industry continue to grow and create British jobs.”

Lawrence Slade, chief executive of Energy UK, said: “Leaving the EU will remove some significant sources of funding for energy projects, like the European Investment Bank.

“Post-Brexit the UK must remain an attractive location for investment in order to keep the lights on, continue to reduce carbon emissions and provide affordable energy to consumers. That is why it is essential that government’s industrial strategy provides a long-term, stable and predictable framework and companies have access to the funds needed to develop the technologies that will continue the decarbonisation of our economy.

“Brexit presents an opportunity for a bold and ambitious plan for energy with the UK showing global leadership in meeting climate change targets, with more jobs, investment and environmental benefits.”