For close to two years now, energy sector commentators have spoken of a ‘trilemma’: a struggle to balance the three competing imperatives of energy transition, security, and affordability. Of these three, energy transition arguably looms largest. For John Dewar, project, energy and infrastructure finance partner at Milbank and Legal 500 Hall of Famer for power: ‘The push to the energy transition has been the most disruptive change in the energy market in decades.’
What made you decide to become a lawyer and, once you’d made that decision, why energy?
I decided to become a lawyer in my early teens, through watching courtroom dramas on TV. As it turned out, however, I have only appeared in court once and that was sitting on the bench (another story!). Becoming a renewable energy lawyer was somewhat fortuitous. I had been doing fairly high-value commercial property work for a number of years, and a developer who had worked on early wind farms in Cornwall and Wales wanted to try and develop the first ones in Scotland. He asked his English lawyer who to use and they recommended a large Scottish law firm. After a short period, the developer decided that firm wasn’t showing enough interest in his work so turned to someone in Scotland he had done a joint venture with and asked him. I was that company’s lawyer and I was recommended. The developer made an appointment, came into my office and asked (this was 1993) if I knew anything about wind farms. Being honest, I said no. He then asked if I would be interested in learning, and I said it sounded fascinating. The rest is history and 30 years on I am still learning!
What have been your career highlights?
Each time a renewable energy development on which I have worked is completed and becomes operational I feel proud and I have been lucky enough to be involved in 87 to date (and counting!). I’m also proud to have led the Harper Macleod team to Energy Team of the Year at the Scottish Legal Awards in each of 2011, 2013 and 2016 and being ranked as a leading lawyer in renewable energy in the Legal 500 for the last eight years.
What has been the biggest achievement of your career to date?
In a 40-year career I have inevitably faced many challenges, including serving two spells as managing partner and one as senior partner, starting a renewable energy practice from scratch and being involved in numerous complex multimillion-pound transactions. But one thing I remember is being asked a question by a client as a trainee solicitor and giving an answer (which turned out to be correct) with hesitation and saying I would like to check that. The clients said, somewhat sarcastically: ‘Why don’t you go and ask a lawyer?’. I never forgot that and vowed to be prepared for anything that might come my way in the future.
What has been your biggest professional challenge and what did you learn from it?
The biggest change has been the growth in renewable energy work; the number of companies operating in that field and the number of people employed. When I helped found the Scottish Renewables Forum in 2000 there were initially 12 of us but we grew it to over 300 members, becoming the leading trade body for the renewables sector in Scotland. And a recent survey showed that the Scottish renewable energy industry and its supply chain supported more than 42,000 jobs and generated over £10bn of output in 2021. That has undoubtedly been a change for the better.
Would you recommend a life in energy law to your younger self and why?
Definitely. You are working in an area where projects not only provide employment but also help our environment and hopefully make a difference to our lives as we fight to combat climate change.
What advice would you give to those who want to get to where you have?
Opportunities will come to you in life; the difference between successful people and others often comes from making the right decisions when those opportunities arise. I made the right decision when the opportunity arose to become involved in renewable energy work. But I also then backed up my decision by committing to it (I passed my commercial property work to other colleagues) and capitalising on it by immersing myself in the industry, going to all the events (often as the only lawyer in attendance in the 1990s and early 2000s) and picking up lots of clients because they saw me as someone who was genuinely interested in what they were doing and wanted to help them.
What do you think is the most important change that needs to happen in energy law?
It’s not so much energy law as energy policy. The UK government needs to recognise that the need for and use of energy is one of the main forces affecting our lives and accord it that level of importance. The way we live and work is intrinsically linked to our access to energy and, in turn, the type of energy we access impacts our environment. Since the Department of Energy was first established in 1974, the number of changes of departmental name and the number of politicians who have been responsible for energy is staggering – no wonder there has been so little continuity, consistency of approach, or long-term planning.
What do you think is the biggest challenge facing your clients right now?
Lack of consistency in energy policy, lack of investment in grid infrastructure, planning decisions taking too long and rising costs.
And finally – what was your favourite childhood book and why?
Robert Louis Stevenson’s Treasure Island. It was the first book I remember my dad reading to me.
David Bone is a senior partner at Harper Macleod.
Country goals
In 2023 Bulgaria adopted key legislation amendments that are expected to lead to a boom in green energy investments in the following years. The measures are taken in response to the decline of renewable energy sources’ share in the country’s end consumption for the last two years. The 2022 share of renewable energy sources in the end consumption of electricity in Bulgaria was 19.1% remaining far from the 2030 goal of 27%.
The simplification of the administrative procedures in the last quarter of 2023 combined with the low taxes and the long annual hours of sunshine in Bulgaria led immediately to intensification of the green energy investment initiatives. Until recently, the foreign investors in this sector originated from Germany, Czech Republic, Italy and Austria, leaving the Bulgarian companies dominating 70% of the market. These figures are about to change since Israeli, Chinese, Danish, US and Indian companies already expressed serious interest in the development of large-scale energy projects in Bulgaria.
Our experts estimate that by 2030 Bulgaria will double its current 2.4 GW renewable energy production capacity, thus arriving ahead of EU’s goals for the country.
Incentives for project development
The recent changes in the legal framework paved the way for shorter project development terms, improved production efficiency and increased financial flexibility for electricity producers.
The amendments in the Energy Act filled a pre-existing legislation gap with regards to the energy storage. They gave a detailed legal basis for the realisation of projects under the EU Plan for Reconstruction and Resilience for Bulgaria investing in the equipment of renewable energy power plants with batteries. Other amendments charged the Energy Exchange operator with the establishment of market for exchange of guarantees of origin. The commercial platform is under development and is scheduled to launch in early 2024.
Business will further benefit from the shortened period of six months for conclusion of grid connection agreements with the grid operator and the elimination of redundant steps in the procedure for designation of agricultural lands for production of electricity. The authorities will now have much less reasons to reject initiatives for construction of new power plants than before.
Green energy for own consumption of the industry
Special attention shall be given to industries striving to reduce their carbon footprint. Aurubis Bulgaria, one of the largest European copper producers, is in the process of constructing solar power plants that will satisfy 20% of its energy needs. Other big factories in the areas of electrical appliances, cement, clothing, automobiles etc. have announced even more ambitious plans to become carbon neutral in the near future.
The Bulgarian government contributes to this process by providing financial support to small and medium enterprises’ to cover their increasing electricity needs. The €1.2bn, dedicated by the EU to support the Bulgarian transition from coal to green energy, shall be partially consumed in 2024 in the form of grants provided by the Ministry of Innovation and Growth and the Ministry of Energy to support private projects for production of green energy for their own needs.
Offshore wind
An entirely new line of opportunities may open in the beginning of 2024 in case of the adoption of а Draft Law on renewable energy sources in Black sea territories. Once into force, this piece of legislation will provide for the granting of concessions for installation of offshore wind power plants. The concessions will be granted for a period of 30 years, with an option to be extended by five years. Taking into account the much lower initial investment compared to renewable energy projects on land, the 35 years should be sufficient for the accumulation of an attractive profit.
An offshore energy capacity development plan is anticipated to be adopted within the first half of 2024. It is expected to envisage the development of more than 3 GW offshore wind plants and will deal with the determination of priority areas for construction of wind power plants and the underwater routes of technical infrastructure, including power cables, substations, etc.
Incentives for the households
Households will also contribute to the upcoming energy developments. With legislative amendments from November 2023, it has been prescribed that from 1 January 2026, household customers will be supplied only by electricity traders at freely negotiated prices. Micro-investments in renewable energy are encouraged through the long-awaited transposition of the provisions of Directive (EU) 2019/944 related to new participants in the electricity market – citizen energy communities and active customers. Еnd customers are entitled to participate together with producers in renewable energy communities that will be able to produce electricity without a licence and sell the excess amounts of energy.
Households and small businesses will also benefit from the shortened terms for development of renewable energy sources with a total installed capacity of up to 1 MW. Further facilitation is achieved by the elimination of the requirement for issuance of a building permit for installations on roofs and facades of residential buildings for production of electricity from thermal and solar sources for own consumption with a total installed capacity of up to 20 kW.
Pending projects
2023 was marked by the commissioning of one of the biggest Bulgarian photovoltaic power plants with installed capacity of 123 MW and located on the south slope of Verila mountain. The investment was 100 MM EUR, 75% of which were borrowed from two banks. The power plant has ten-years power purchase agreements with two companies from the IT and telecom sectors.
A 250 MW hybrid project (wind and solar) is on its way of realisation in the south-east of Bulgaria.
Andrey Delchev & Partners – Eurolex
The firm advises national and foreign investors (including corporations from Israel, US, China, Germany, India etc.) on the financing, development, construction, operation and management of power plants. Due to their paramount experience the company’s experts, led by managing partner Andrey Delchev, are regularly assigned by national authorities with legal analysis and law drafting in the energy field.
Since 2021, the Legal 500 Green Guide has been highlighting the law firms making significant contributions to the green transition around the world, be it through client work, external engagements, internal initiatives, or all of the above.
Continue reading “A clean break – how law firms are helping to power the energy transition”
What made you decide to become a lawyer and why did you choose to go into infrastructure transactions?
I chose to study law with thoughts of becoming a barrister. While at university I was introduced to City law firms through the milk rounds and was drawn to the emphasis on working as a team, opportunities to work on headline deals, international secondment opportunities… and the law school grants!
At Clifford Chance, having worked on infrastructure projects in Singapore as a trainee, on qualification I leant towards the project bond-financed PFI projects that our team was working on. The deals had a good level of complexity, but related to tangible assets like hospitals, so I could understand the real-world impact of the projects I was supporting through my work. This became a running theme in my career as I moved towards renewables and energy transition transactions, which make up the bulk of my practice today.
What have been your career highlights?
When it comes to transactions, I always think of the most recent one! We have just signed the H2 Green Steel transaction in Sweden, where we acted for the mezzanine lenders. It is a fantastic first-of-a-kind project with a great project team and inventive and engaged clients. As the world’s first large-scale green steel project, it is genuinely a game-changing transaction, involving 1GW of electrolysers, powered by Sweden’s renewable energy, to produce hydrogen to replace coking coal in the iron extraction process, lowering CO2 emissions by up to 95%. We need more innovative projects like this, across all industries, to demonstrate what is possible.
Another recent highlight has been advising on the funding of the Global Polio Eradication Initiative. Not energy and infrastructure, true, but through many years working with EIB I am pleased to still advise them on many innovative structures and products and have now supported them on several health-related mandates, including providing funding to Gavi during the Covid-19 pandemic to support the supply of Covid-19 vaccines to low and middle-income countries. This particular transaction involves EIB providing funding to the Global Polio Eradication Initiative via UNICEF and the World Health Organisation, backed by support from The Bill and Melinda Gates Foundation and the European Commission. It was an innovative, outcome-based structure which had to cater for the different policy requirements of all organisations involved. Certainly a challenge, but with work on all sides and the tenacity of several key individuals, the arrangements were agreed. Helping to eradicate polio equals a good day at the office!
Finally, being a member of our world-wide projects group (WWPG). It is such a fantastic group of energised people with extremely strong connections across the globe, who work on amazing deals together. Between us, we have seen it all, and everyone is always happy to share their experiences and support each other. Looking forward to our next get-together!
What has been your proudest professional moment?
Aside from making partner myself, I am proudest when those I have worked with and supported do well – whether that is within Clifford Chance or outside it. That can be a big moment for them (a new job or partnership), or just a presentation that they smash. Clearly, their successes are down to their hard work, not mine, but I am a proud mother hen regardless!
What has been your biggest professional challenge and what did you learn from it?
I am sure it is yet to come! With a career in law, your role is always evolving, and you are confronted with new issues every day. With the encouragement of others, I have put my hand up for opportunities (such as moving from our capital markets team to head up our energy and infrastructure team in London) and new responsibilities (co-founding our ESG board), which always bring challenges but also new experiences. Key learning is about getting involved, reading up, talking to lots of people and asking for support when needed, you can do it!
What has been the biggest change you’ve seen since you’ve started practising and has it made things better or worse?
One change is the reduction in big in-person meetings. Now, while no-one likes being stuck in endless meetings for weeks on end, I have to say I miss them. Meeting people and solving problems together is the best part of the job, and I find having people together in a room helps bring them together in approach too. It is also much easier to read the mood of the group, and a great environment in which to learn key skills. There is no one right way to be a lawyer and people have different strengths and styles. Seeing these play out in big in-person meetings is an invaluable experience for those starting out in their career.
Would you recommend a life in City law to your younger self?
Absolutely! There are very few careers where you can work your way up, on merit, to be the owner of a business. The partnership structure allows people with different, complementary skill sets to lead and succeed together. Even if partnership is not for you, it opens doors to many other roles and opportunities which, frankly, as a girl growing up in a small town in Shropshire, I was not even aware existed.
What advice would you give to those who want to get to where you have?
Work hard, be curious, support others (it is noticed and appreciated) and grab opportunities.
What is the most important change that needs to happen in City law?
You should ask new trainees that question! The industry has undergone a big change post-pandemic with the move to hybrid working, which many people love as it helps us manage life outside work and brings a bit more balance. That said, we are exploring ways to get the most from the team’s time together in the office. Everyone in the team has a responsibility to nurture the culture of the team and contribute to the growth and professional development of our people (lawyers and business professionals). That is not something to do when you have finished your ‘proper work’ – it is a core element of all our jobs!
What do you think is the biggest challenge facing clients right now?
Given my work on energy transition and sustainability, the challenges (and indeed opportunities) posed by climate change loom large. Clients need to strike a balance between maintaining profitable businesses, and ensuring they are sustainable and are not overly exposed to climate risks. Those risks are wide-ranging and include policy changes leading to stranded assets; extreme weather events disrupting business, staff and customers; social unrest; and insecurity. The good news is we can and must do something to avoid the worst outcomes, and in energy transition we need ambitious, innovative, bold leaders who are prepared to do things a little differently and sometimes take a leap of faith – our projects now do not always come tied up with a bow!
And finally – what was your favourite childhood book and why?
Shadow the Sheepdog by Enid Blyton, a story about a boy and his collie, and their life on a farm. My wonderful mum is from a farming background and so perhaps she instilled the fondness – although we never did get a collie despite my regular pleading. Maybe when I retire…
Clare Burgess is a partner at Clifford Chance.
Renewable energy projects are not regulated separately, the respective rules are embedded in the regulation of the given sector. For example, solar and wind projects have their rules within the frame of the electricity regulation, geothermal investors can look up the relevant provisions in the mining law. Note that investors will face turbulent legislative changes in the Hungarian energy sector, especially in respect of renewables. Therefore, renewable investors should pay meticulous attention to the actual legislative framework when considering an investment in Hungary.
One of the latest and most important legislative changes concerns the Hungarian FDI regulation. According to the new rules, the Hungarian state shall have a pre-emptive right in case of transactions related to photovoltaic generators (provided that the given transaction falls under the scope of the FDI regulation and meets the relevant thresholds).
Legislative barriers practically preventing the erection of wind parks have been amended: the prohibition to establish wind parks in the 12km vicinity of areas designated for construction (mostly residential areas) was decreased to 700 metres.
As a new legal instrument, so-called ‘facilitated regions’ can be demarcated by the competent minister in the future where shorter administrative deadlines will apply to foster the establishment of power plants using RES.
Yes. For new renewable energy projects aiming at electricity generation, the METÁR subsidy scheme is available, currently in the form of a green premium type subsidy allocated in the frame of a tender. The tender is technology neutral with one bidding round: the applicants shall make a bid for the initial subsidised price. Generators participating in METÁR shall sell the electricity produced in the market at prices they can achieve and shall receive a premium (the subsidy) on top of the reference market price. At the METÁR tenders, companies having a registered seat in the EU, EEA or Hungary and Hungarian municipalities are entitled to participate and power plants complying with the applicable technical requirements can be subsidised.
The possibility to activate a certain amount of balancing energy within a certain timeframe is of utmost importance because of the rapidly growing share of RES-produced electricity in the Hungarian energy mix. For this purpose, a brand-new subsidy available for energy storage was introduced recently, providing investment and income compensation, as well. A CfD-type structure was established for the income compensation where the subsidy will be calculated based on the difference between the net revenue claimed by the electricity storage investors in the tendering process (the strike price) and the reference net revenue that can be achieved by selling the services on the electricity market (the estimated market price). If the strike price is higher than the reference price, the investor would receive compensation from the TSO. Eligible entities are companies registered in Hungary or companies registered in an EEA member state having a branch office in Hungary with a Hungarian tax number and that obtained a grid connection right in respect of the project site. The energy storage facility shall be established in Hungary. An important new incentive is that tax relief has been introduced for electricity storage investments (with certain pre-requisites, needless to say).
It depends on the specific segment of the future investment, for example, whether the targeted segment is energy trading (retail and/or wholesale), electricity generation, storage or aggregation, whether we are talking about solar or wind projects, what the phase of development is, etc. As a common first step, investors must consider whether the intended transaction/investment falls under national security or FDI screening. Direct and indirect acquisitions might be subject to ministerial permit under both regimes, however, the in-scope target entities as well as the applicable thresholds are different. As a next step, if the target is an operating entity, the given sectoral legislation shall be considered transaction-wise since specific approval of the energy regulator might be required for the acquisition of shares in or assets of an energy licence holder company.
The implementation of the newest structures developed by the market (such as synthetic and sleeved PPAs) and incorporation of the more recent market players (such as aggregators, energy communities and prosumers) into complex legal relationships. Tailor-making of an ‘ordinary’ energy contract to the parties’ specific needs and expectations can also be a challenging exercise in the current market environment so that the product (being special on its own) and its pricing methodology can be in line with the parties’ business needs.
The character of the energy market has been rapidly changing in Hungary in recent years (starting from the growing share of RES-based production and the resulting system-balance challenges, through the more active participation of consumers on the market and the appearance of energy storage till the spreading of smart and remote control solutions) requiring lawyers to draw-up and negotiate legal solutions that mirror the parties’ economic aim and fit into the sectoral legislation (including the codes of the TSO and DSOs) at the same time.
If someone takes a closer look at Hungary’s National Energy and Climate Plan and the goals set for 2030 (12,000 MW in-built solar capacity), it can be seen that the market boom experienced on the Hungarian solar market is not close to its end, at all. Opening the door before wind projects is a clear sign of the legislator’s will to enhance wind investments in the country. Electricity storage projects are more and more frequent in the country supported by the new subsidies. In parallel, investors of smart grid solutions must also pay attention to the Hungarian market, not only because of the available funds but the simple necessity of technological developments in order to integrate the actions of different market players. Geothermal investors can benefit from a simplified regulation and even if hydrogen might play a crucial role on a longer run, special emphasis is put on green hydrogen projects in Hungary’s hydrogen strategy.
Disclaimer: This interview serves information purposes, only, and shall not qualify as legal advice. Information contained therein is not complete, and cannot serve as a basis for the articulation of legal standpoints and making business decisions. Circumstances not assessed and not mentioned here can lead to different statements and outcome. Neither Oppenheim Law Firm nor the author can be held liable for the content of this interview and for the fact that such statements are not necessarily correct in individual cases. Oppenheim Law Firm and the author exclude all liability for the consequences of any conduct based on the content set forth in this interview.
The Legal 500 energy rankings cover four core areas of the market – mining and minerals; oil and gas; power (including electricity, nuclear and renewables); and water, listing 70 firms and 150 individuals in total.
In a nutshell, the legal framework for renewable energy in Germany consists of a priority grid connection claim and support via the Erneuerbare-Energien-Gesetz (EEG) feed-in tariff for smaller installations and the market premium for larger installations. The market premium is paid by the grid operator and compensates for the difference between a bid awarded in a tender and the market prices.
The legal framework for renewable energy in Germany remains complex and dynamic. In the beginning of 2023, new privileges under building planning law were introduced for photovoltaic (PV) systems, hydrogen storages and electrolysers. Further, the Council Emergency Regulation (EU) 2022/2577 provided for exemptions from lengthy environmental impact and species conservation assessments in the approval process for certain renewables projects. Equally, the stipulation of the overriding public interest in renewable energy and battery storage systems served to speed up approval processes. In addition, the solar industry is eagerly awaiting the introduction of ‘Solar Package I’, the German government’s initiative to streamline the expansion of PV systems by reducing bureaucratic hurdles. This includes regulatory simplifications and initiatives for balcony PV systems and new forms of residential PV consumption. The law was strongly promoted in 2023 but will not be passed until early 2024.
Regarding hydrogen, the adoption of the Commission Delegated Regulation (EU) 2023/1184 (Delegated Regulation) was an important milestone at EU level, as it defines the conditions under which hydrogen can be considered green. It has recently been transposed into national law.
As digital real-time energy data will form the basis of the future renewable energy supply system, the German legislator also created a new legal framework for the installation of smart meters in 2023. The law on the resumption of the digitisation of the energy transition regulates the rollout of smart meters and the rights and obligations arising therefrom. The law provides legal clarity in a dynamic market dominated by young, innovative companies.
The German energy market and energy transition in particular is heavily influenced by direct and indirect subsidies. In 2023, this strong reliance on state funds had unforeseen effects and led to litigation before German and EU courts.
At the end of 2023, a judgment by the Federal Constitutional Court struck down €60bn of legislation intended to promote hydrogen projects and lower electricity prices. According to the court, the financing mechanism through the Climate and Transformation Fund chosen by the legislator violated the constitutionally binding debt brake. In addition, several lawsuits are pending before the same court against the revenue-skimming mechanism for renewable energy plants introduced in late 2022. The claiming parties argue that the revenue-skimming mechanism violates the constitutional principles on state financing. Both developments severely impaired investment security in Germany.
Legal uncertainties also surround the grid connection of renewable energy plants and battery energy storage systems. The competition between several operators for a single connection point has been the basis for an important judgment by the Federal Court of Justice last year. One of the major challenges of the energy transition is therefore for policymakers to provide the necessary stable regulatory framework. This applies in particular to the integration of intermittent renewable energies. One notable development in this regard is the introduction of a capacity market through the long-awaited and recently published Power Plant Strategy – a mechanism that has not been part of Germany’s ‘energy only’ market to date. Finally, one reform that will help the integration and acceptance of renewables is the Federal Network Agency’s proposal to distribute grid fees more equitably, as they are currently distributed regionally, disproportionately burdening customers in windy but sparsely populated northern and eastern Germany.
Currently, we face various challenges when it comes to structuring power purchase agreements (PPAs) for the supply of electrolysers with renewable electricity for the production of green hydrogen. The background to this is the Delegated Regulation, which sets strict requirements for the supply of renewable electricity. Hydrogen can only be considered ‘green’, ie it will count against the EU’s renewable targets, if these requirements are met.
One challenging requirement is that the renewable electricity plant may not have received operating or investment subsidies (Article 5 para 2 lit b of the Delegated Regulation). At present, it is still possible to fall back on exemptions. However, these only apply for a transitional period. Another pitfall is the European Commission’s view on the necessity of the conclusion of a ‘direct’ PPA between the producer and the offtaker (electrolyser). When drafting PPAs, future regulatory changes have to be addressed in order to provide for a stable and long-term contractual relationship.
EU legislation has a major impact on the national legal framework in Germany. One recent example is RED III (Directive (EU) 2023/2413), which is designed to ensure that the EU’s ambitious climate goals are met. RED III increases the target for the share of renewable energy in the EU’s energy consumption to 42.5% by 2030. A new binding sub-target in transport includes a combination of electricity-based renewable fuels (renewable fuels of non-biological origin (RFNBOs)) and advanced biofuels. This sub-target is 5.5%, of which 1% is to be covered by RFNBOs.
Another important milestone in EU legislation is Regulation (EU) 2023/956, which establishes a new EU Carbon Border Adjustment Mechanism (CBAM). By raising the cost of imports of products with carbon-intensive production processes, CBAM aims to help local manufacturers compete. The transitional phase began in 2023. Companies will have to fulfil strict documentation and reporting requirements. From 2026, companies will have to financially compensate for the emissions generated from the production of imported goods.
Looking forward, important trends for the coming years will be the full deployment of flexibility in the German electricity market, technical developments and innovations in the fields of carbon capture and storage (CCS) and carbon capture and utilisation (CCU), and the alignment of energy generation and consumption through further digitalisation and the use of AI.
Regarding flexibility and energy storage, the full implementation of EU legislation on the operation of battery storage systems will accelerate their market entry in the future. The energy storage strategy recently published by the German Ministry of Economic Affairs was a step in the right direction in this regard.
In order to meet its climate targets, it is argued that Germany will inevitably have to rely on CCS and CCU technologies. While the primary focus remains on reducing emissions and transitioning to renewable energy, CCS and CCU are essential to address emissions that are difficult or impossible to avoid. The German government has outlined its intention to create the necessary legal framework to enable the infrastructure for the transport, storage and utilisation of carbon dioxide through the Carbon Management Strategy presented by the Federal Ministry of Economics and Technology.
Finally, the developing digitalisation of the energy industry and the deployment of AI might help to align production and consumption and thereby reduce Germany’s overall energy demand and carbon footprint.
At COP28 last year, all parties acknowledged that renewable and low-carbon hydrogen will be an essential factor in meeting global energy needs while decarbonising industry. With law firms advising clients on green hydrogen projects which seek to replace conventional fuels within heavy transport, thermal power stations, domestic heat grids, and industrial activity, hydrogen has the potential to make a vital contribution toward decarbonising hard-to-electrify processes.
Continue reading “Stepping on the gas – the factors behind the rise of green hydrogen”
What made you decide to become a lawyer and, once you’d made that decision, why energy?
I chose to do law at university as I felt it would be a good base for a future career choice, whether that was law or otherwise. Even the prospect of doing a degree was pretty daunting at first, as the first in a generation to do so. However, I genuinely loved it, particularly all things land law, and it was therefore a natural career choice for me to secure a training contract – which was with TLT!
25 years ago, TLT was involved in financing some of the UK’s first wind projects. It was very early in my career, just after I had finished my training, and I was invited to be involved in those projects. At the time, the sector was very new. Wind was only just starting to be recognised in the UK and I could see its potential. I was excited to be given the opportunity to get involved in the future energy sector from the outset.
What have been your top career highlights?
I’ve been involved in the future energy sector since joining TLT as a trainee so having the opportunity to deliver on my personal and professional passion for sustainability and future energy has been a highlight in itself!
I was also appointed to TLT’s targets taskforce, which is responsible for monitoring progress in diversity. We went on to achieve our firm-wide target of 33% female partners two years early – a fantastic achievement and something I am very proud of.
What has been your proudest professional moment?
Having been part of TLT’s future energy practice since its inception and played a central part in positioning the firm as a leader in the sector; 2023 was a year of accolades. I was delighted to be recognised in The Lawyer Hot 100 list for my outstanding contributions to the industry. I’m incredibly proud to have built this practice in the last 25 years to being one of the most prominent firms in the field.
What has been your biggest professional challenge and what did you learn from it?
In 2017, there was a period when subsidies were being phased out for renewable energy projects which was a particularly challenging time. Ultimately, this resulted in the kick-starting of the battery storage sector, and we found ourselves at the forefront of this emerging industry, working alongside clients in some of the very first battery storage projects and helping to put the legal documentation in place. Although this was a difficult process, we were able to help shape a positive outcome and ensure that solar and wind projects can now be built and operated without subsidies.
What is the best bit about being an energy partner?
As a firm, we pride ourselves in putting our people first. For me the best thing about being an energy partner and sector head for TLT’s future energy practice, is having the opportunity to educate and nurture the next generation of lawyers so that they can support clients bringing innovative and pathfinder projects to market that make a positive contribution to the UK’s sustainability and net zero targets.
Would you recommend a life in energy law to your younger self, and why?
Absolutely, yes. One of the things I enjoy the most about the sector is that, because everything is so new, you’re often involved in first-of-their-kind projects. In addition, there’s never been a more important time to focus on renewable energy generation, green infrastructure and decarbonisation projects. The socio-political climate has highlighted the real need for the UK to step up its game by supporting investment into and the development of these projects. It’s hugely rewarding to be involved in a sector that has the potential to really affect the health and wellbeing of our people and communities.
What advice would you give to those who want to get to where you have?
Be passionate about what you do! If you have a passion in life and have the opportunity to turn it into a career, then look into it. We spend so much time at work, building our careers, it’s important to enjoy it. If you love what you do
then success will follow quickly.
What do you think is the biggest challenge facing your clients right now?
Unless you have both the ability to develop a future energy project and the interest from funders or investors, it will be extremely difficult to get a project off the ground. For the sector to grow and thrive, the sector needs to overcome a number of challenges such as:
And finally – what was your favourite childhood book and why?
Charlie and the Chocolate Factory, by Roald Dahl. I read all of Roald Dahl’s books several times over when I was a child, but this one has always stuck with me, mainly due to the positivity and strength of values that it offers.
Maria Connolly is a partner at TLT.