Power offtake arrangements In project financed power generation projects, one of the key documents is the power offtake agreement. Typically referred to as a 'power purchase agreement' or PPA, this is commonly a contract between the generator and a licensed electricity supplier acting as offtaker for the whole of the plant’s output. PPAs of this type are commonly on the licensed supplier’s standard terms, which will be familiar to most funders. For our key resources on PPAs, see: Power purchase agreements and routes to market—overview. These PPAs are offtaker-friendly and it is generally difficult to negotiate significant changes. Another form of power offtake arrangement is where the generator is directly connected to one or more local customers via a ‘private wire’ and these customers buy their power directly from the power station. In general, ‘private wires’ refers to electricity distribution systems not owned or operated by a distribution network operator (DNO) licensed under the section 6 of the Electricity Act 1989 (EA 1989). (For ease, post-liberalisation

Status of EU directives following Brexit Retained EU law (‘REUL’) is a legal concept describing EU-derived rights and legislation preserved by the UK following Brexit. It is a defined term under the European Union (Withdrawal) Act 2018 (EU(W)A 2018), and the collective term given to the body of EU-derived laws the UK preserved and converted into domestic UK law, effective on the repeal of the European Communities Act 1972. Assimilated law is the name given to REUL which remains in force from 1 January 2024 pursuant to the Retained EU Law (Revocation and Reform) Act 2023. The re-categorisation of REUL (and associated terms) to assimilated law reflects a change in its status and treatment under UK law, in that it is generally to be interpreted according to ordinary domestic law and principles. From 1 January 2024, REUL is ‘assimilated’ into domestic law by virtue of the fact it is generally stripped of EU-derived interpretive effects (eg supremacy of EU law, directly effective rights, and general principles previously

Increasing generation capacity from intermittent renewable energy sources poses technical issues for the UK electrical grid. Grid capacity is typically sized to match peak output from generators which are distributed around the UK grid. Energy storage has a role to play in managing output from generators and electrical grid control issues. Along with interconnection and demand side response, energy storage is a good means of smoothing peaks and troughs in generation. Storage can also help ease technical constraints such as frequency control, offsetting the need for grid reinforcement. Conventional power generators typically have a single use; to create electricity. Energy storage has a variety of uses, which can be categorised as either ‘behind the meter’ for distributed applications or ‘in front of the meter’, being more power grid orientated. For more information on key legal considerations involved in energy storage projects in Great Britain, see Practice Note: Scaling up energy storage—revenue opportunities in Great Britain. For more information on the regulatory challenges and opportunities for energy storage projects, see also textbook: Energy Storage: Legal

Introduction The advances in energy storage technology, as well as the decreasing cost of the technology, are transforming the energy market on a global scale, making energy storage a hot topic in the industry. This note focuses on UK battery storage projects, in particular, market specific construction issues arising and being discussed when drafting and negotiating the construction contracts for these projects from a developer/funder perspective. For an introduction to energy storage projects more generally, see Practice Notes: Scaling up energy storage: revenue opportunities in Great Britain and Energy storage technologies in the UK. For an introduction to the planning issues associated with energy storage projects, see Practice Note: The planning regime for energy storage in England and Wales. For an introduction to the regulatory and licensing issues associated with energy storage projects, see Practice Note: Energy storage—the evolving regulatory regime and renewable subsidy position. For more information on the regulatory challenges and opportunities for energy storage projects, see also textbook: Energy Storage:

Brexit impact As of 31 January 2020 (exit day), the UK is no longer an EU Member State and entered an implementation period during which it continued to be treated by the EU as a Member State for many purposes. 11 pm (GMT) on 31 December 2020 marked the end of the Brexit transition/implementation period. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements came to an end and significant changes began to take effect across the UK’s legal regime. Any changes relevant to this content are set out below. For information on how leaving the EU has affected Great Britain’s (GB) renewable energy sector, see Practice Note: Energy and Brexit—renewable energy. In addition to this Practice Note, for in-depth analysis of the regulatory challenges and opportunities for energy storage projects, see textbook: Energy Storage: Legal and Regulatory Challenges and Opportunities. How has regulation of energy storage in GB evolved? As set out in Practice Note: Licensing of GB electricity

Law360, London: Mercuria Energy Group secured an expedited October trial on Friday (22 May 2026) in its claim against Baltic Exchange for allegedly failing to factor the essential closing of the Strait of Hormuz into an oil trading benchmark, after Mercuria argued it would affect the entire market.

The US Department of Justice has announced that Vitol Inc (Vitol), the US affiliate of the Vitol group of companies, which together form one of the largest energy trading firms in the world, will pay a criminal penalty of $135m after the company was charged with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act and to resolve a parallel investigation in Brazil. It was found that Vitol paid millions of dollars in bribes to numerous public officials in Brazil, Ecuador and Mexico to obtain ‘improper competitive advantages that resulted in significant illicit profits for the company’. This occurred over a 15-year period. Acting US Attorney of the Eastern District of New York, Seth DuCharme, said: ‘The United States Attorney’s Office for the Eastern District of New York will continue to hold accountable companies and individuals that attempt to defy U.S. law to the detriment of honest competitors.’

Ireland—Commercial analysis: This article, written by Niamh McGovern, Partner, Aaron Boyle, Partner, and Maeve Crockett, Partner, of Arthur Cox LLP, notes that the Terms and Conditions and timetable for the Renewable Electricity Support Scheme 6 (RESS 6) have been published. The article outlines key differences from RESS 5, including a Composite Evaluation Score (CES) comprising a Price Score, Resilience Score, and Energy System Integration Score, two new EU Net-Zero Industry Act (NZIA) compliance milestones embedded in the Implementation Agreement, and an auction timetable running to final results on 2 December 2026.

Ireland—Commercial analysis: This article was written by Niamh McGovern, partner (Energy and Infrastructure), James Downey, senior associate (Energy and Infrastructure), Gillian Carragher, senior associate (Energy and Infrastructure), Maeve Crockett, partner (Construction and Engineering), Katrina Donnelly, of counsel (Energy and Infrastructure) and Alma Kelly, consultant (Construction and Engineering), of Arthur Cox LLP. It examines how operations of data centres and other transmission-connected facilities may be impacted by developments being consulted on by the Commission for Regulation of Utilities (the CRU) until 29 July 2026. It considers the proposed regulatory changes for transmission-connected demand facilities and their potential implications for affected system users.

Ireland-Commercial analysis: This article was written by Niamh McGovern, partner (Energy and Infrastructure), James Downey, senior associate (Energy and Infrastructure), Gillian Carragher, senior associate (Energy and Infrastructure), Katrina Donnelly, of counsel (Energy and Infrastructure), Sarah Barrett, senior associate (Energy and Infrastructure) and Bob Hughes, senior associate (Energy and Infrastructure) of Arthur Cox LLP. It examines the transposition of Directive (EU) 2024/1711 through the European Union (Electricity Market Design) Regulations 2026 (Ireland). It reviews the new framework for flexible grid connection agreements, enhanced information and transparency requirements for distribution system operators, and additional provisions relating to supplier risk management and suppliers of last resort under the reformed EU electricity market design framework.

This week's edition of Energy weekly highlights includes: the government's announcement of a partnership between Great British Energy and the Crown Estate, Ofgem's publication of its decision on whether to retain the ban on acquisition-only tariffs (BAT), along with a consultation on the proposed Regional Energy Strategic Plan (RESP) policy framework, Ofgem's decision to extend the submission for Network Options Assessment (NOA) methodology, the Secretary of State for Energy Security and Net Zero Ed Miliband's meeting with COP leaders to discuss the climate crisis and Ofgem's publication of policy updates to Early Competition in onshore electricity transmission networks.

This week's edition of Energy weekly highlights includes: The Department for Energy Security and Net Zero (DESNZ)’s letter to the National Grid Electricity System Operator (ESO) setting out adjustments to the parameters for the Capacity Market auctions for delivery years 2024–2025 and 2027–2028. This week’s highlights also include Ofgem’s consultation on its proposed approach to implementing the energy industry code governance reforms laid out in the Energy Act 2023 (EnA 2023) and its consultation on its proposed changes to the guidance for the Operational Performance Regime.