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The global energy sector has attracted considerable attention over the last few years. Notably, Russia’s invasion of Ukraine forced countries to think about energy security and supply. The European Union’s ‘REPowerEU’ plan was announced soon after, noting that Europe “must become independent from Russian oil, coal and gas… and accelerate the clean energy transition”. These events, alongside the escalating climate crisis and an ever-evolving regulatory outlook, have given new momentum to the energy transition. Technology will play an important role in this process. Energy transition will present countless risks and opportunities, and technology will be at the heart of many of them, revolutionising the electricity grid, advancing carbon capture technology, exploring the use of hydrogen, as well as rolling out electric vehicles and battery packs. Artificial intelligence and other virtual systems will contribute to shaping our energy future.

UNITED STATES

Dentons

“In the US, the jagged geopolitics wrought by Putin’s extreme ‘energy warfare’ and global supply issues have combined with domestic challenges, including serious unresolved siting, permitting and mining reform issues and inadequate infrastructure, to create a new paradigm for the energy sector. Insufficient, antiquated transmission infrastructure and severe interconnection problems impact deployment of traditional and renewable resources needed to support increased demand and address climate concerns. This has played out against a backdrop of other megatrends and disruptions transforming the energy industry and causing us to redefine what we mean when we speak of ‘security’.”

CANADA

Burnet, Duckworth & Palmer, LLP

“There are a number of significant trends in the energy sector in Canada that could be highlighted, but three stand out. The first is the industry’s financial and commercial support for the cleantech sector. The oil & gas sector is the largest investor in Canada’s cleantech sector, responsible for at least 75 percent of the investment dollars the cleantech sector relies on for its funding. The second is the growing commitment of energy companies to economic reconciliation with indigenous communities. Energy companies understand that they must establish meaningful economic partnerships with First Nations groups to advance new energy projects and build the infrastructure required to support energy diversification and transition.”

BRAZIL

Veirano Advogados

“Renewable energy has always been a major source of electricity production in Brazil. It currently represents approximately 87 percent of generation in terms of installed capacity, including distributed generation, with hydroelectricity representing more than half of the total Brazilian installed capacity. In July 2023, thanks to high reservoir levels, clean power generation also accounted for more than 85 percent of total power output. In recent years, the development of greenfield wind and solar projects has also been notable. Wind and solar energy projects represent over 66 percent of all power generation projects currently under construction.”

UNITED KINGDOM

Quinn Emanuel Urquhart & Sullivan UK LLP

“Two of the biggest trends in the energy sector in the UK and, to a similar extent, Europe, concern the supply and pricing shock contributed to by Russia’s invasion of Ukraine and adapting to the ongoing transition to renewable energy. The energy transition has the associated issue of meeting Paris Agreement goals and responding to the generous government subsidies introduced by the US in the second half of 2022 in the Inflation Reduction Act (IRA). The latter has proven to be a game-changer, not only in the US, but also in Europe, as the UK and Europe find their footing in terms of a response that builds upon the strategic push into renewables on this side of the Atlantic.”

FRANCE

Herbert Smith Freehills Paris LLP

“In addition to decarbonisation and the growth of environmental, social and governance (ESG) concerns, the recent rise in energy prices has changed the concept of energy procurement for many consumers. They were used to negotiating their electricity supply like a phone subscription, but are now looking carefully for the best provider, particularly in light of the end of the French Regulated Access to Incumbent Nuclear Electricity (ARENH) mechanism, which is due by the end of 2025. The mechanism saw nuclear electricity sold to EDF competitors at €42 per MWh.”

ITALY

Herbert Smith Freehills Studio Legale

“The main trend that should be highlighted is the marked acceleration in the transition to renewables. In line with wider European policies, the Italian government has set bold targets for renewables – 30 percent in total energy consumption and 55 percent in electricity generation by 2030 – and has also taken initial steps to overcome the long permitting procedures that have so far hindered the installation of new renewable projects. This acceleration has been boosted by the war in Ukraine and the consequential threat to the security of energy supply.”

AUSTRALIA

Norton Rose Fulbright Australia

“The last year has seen the energy transition gather momentum and breadth. The momentum comes from an ever-increasing number of new energy projects coming online and a yet larger number of proposed projects replenishing the pipeline. The breadth is seen in the widening range of projects – traditional wind and solar projects are increasingly augmented by battery energy storage systems (BESS) of various stripes, by carbon capture and storage (CCS) projects now finally under commercial development and by a rapidly growing hydrogen economy. This growing momentum has been a multi-year trend and in that sense is more of the same.”

CONTRIBUTORS

Burnet, Duckworth & Palmer, LLP

Dentons

Herbert Smith Freehills Paris LLP

Herbert Smith Freehills Studio Legale

Norton Rose Fulbright Australia

Quinn Emanuel Urquhart & Sullivan UK LLP

Veirano Advogados