Bracewell (UK) LLP
4 Experts
3 Contributions by Bracewell (UK) LLP Experts
PRACTICE NOTES
An increasing cohort of developers is reporting that co-located battery storage schemes have secured project finance. This marks significant progress, given that as recently as 2018 grid-scale batteries were treated as an emerging asset class, with many funders having written them off as unsuitable for project finance.
This Practice Note sets out key considerations for both lenders and developers looking to project finance co-located battery storage projects.
For more information on:
construction considerations for co-located battery storage projects, see Practice Note: Energy storage—construction issues
property aspects regarding co-located battery storage projects, see Practice Note: Battery storage projects—property issues
planning matters, including in relation to co-located battery storage, see Practice Note: The planning regime for energy storage in England and Wales
battery storage projects more broadly, see Practice Notes: Scaling up energy storage—revenue opportunities in Great Britain and Energy storage
Energy
PRACTICE NOTES
What are knock-for-knock indemnities?
A knock-for-knock clause sets out a mutual arrangement under which contracting parties divide responsibility for specified losses—typically injury or death of personnel and damage to property—backed by mutual indemnities. In place of the usual fault-based rules that would apply at law, the approach adopts the notion that loss remains with the party on whom it falls. This risk allocation device is widely utilised in the offshore oil and gas sector to create certainty and to avoid recourse against other participants. Its use is increasingly seen across other complex offshore energy projects, such as offshore wind projects.
What are the key features of a knock-for-knock clause?
As a general rule, these clauses preserve the position that any harm to personnel or damage to property suffered by a party’s defined ‘group’ must be borne by that party, regardless of fault. The relevant ‘group’ can be
Energy
PRACTICE NOTES
Upstream oil and gas ventures established under a licence to explore, develop and/or produce hydrocarbons are typically assembled through multiple contracts, many of which feature arbitration clauses. Such ventures require substantial capital and give rise to long-term projects (and therefore long-running contracts) in which states and businesses hold major stakes. As a result, when disputes arise, mirroring the scale of the investments, they often involve significant amounts and must proceed swiftly to prevent any interruption to production.
This Practice Note sets out a typical project architecture, flags the principal contracts, the usual dispute resolution mechanisms they include, and the categories of disputes that may emerge. It also touches on some of the more difficult issues that can arise when resolving these disputes. This Practice Note should be read alongside Practice Note: Arbitration in the energy
Arbitration
If you expected to see yourself on this page, click here.
