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Renewable Energy 2021 Renewable Energy 2021 Renewable Energy 2021 Energy Renewable Renewable Energy 2021 Contributing editor John Dewar © Law Business Research 2020 Publisher Tom Barnes [email protected] Subscriptions Claire Bagnall Renewable Energy [email protected] Senior business development manager Adam Sargent 2021 [email protected] Published by Law Business Research Ltd Contributing editor Meridian House, 34-35 Farringdon Street London, EC4A 4HL, UK John Dewar The information provided in this publication Milbank LLP is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer– Lexology Getting The Deal Through is delighted to publish the fourth edition of Renewable Energy, client relationship. The publishers and which is available in print and online at www.lexology.com/gtdt. authors accept no responsibility for any Lexology Getting The Deal Through provides international expert analysis in key areas of acts or omissions contained herein. The law, practice and regulation for corporate counsel, cross-border legal practitioners, and company information provided was verified between directors and officers. June and July 2020. Be advised that this is Throughout this edition, and following the unique Lexology Getting The Deal Through format, a developing area. the same key questions are answered by leading practitioners in each of the jurisdictions featured. Our coverage this year includes new chapters on Italy and Poland. © Law Business Research Ltd 2020 Lexology Getting The Deal Through titles are published annually in print. Please ensure you No photocopying without a CLA licence. are referring to the latest edition or to the online version at www.lexology.com/gtdt. First published 2017 Every effort has been made to cover all matters of concern to readers. However, specific Fourth edition legal advice should always be sought from experienced local advisers. ISBN 978-1-83862-396-8 Lexology Getting The Deal Through gratefully acknowledges the efforts of all the contribu- tors to this volume, who were chosen for their recognised expertise. We also extend special Printed and distributed by thanks to the contributing editor, John Dewar of Milbank LLP, for his continued assistance with Encompass Print Solutions this volume. Tel: 0844 2480 112 London July 2020 Reproduced with permission from Law Business Research Ltd This article was first published in July 2020 For further information please contact [email protected] www.lexology.com/gtdt 1 © Law Business Research 2020 Contents Global overview 3 Nigeria 47 John Dewar and Chris Taufatofua Donald Ibebuike and Joseph O Amadi Milbank LLP Foundation Chambers Egypt 7 Poland 54 Donia El-Mazghouny Paweł Magierowski and Robert Ryszard Broom Shahid Law Firm Squire Patton Boggs Germany 12 Spain 61 Christine Bader and F Maximilian Boemke Alberto Artés and Gonzalo Olivera Watson Farley & Williams King & Wood Mallesons India 19 Taiwan 70 Dibyanshu, Prateek Bhandari and Prashant Singh Grace Chih-Wen Chou and Sean Yu-Shao Liu Khaitan & Co Lee Tsai & Partners Iran 27 Tanzania 77 Behnam Khatami, Amir Mirtaheri, Masoomeh Salimi, Niloofar Massihi Clara Mramba, Nicholas Zervos and Seif Ngalinda and Farzaneh Montakhab Velma Law Sabeti & Khatami Ukraine 84 Italy 33 Igor Dykunskyy and Yaroslav Anikeev Pietro Cavasola and Matteo Ciminelli DLF Attorneys-at-law CMS Italy United Kingdom 95 Japan 41 John Dewar and Seyda Duman Norio Maeda, Amane Kawamoto, Hudson Hamilton and Boram Kim Milbank LLP Nishimura & Asahi United States 104 Henry T Scott, Karen B Wong and Huanbo Zeng Milbank LLP 2 Renewable Energy 2021 © Law Business Research 2020 United Kingdom John Dewar and Seyda Duman Milbank LLP MARKET FRAMEWORK renewable energy such as the feed-in tariff (FIT), Contracts for Difference (CfD), the Renewables Obligation (RO) scheme, Domestic Renewable Government electricity participants Heat Incentive (RHI), Non-Domestic RHI, the Climate Change Levy, the 1 Who are the principal government participants in the Renewable Energy Guarantees of Origin scheme and the Offtaker of Last electricity sector? What roles do they perform in relation to Resort (OLR) scheme. renewable energy? Competition and Markets Authority Ministerial departments The Competition and Markets Authority was established in April 2014 The Department of Energy and Climate Change (DECC), formed in under the Enterprise and Regulatory Reform Act 2013. It is an inde- 2008, was the ministerial department responsible for making decisions, pendent non-ministerial department which brought together the setting policy and implementing legislation affecting the electricity existing competition and certain consumer protection functions of sector. The corresponding government ministry in Northern Ireland is the Office of Fair Trading and the responsibilities of the Competition the Department of Enterprise, Trade and Investment. Following the EU Commission to promote competition for the benefit of consumers within Referendum held on 23 June 2016, DECC was merged together with the and outside the UK. Department for Business and Innovation to create the Department for Business, Energy and Industrial Strategy (BEIS). The Environment Agency The Environment Agency is responsible for protecting and improving Independent bodies the environment as well as promoting sustainable development. The BEIS works closely with and is supported by other agencies and public role of the Environment Agency regarding electricity is limited to bodies, including matters related to pollution and therefore mainly relates to conven- tional generation and nuclear energy. Gas and Electricity Markets Authority and Ofgem. The Gas and Electricity Markets Authority (GEMA) has primary responsi- Private electricity participants bility for regulation of the energy sector. GEMA’s powers and duties are 2 Who are the principal private participants in the electricity largely provided for in statute (such as the Gas Act 1986, the Electricity sector? What roles do they serve in relation to renewable Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise energy? Act 2002 and the Energy Acts of 2004, 2008, 2010 and 2011) as well as arising from directly effective European Community legislation. Generation GEMA’s principal objective is to protect the interests of existing and Following the privatisation of the generation industry during the future consumers in relation to gas conveyed through pipes and elec- 1990s, there has been an increasing number of generating companies tricity conveyed by distribution or transmission systems. The interests in Great Britain. These are made up of what is known as the ‘Big Six’ of such consumers are their interests taken as a whole, including their – British Gas, e.on, EDF, npower, Scottish Power and SSE – and an ever- interests in the reduction of greenhouse gases in the security of the increasing number of smaller suppliers (approximately 70 as of June supply of gas and electricity to them. 2019). Renewable energy makes up more than 20 per cent of the UK’s GEMA is constituted of individuals who are appointed by the electricity and under the current EU targets this is likely to increase to Secretary of State for specified terms of not less than five years. GEMA 30 per cent by 2020; it is not yet known whether the Brexit process and is independent and has very limited stakeholder participation (such withdrawal from the EU will result in a change in this target. as the Secretary of State’s ability to remove members on the grounds of misbehaviour, determine the remuneration of members and give Transmission guidance). National Grid Electricity Transmission (NGET) is the licensed national GEMA delegates its functions to the Office of Gas and Electricity electricity transmission system operator for Great Britain. Ownership of Markets (Ofgem) and provides Ofgem with strategic direction and over- the transmission assets is divided as follows: sight. Ofgem is also a non-ministerial government department and an • NGET owns the transmission network in England and Wales; independent National Regulatory Authority recognised by EU Directives. • Scottish Hydro Electric Transmission owns northern Scottish Ofgem states that its principal objective is to protect the interests of transmission assets; existing and future electricity and gas consumers. • Scottish Power Transmission (Southern Scotland) owns central Ofgem E-Serve, which introduces itself as the ‘delivery arm of and southern Scotland transmission assets; and Ofgem’, administers environmental schemes and consumer and social programmes on behalf of the government, including schemes related to www.lexology.com/gtdt 95 © Law Business Research 2020 United Kingdom Milbank LLP • Northern Ireland Electricity owns the transmission network in • renewables obligation certificates: the Energy Act 2013 introduced Northern Ireland where the System Operator Northern Ireland is new sections to the Electricity Act 1989 to provide for the Secretary licensed as the transmission system operator. of State to make an order that imposes an obligation on Ofgem, the Secretary of State or a CfD counterparty to purchase the replace- As the UK is well placed to take advantage of wind power, Ofgem ment for the renewables obligation certificates (ROCs) called together with DECC identified both onshore and offshore wind farms ‘certificate
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