600MW Round 2 Victorian Renewable Energy Target (VRET) auction to drive Victoria’s Covid recovery

Victorian Government announce market sounding process to test industry interest and capacity for 600+ MW of new solar, wind and other renewable energy projects. Round 2 VRET auction The Minister for Energy, Environment and Climate Change, Lily D’Ambrosio, announced on 2 September 2020 the commencement of a market sounding process from interested proponents for the … Read more

With its multiple facets, the legal side of decarbonisation may not be highly visible, but it is strategically important – starting now

The challenges of climate change seem to be taking a back seat to economic stimulus. However the process of decarbonising the economy should begin to pick up steam given the ecological origins of the health crisis, the call from 12 countries (including France) to make the Green Deal “a roadmap to responding to the economic crisis”, and the publication on 23 April 2020 of the decree adopting France’s low carbon strategy for achieving carbon neutrality in 2050. Read more

Analysis of Royal Decree-Law 23/2020, of 23 June: its impact on renewable energy

On 24 June Spain’s Official State Journal (Boletín Oficial del Estado) published Royal Decree-law 23/2020, of 23 June, which approves measures in relation to energy and other areas to stimulate economic recovery (“RDL 23/2020”). RDL 23/2020 entered into force on 25 June 2020, although it has yet to receive final approval from Spanish Congress. RDL 23/2020 contains measures that affect a number of different sectors, but it primarily contains provisions for the electricity sector, with a particular focus on the regulations governing renewable energy generation facilities. Some of the measures (such as the design of the new renewable energy auctions system, the regulation of hybridisation and storage and independent aggregation) were already included in the Bill on Climate Change and Energy Transition (Proyecto de Ley de Cambio Climático y Transición Energética) (the “Climate Change Bill”) , which was sent to Spanish Congress on 19 May (which we covered in another e-bulletin - see here). The approval of those measures in RDL 23/2020 means that they can be brought into effect immediately. Read more

Investments in Energy: The Case for Oil and Gas [In a Nutshell]

Joining William Powell and Joseph Murphy of Natural Gas World, Lewis McDonald discusses what the future now looks like in terms of investments in energy, namely oil and gas. Given the burgeoning global population, rising standards of living and climate goals, there has been a serious increase in awareness and concern in global climate change around the world. The environmental, social and governance (ESG) agenda is now at the top of many companies’ priorities though currently appearing to mainly affect companies in Europe and less so in Asia. Prior to the outbreak of the Covid-19 pandemic, ESG was the major issue being discussed in board rooms. With about 12,000 entities, together controlling around $14 trillion, divesting or wanting to divest from fossil fuels primarily based on consumer demand and consumer sentiment and where the laws and regulation are heading, we have seen rather a chilling effect on investment in the oil and gas sector – and the big question is ... where does it all go from here… Read more

Future Cities Series: Emissions down in lock-down ⁠– how can we lock-in the climate gains?

We are well into the pandemic and lockdown in many regions, so it is natural to ask the question, “when will this end and when will we return to normal”... The problem is, “normal” was not sustainable, in so many ways. Those of us in the energy industry particularly know that to be true. The “business as usual” scenario put out by the International Energy Agency in its 2019 World Energy Outlook does not make for happy reading. It had us on a crash course towards over three degrees of temperature increase due to carbon dioxide emissions from fossil fuel consumption. The IEA also has a “sustainable development scenario” which keeps us within the Paris limits of 1.5 degrees. The only problem is that, according to the OECD, we would need to spend €6.3 trillion per year globally in each of the next 10 years for us to get there. To give you a feeling for how much money that is, the total size of the global economy is estimated at around $86 trillion. And so the challenge seems virtually impossible. Read more

The Spanish Government approves a Bill on Climate Change and the Energy Transition: analysis of the main aspects

On 19 May 2020, the Council of Ministers approved the Bill on Climate Change and the Energy Transition (Proyecto de Ley de Cambio Climático y Transición Energética (the “Bill”), which it sent to Spanish Parliament for processing and final approval. The Council of Ministers had made a commitment to pass the bill within its first 100 days, included in its Statement of Government in the face of the Climate and Environmental Emergency approved on 21 January 2020. The approval of the Bill brings an end to a administrative process that has been more than one year in the making. The Council of Ministers, in effect, took into account the first Draft Bill dated 22 February 2019, which was submitted to public consultation and successive reports issued by the different Ministries, considerations from the Advisory Council for the Environment and the Sector Conference of the Autonomous Regions, a report issued by the Spanish National Markets and Competition Commission (the “CNMC”) and a report issued by the State Council. The text finally sent to Parliament contains the modifications made to the initial Draft Bill throughout that process. Read more

Commercial Court interprets indemnity clause in SPA to exclude damage which occurred pre-execution

The Commercial Court recently dismissed a claim to recover the cost of repairs to two offshore transmission cables linking the Gwynt Y Môr offshore wind farm in North Wales with the National Grid, which the claimant had sought to recover under an indemnity for “Pre-Completion Damage” in a business sale agreement: Gwynt Y Môr OFTO PLC v Gwynt Y Môr Offshore Wind Farm Ltd [2020] EWHC 850 (Comm). Although the indemnity did not expressly state that “Pre-Completion Damage” was limited to damage occurring after the agreement was signed, the court... Read more