A strong collaborative relationship with the European Union on energy policy after Brexit will be critical for the long-term strategic interest of the UK and the continuing decarbonisation of its economy, according to SSE chief executive Alistair Phillips-Davies.

Phillips-Davies said the UK has not shied away from leading on climate change, and should continue to work with the EU in leading international efforts. “Carbon pricing is a key and practical instrument, and the EU’s Emissions Trading Scheme is the largest emissions trading scheme in the world. Continued UK participation in the EU ETS following Brexit should be welcomed from all sides of the negotiation table.”

The SSE CEO said he also believed that the single electricity market on the island of Ireland should be maintained and the integrated single electricity market project should be completed.

“The combining of the Northern Ireland and Republic of Ireland electricity markets has been a success and represented the first project of its kind, to operate with dual currency and across multiple jurisdictions.”

Phillips-Davies said the UK and EU should continue to collaborate on delivering large, ambitious energy projects for mutual benefit. “The North Sea, which we perhaps associate more closely with the oil and gas industry, has unfulfilled renewable energy potential that should be harnessed.

“SSE is seeking to develop offshore wind farms in the Dogger Bank area of the North Sea, delivering nearly 4GW of power capacity. There is potential to connect and provide power between the UK, Germany, Denmark, the Netherlands and Norway,” said Phillips-Davies.

“Working with our European colleagues we can make the North Sea low carbon grid a reality. Schemes such as the Connecting Europe Facility and Horizon 2020 can provide support and funding opportunities for ambitious projects.

“These are complex matters, but the sooner the parties to the negotiations on the future UK-EU relationship on energy are able to agree a way forward, the better it will be for efforts to take forward the next stages in decarbonising our economy.”

Transition

SSE chief sets out post-Brexit vision for UK-EU energy ties