Brexit fallout: higher UK energy storage costs

The UK's departure from the European Union is making storage more expensive.

The UK’s departure from the European Union is making storage more expensive.

By Jason Deign

One immediate result of the UK’s decision to leave the European Union is likely to be higher energy storage costs, Energy Storage Report has learned.

The June 23 vote to split with the Union, led by England and Wales, sent sterling tumbling against the dollar. Each pound was worth USD$1.48 on the day of the referendum, versus $1.31 yesterday, an almost 12% drop.

Sterling has also fallen almost 9% against the euro, from €1.30 on June 23 to €1.19 yesterday. This means the cost of importing storage technologies has likely risen by around 10% in the last month.

Nor is it clear whether sterling’s malaise is likely to improve over time.

Joseph Wright of Pound Sterling Forecast this week said: “Moving forward I’m expecting the financial data to continue to disappoint on release, mostly due to the uncertainty created by the Brexit.
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