Renewable Energy 2021
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Renewable Energy 2021 A practical cross-border insight into renewable energy law First Edition Featuring contributions from: Bracewell (UK) LLP Gómez-Acebo & Pombo Abogados POSSER SPIETH WOLFERS & PARTNERS Cliffe Dekker Hofmeyr Inc (CDH) Gonzalez Calvillo The Law Firm of Wael A. Alissa in Dentons & Co. Jones Day association with Dentons & Co. Doulah & Doulah Mazghouny & Co UMBRA – Strategic Legal Solutions DS Avocats Nishimura & Asahi Wintertons European Investment Bank Pillsbury Winthrop Shaw Pittman LLP Table of Contents Expert Chapters Renewable Energy Fuelling a Green Recovery 1 Mhairi Main Garcia, Dentons & Co. Trends and Developments in the European Renewable Energy Sector 5 from a Public Promotional Banking Perspective Roland Schulze & Matthias Löwenbourg-Brzezinski, European Investment Bank Q&A Chapters Australia Saudi Arabia 11 Jones Day: Darren Murphy, Adam Conway & 76 The Law Firm of Wael A. Alissa in association with Prudence Smith Dentons & Co.: Mahmoud Abdel-Baky & Mhairi Main Garcia Bangladesh 19 Doulah & Doulah: A.B.M. Nasirud Doulah & South Africa Dr. Amina Khatoon 83 Cliffe Dekker Hofmeyr Inc (CDH): Jay Govender, Emma Dempster, Tessa Brewis & Alecia Pienaar Egypt 26 Mazghouny & Co: Donia El-Mazghouny Spain 91 Gómez-Acebo & Pombo Abogados: Luis Gil Bueno & Ignacio Soria Petit France 33 DS Avocats: Véronique Fröding & Stéphane Gasne United Arab Emirates 99 Dentons & Co.: Mhairi Main Garcia & Germany Stephanie Hawes 41 POSSER SPIETH WOLFERS & PARTNERS: Dr. Wolf Friedrich Spieth, Niclas Hellermann, Sebastian Lutz-Bachmann & Jakob von Nordheim United Kingdom 109 Bracewell (UK) LLP: Oliver Irwin, Kirsty Delaney, Nicholas Neuberger & Robert Meade Indonesia 48 UMBRA – Strategic Legal Solutions: Kirana D. Sastrawijaya, Amelia Rohana Sonang, USA Melati Siregar & Junianto James Losari 117 Pillsbury Winthrop Shaw Pittman LLP: Mona E. Dajani Japan 56 Nishimura & Asahi: Sadayuki Matsudaira Zimbabwe 121 Wintertons: Nikita Madya Mexico 62 Gonzalez Calvillo: Jorge Cervantes, Hernando Becerra & Pedro Lladó Camarillo Oman 70 Dentons & Co., Oman Branch: Mhairi Main Garcia & Yasser Taqi Chapter 6 33 France France Véronique Fröding DS Avocats Stéphane Gasne 1 Overview of the Renewable Energy and territorial balance (SRADDET) and the Local Climate Air Energy Plans (PCAET), regions and inter-municipal authori- Sector ties are invited to define their energy mix evolution until 2050, taking into account the objectives of the PPE, and to commit to 1.1 What is the basis of renewable energy policy and short-term actions to achieve it. regulation in your jurisdiction and is there a statutory The implementation of the French renewable energy policy definition of ‘renewable energy’, ‘clean energy’ or is also driven by the Environment and Energy Management equivalent terminology? Agency (ADEME), which is a public agency reporting to the MTE. The ADEME acts both upstream of the value chain Renewable Energy is mainly regulated by the Energy Code, as (support for research programmes) and downstream (support well as by the Environmental Code, the Town Planning Code for the roll-out phase). and the General Code on Public Property. France must comply with the “Clean energy for all Europeans” package, which Regulatory bodies consists of four directives and three regulations adopted in May The Energy Regulatory Commission (CRE) is an independent 2018, December 2018 and June 2019. public body regulating French energy markets, including energy The basis of the French renewable energy policy is the fulfill- derived from renewable sources. ment of the Multiannual Energy Program (PPE), a binding The French Competition Authority (FCA) is an inde- operational tool for public authorities created by the 2015 Law pendent public body in charge of supervising anti-competitive No. 2015-992 on energy transition and green growth (LTECV). practices and controlling mergers in any economic sector, This law sets out ambitious national energy objectives, which including energy. were adjusted by the 2019 Law No. 2019-1147 on Energy and Climate (LEC). Transmission and distribution The purpose of the PPE, which was last amended by Decree Transmission and distribution are public service activities super- No. 2020-456 of 21 April 2020, is to map out the French vised by the CRE. Government’s course of action regarding energy in the next Réseau de Transport d’Electricité (RTE), the only power 10 years, with the objective of making France a carbon neutral transmission system operator in France, is responsible for trans- country by 2050. The PPE covers two five-year periods, 2019– porting electricity to customers on behalf of suppliers and devel- 2023 and 2024–2028, with a key target to attain 50% renewable oping the networks. energy by 2035. Enedis is the main distribution network operator for France. The PPE applies to mainland France and the so-called non- Most of the renewable energy installations are connected to the interconnected zones (ZNI), which include Corsica and over- Enedis network. The rest are managed by local distribution seas territories. companies (ELD). The ZNIs, including overseas territories Although there is no statutory definition of renewable or clean (except Mayotte) and Corsica, benefit from a special distribu- energy in France, Article L 211-2 of the Energy Code states that tion network provided by EDF SEI. In Mayotte, Electricité de “renewable energ y sources include wind, solar, geothermal, aerothermal, Mayotte (EDM) controls energy production and distribution. hydrothermal, marine and hydropower”. Developers and producers 1.2 Describe the main participants in the renewable The main green energy developers and producers in France and energy sector and the roles which they each perform. French overseas territories are EDF EN, ENGIE and TOTAL QUADRAN. Other key players are French and foreign compa- nies such as Akuo Energy, Axpo, Baywa, Boralex, CNR, EDP The key governmental institution is the Ministry for the Renovaveis, EnBW (Valeco), NEOEN, RES, RWE, Valorem, Ecological Transition (MTE), supported by the Directorate Vattenfall or Voltalia. General of Energy and Climate (DGEC). The MTE is repre- sented in each region by Regional Directorates for Environment, Trading platforms and aggregators Planning and Housing (DREAL), which aim to promote With the introduction of the direct marketing scheme, EDF as sustainable economic development at the regional level. well as actors of the wholesale market, namely trading platforms The local authorities are in charge of turning the national (Epex Spot and Nord Pool for spot transactions and EEX for objectives into concrete action and taking various local actions. derivatives) and aggregators (Agregia, ENGIE, Gazel Energie Through the regional schemes for spatial planning, sustainable Renewable Energy 2021 © Published and reproduced with kind permission by Global Legal Group Ltd, London 34 France (previously Uniper), Statkraft, Vattenfall, etc.), are the main The size of wind and solar projects is increasing following participants in the purchase and sale market. The risk manage- technological improvements and the removal of several regu- ment is in particular delegated to aggregators. latory pressures. The offshore deployment of wind projects as well as repowering will also contribute to increasing the installed Renewable energy suppliers capacity. Apart from EDF, various alternative suppliers provide energy from renewable sources such as Total Direct Energie, ekWateur, 2.2 What role does the energy transition have in the Enercoop, ilek or Planete Oui. level of commitment to, and investment in, renewables? What are the main drivers for change? Other participants Various non-profit associations are also playing a key role in the The PPE aims to increase the share of renewable energy and to promotion of renewable energy, such as the Renewable Energy reduce nuclear power from 75% to 50% by 2035. Technological Association (SER), the Wind Energy association (FEE), improvements have contributed to making solar and wind power the Solar Association (Enerplan), the Network for Energy installations more competitive compared to nuclear energy. The Transition (CLER) and the French German Office for Energy National Low-Carbon Strategy (SNBC) also aims at reducing Transition (OFATE). greenhouse gas emissions and diversifying the energy mix in order to ensure security of supply and reduce dependence on 1.3 Describe the government’s role in the ownership imports. and development of renewable energy and any policy commitments towards renewable energy, including applicable renewable energy targets. 2.3 What role, if any, has civil society played in the promotion of renewable energy? The PPE plays a crucial role in the development of renew- able energy. Its implementation decrees set objectives for the The PPE and SNBC have been subject to a prior consultation launching of calls for tenders to be achieved by 2023 and 2028: process, including a public debate organised by the National ■ For solar energy: 20.1GW for 2023; and 35.1 to 44GW for Commission for Public Debate (CNPD). Public debates are 2028. also launched for offshore wind projects. ■ For onshore wind energy: 24.1GW for 2023; and 33.2 to The citizen involvement in the energy transition is encouraged 34.7GW for 2028. by crowdfunding. Several platforms (such as Lumo, Enerfip, ■ For offshore wind energy (including floating offshore ENGIE Green, Lendopolis, etc.) are collecting funds for the wind): 2.4GW for 2023; and 5.2 to 6.2GW for 2028. financing of renewable energy