Legal strategies for the mitigation of risk for energy infrastructure projects

Rory Connor, Raphael Heffron (Lead / Corresponding author), Ahmed A . Khan, Edward Perkins

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2 Citations (Scopus)
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Abstract

The world continues to recover from the global financial crisis of 2007–2009 and consequently project risk continues to be a key concern for lawyers. This is in particular evident in the energy sector where there is a significant need to finance energy projects. This paper focuses on electricity-generating infrastructure where estimates indicate that a minimum of $10tn in investment is needed by 2040. As lawyers need to play a role in reducing the risk for these projects, this article examines legal strategies for the mitigation of risk for energy infrastructure projects with a focus on electricity projects. The paper assesses risk for project finance in terms of liberalised and non-liberalised electricity markets, and also from a developed and developing world perspective. Further, the paper notes that energy law theory states that the need for energy infrastructure is a key driver of energy law and policy development in the world at the moment. And finally, it is acknowledged that, while project finance has been a research issue for economists for many years, it is time for lawyers to evaluate how they also can mitigate risk for project finance for energy infrastructure projects.

Original languageEnglish
Pages (from-to)47-66
Number of pages21
JournalJournal of Energy and Natural Resources Law
Volume37
Issue number1
Early online date16 Apr 2018
DOIs
Publication statusE-pub ahead of print - 16 Apr 2018

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Keywords

  • electricity projects
  • evolution of energy law
  • liberalised electricity markets
  • market risk
  • project finance

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