The following Construction guidance note Produced in partnership with Clarke Willmott LLP provides comprehensive and up to date legal information covering:
The EU enforced a directive with a renewable energy supply target of 20% by 2020 and the UK imposed its own target of 20% renewable output by 2020. This has led to a growing global need for investment in the renewable energy sector.
The government is unlikely to invest further large amounts or increase tariffs during the current funding cuts. There has also been a drastic decrease in the availability of affordable debt from banks. Therefore, new ways must be found to maintain and increase investment into the renewable energy market alongside bank debt.
See Practice Note: Introduction to UK energy projects for construction lawyers
Banks have been forced to look again at their renewable energy portfolio and in some instances have looked to refinance in order to maintain lending. The prominence in renewable or 'eco-bonds' and other alternative funding vehicles is therefore on the increase but all of these require a project that is de-risked as far as that is possible. This practice note examines some of the options.
The requirements for performance security on a project will depend upon the procurement route chosen, parties involved and the funder's requirements.
See Practice Note: EPC, split-EPC and multi-contract projects
Bonds have traditionally been used in the construction industry as a way to reduce and manage the risk of poor performance, insolvency
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