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