The impact of Brexit on the EU energy system

On aggregate, the energy system related impact of Brexit on EU citizens and companies will be limited. With or without the UK, the EU will be able to pursue its energy and climate policy goals relatively unaltered. - An immense number of very important details will need to be resolved in a short period of time. The UK's status in EU regulatory authorities, a potential linkage of emission trading systems and the valuation of nuclear material are only three of the complex legal and political issues. - Special attention should be paid to the impact of Brexit on the Irish energy system. The dependence of Ireland on energy trade with the UK and the joint electricity market with Northern Ireland make the Republic of Ireland particularly exposed to Brexit. - After Brexit, the EU might choose to recalibrate its 2030 greenhouse gas emissions (non-ETS) and 2020 renewables targets. Depending on the methodology chosen, this could imply a shift in the burden between Member States or a change in the EU's overall level of ambition. - Brexit might imply higher emission allowance prices in the longer term. In the very near term, however, the off-loading of allowances held in the UK might cause prices to dip