Brexit and Its Energy Implications: A summer read - Book Review

Brexit and Its Energy Implications: A Book Review

"Brexit and Energy Law: Implications and Opportunities " by Silke Goldberg and Ana Stanic is a highly recommended summer read that sheds light on the uncertain and complex energy landscape between the UK and the EU-27. As Carl von Clausewitz aptly stated, the intellect's inner light and the courage to follow it are crucial in navigating the battle with the unexpected.

If the mind is to survive this constant battle with the unexpected, two qualities are indispensable: first, an intellect that even in this moment of intense darkness retains some trace of the inner light that will lead to truth, and second, the courage to go where that faint light leads.?— Carl von Clausewitz

The above quote by the famous military strategist, very well applies to a great guidance offered in the reviewed book on “how to” of dealing with the relatively uncertain and complex rules applicable on energy issues surrounding UK and its newly found neighbours of EU-27 in the energy front. Particularly as beyond 2026 there is no clear “light” of guidance, neither it is clear which regulators and who in detail will be in charge of decarbonization issues nor simpler issues like interconnection rules - hence the book offers a "faint light" at least.

The book brings together experts from the UK and Europe to provide a comprehensive analysis of the impact of Brexit on the energy sector. With the EU's trend towards greater integration and liberalization of energy markets, Brexit fundamentally changed the relationship between the UK, the EU, and its Member States. The challenges posed by the UK's departure are significant, particularly in terms of energy trading, access to EU energy markets, energy supply security, and the implications for renewables, the environment, and climate change.

The authors emphasize the need for more certainty in this evolving landscape, especially as the European energy sector undergoes decarbonization and energy transition processes. One aspect that could be further developed in the book is how regulatory authorities should address decarbonization beyond electricity and gas.

The appointment of a strong regulatory?authority?with clear decarbonization mandates for decision-making?at this junction, if feasible,?and in any updates to the Trade and Cooperation Agreement (TCA) post-2026, is necessary.?Article 310 of the TCA - now positioned in section on "electricity and gas" - mentions the designation and maintenance of such a regulatory authority or even authorities for decision-making.?However, it is not entirely clear from literature or rules, or announcements , published so far?who?that authority?or authorities?will be?from EU-side for decision-making -?will it be?ACER, or a set of new regulatory bodies to be yet appointed by the EU? ?

Article 317 of the TCA where "the contacts and administrative arrangements" are grounded between ACER and Ofgem do mention "infrastructure planning", "offshore energy" and "gas decarbonisation" as general collaboration themes, inciting hope of direction of travel post-2026 for decision-making on decarbonisation. In my view - and I may be biased as former alternate member of the ACER Board of appeal (2016-2021) - a stronger coordinating role for authorities like ACER and these new regulatory authorities to be designated under the TCA, alongside national regulatory bodies and Ofgem, should be considered if the progress on decarbonisation matters, and it does .

Hopefully, future editions of the book will address these challenges. In the meantime, for those involved in building interconnected wind and green energy projects between the UK and the EU-27, this book is highly recommended for a summer read. I am hopeful it will draw inspiration for action on decarbonisation being continued soonest in the spirit of recent Oostende-summit .

Disclaimer: views are personal, and I am most happy to be corrected on any of the above.