It’s been another busy period for our renewable energy practice, and the pace of change across the sector shows no signs of slowing.
We are seeing clients navigate a combination of opportunity and uncertainty and, while this is a trend that has underpinned the renewable energy sector from its inception, in current terms, we are tackling some of the largest fundamental regulatory changes since the introduction of BETTA (British Electricity Trading and Transmission Arrangements) in 2005.
On the one hand, there remains strong appetite for investment, innovation and deployment – across wind, solar, storage and newer technologies. On the other, there are real challenges around grid capacity and constraints, planning reforms, significant regulatory change and supply chain and construction risk. Much of our role has been helping clients join those dots in a way that keeps projects moving forward towards connection and operation, and thereby making a meaningful contribution to the country’s wider net zero commitments.
A few recurring themes have come through strongly from recent work:
Connections Reform
The most significant change to the grid connection process in decades continues to shape project timelines and deal structures. The evolving connections regime is creating both challenges and opportunities, and we’ve been working closely with clients to navigate the implementation of Connections Reform on their own projects, and incorporate the risk/reward of the process into transaction structures.
Transaction activity remains strong
There continues to be a healthy pipeline of M&A and investment activity, particularly as developers tackle the Connections Reform process, and projects find their place (or not) in the connection queue. The market for ready-to-build and operational assets remains strong, with transaction structures becoming more complex in terms of conditionality, deferred consideration mechanics and earn-out potential as developers seek to manage and mitigate risk in project delivery.
Pragmatic approaches to project delivery
With cost pressures and supply chain issues still a feature, there is increasing focus on robust contractual structures and risk allocation through development and construction phases.
Life Extension and Repowering
There is an increased focus on considering what happens as projects mature towards the end of their operational life, with many of our developer clients looking to extend the life of existing wind farm projects and put in place agreements relating to the development of new repower projects at existing sites.
Private wire and behind-the-meter solutions
As corporates look for greater control over energy costs and security of supply, private wire projects are becoming an increasingly important part of the energy landscape.
Emerging technologies gaining traction
Alongside established renewable energy technologies, we’re seeing growing interest in areas such as district heating, energy storage, pumped storage hydro, and other innovative solutions supporting decarbonisation.
Against that backdrop, much of our work has been about helping clients cut through complexity and keep momentum up.
That might mean structuring a transaction so it works despite uncertain connection timelines; finding a way through evolving regulatory requirements; tackling bespoke projects issues such aviation, interface or wake-loss arrangements; supporting delivery in accordance with subsidy regimes; or helping parties align on a bankable approach to construction risk.
What ties it all together is a focus on practical, commercially grounded advice that supports delivery.
Work highlights
Over the past year we’ve supported clients across a broad range of technologies and transaction types, with some key highlights including:
Energy M&A and Financing
Advising Orsted A/S on the disposal of its UK onshore assets, consisting of 15 projects across a range of onshore wind, solar and BESS assets. The sale was part of the wider disposal of Orsted A/S’ entire European portfolio with a deal value of €1.4bn.
Advising Orsted Onshore UK (now Perigus Energy) in relation to M&A activity in the UK solar market, including its joint venture with PS Renewables in relation to a proposed 500MW solar farm.
Advising NatWest, as lenders, in respect of the Scots law aspects of the project financing of OnPath Energy’s 33.4MW Mill Rig onshore wind farm – including specialist advice on the recently enacted Moveable Transactions (Scotland) Act 2023 and the Act’s implementation and application in Scottish renewables financing.
Advising CIBC, MUFG, and NatWest as lenders on the Scots law elements of the £245m financing of a major 500MW/1,000MWh battery energy storage project in Eccles, Scottish Borders developed by Matrix Renewables.
Advising on the Scots law aspects of InfraVia Capital Partners’ acquisition of a majority stake in both Balance Power Projects Limited and Mercia Power Response, merging the two companies together to form Supernova Power.
Advising Pencloe Wind Energy Limited (Invenergy LLC) in relation to the Scots law aspects of the £150 million financing of the 81MW Pencloe onshore wind farm by Cooperative Rabobank U.A. and National Westminster Bank plc, having advised as lead counsel on project development and construction matters across property, planning, grid, construction contracts and offtake.
Energy Development & Regulatory
Advising Orsted A/S on the disposal of its UK onshore assets, consisting of 15 projects across a range of onshore wind, solar and BESS assets. The sale was part of the wider disposal of Orsted A/S’ entire European portfolio with a deal value of €1.4bn.
Advising Orsted Onshore UK (now Perigus Energy) in relation to M&A activity in the UK solar market, including its joint venture with PS Renewables in relation to a proposed 500MW solar farm.
Advising Orsted A/S on the disposal of its UK onshore assets, consisting of 15 projects across a range of onshore wind, solar and BESS assets. The sale was part of the wider disposal of Orsted A/S’ entire European portfolio with a deal value of €1.4bn.
Advising Orsted A/S on the disposal of its UK onshore assets, consisting of 15 projects across a range of onshore wind, solar and BESS assets. The sale was part of the wider disposal of Orsted A/S’ entire European portfolio with a deal value of €1.4bn.
There are no signs of the pace of change in the sector slowing down, and our renewable energy specialists will continue to guide clients through what’s to come, as they take their projects from inception, through development, construction, financing, commissioning and generation. Please get in touch if you’d like to discuss how we can help.
Neil Bruce | Peter Ward
Co-Heads of Renewable Energy, Burness Paull LLP
