THE UK’s renewable energy industry could be harmed with the loss of incentives to develop a low-carbon economy if Britain leaves Europe, legal experts have warned.

Law firm Pinsent Masons said a vote to leave Europe could remove legally binding carbon-free targets, which in turn could dilute the political will to deliver green power.

“It's a huge contradiction that Brexit could result in a system where it is easier to develop renewables infrastructure in the UK, but at the same time there could be no strong incentive to make it happen,” said Jennifer Ballantyne, a partner and planning specialist at the firm.

"There is good and bad for the industry in terms of the UK's current relationship with the EU. The downside is that some segments of the market – for instance onshore and offshore wind – are over-regulated, with the EU imposing particular requirements which means the development process needs to be conducted in a particular way and a layer of constraints and extra costs are introduced.”

Ballantyne cited designated environmentally protected areas as an example of over-regulation and exactly the types of places where there would be interest in building onshore or offshore wind farms.

She explained: “Some in the UK have never been convinced by the science that underpins those protected designations, with concern expressed that some designations are politically motivated.

"Forward-thinking developers may already be reviewing their thinking around areas currently designated or proposed for designation as having EU protection on environmental grounds. If there is a relaxation at a UK level that could be both commercially significant and controversial."

However, the opportunity to radically overhaul regulation if Britain is out of Europe could be counter-balanced by the removal of legally binding carbon-free targets – which will undermine the political appetite to realise the full potential of renewables.