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For more practical, step-by-step guidance on solar projects, including viewpoints from several jurisdictions, consult the textbook also: Solar Power: A Practical Handbook. Negotiating a rooftop lease for solar PV panels When arranging a rooftop lease for solar PV panels, the matters at stake will differ according to the interests of the party you represent. Those issues shift depending upon whether one acts for the landlord, the occupier, or the solar tenant. Here, 'landlord' describes the owner of the freehold or a long lease of the relevant building; 'occupier' means the party in occupation; and 'solar tenant' is the entity proposing to install and own the panels. The solar tenant may equally be the building’s occupier, or could be a dedicated solar developer. A growing number of landlords are fitting solar panels to their properties—either via the same corporate vehicle that holds the building, or through a related solar company. This note addresses rooftop leases and, accordingly, assumes a structure in which the solar tenant is a distinct legal...
Renewable heat incentive (RHI) The RHI, applicable across Great Britain, was a government-backed programme offering financial support to encourage the use of renewable heat and biomethane, but it stopped accepting new applications from 31 March 2022. These incentives aimed to tackle barriers to uptake, notably high up-front costs and ongoing operating expenses. The scheme ran in two phases: Phase 1 launched in November 2011 for non-domestic installations in the industrial, commercial and public sectors. The non-domestic RHI closed to new applicants on 31 March 2021. Phase 2 covered the domestic RHI (formerly under the Renewable Heat Premium Payment), introduced in April 2014. The domestic RHI closed to new applicants on 31 March 2022. While both the non-domestic and domestic schemes are now closed to fresh applicants, those accredited before closure may continue receiving payments under the scheme. The non-domestic RHI was initially established under the Renewable Heat Incentive Scheme Regulations 2011 (2011 Regulations), SI 2011/2860...
During any due diligence, a purchaser should establish whether an energy performance certificate (EPC) and a recommendation report are required, and then confirm that a valid EPC has been provided. In a multi-let building, several EPCs may be needed for different parts of the property. An EPC allows the buyer to assess the building’s energy efficiency. It sets out a rating that can be benchmarked against the average for comparable stock. A poor score may negatively affect the property’s value. A recommendation report must accompany the EPC unless there is no reasonable potential to improve performance against the energy standards currently in force. However, owners are not legally obliged to follow the recommendations. See our Overviews: Energy performance certificates and minimum energy efficiency requirements (MEES)—overview and Energy and renewable apparatus in buildings—overview, and our Practice Notes: Energy performance certificates (EPCs)—what are they and when are they required? and Energy performance certificates (EPCs)—issues for commercial landlords and tenants. Do the Energy Performance of Buildings (England and Wales) Regulations...
Mergers Court of Justice dismisses appeals by German energy utility companies regarding Commission’s decision to approve the acquisition by E.ON of the distribution and retail energy business as well as certain general assets of Innogy The Court of Justice has handed down its judgments in joined appeals C-171/24 P, C-172/24 P, C-173/24 P, C-174/24 P, C-175/24 P, C-176/24 P, C-177/24 P, C-178/24 P, and C-179/24 P, brought by German energy utilities against the Commission. These challenges targeted the General Court’s rulings that had rejected actions seeking annulment of the Commission’s decision conditionally authorising a related transaction involving E.ON and RWE’s assets. Each appeal was dismissed by the Court of Justice. The nine appeals concerned the General Court’s judgments in cases T-53/21, T-55/21, T-56/21, T-58/21, T-59/21, T-61/21, T-62/21, T-64/21, and T-53/21, which upheld the Commission’s 17 September 20219 decision conditionally clearing the acquisition by RWE of E.ON’s renewable and nuclear electricity generation assets (M.8870). The Court of Justice dismissed all nine appeals. Background RWE and E.ON are...
Mergers The Commission has authorised Gala Investment SAS and ICG plc to take joint control of Magellan Partners (M.12095) following a phase I investigation—see further, Midday Express The Commission has received an official notification for Banca CF+/Banca Sistema (M.12102) under the simplified merger procedure NOTE—For all current merger investigations before the Commission, see further, EU mergers—ongoing cases tracker State aid Applying EU State aid rules, the Commission has approved an amendment to a German renewable energy scheme first approved in December 2022, increasing the budget for the biomass and biogas support scheme by €7.9bn—see further, Midday Express NOTE—For all active State aid decisions and ongoing formal State aid investigations, see further, EU State aid decisions—ongoing cases tracker Upcoming dates For the full timetable of forthcoming EU competition developments, see further, EU Competition calendar...
In this issue: Key developments and materials Electricity and gas market regulation, licensing and taxation Networks and network connections Renewable energy Air emissions, efficiency, and climate change New and updated content Dates for your diary Trackers Energy resources on Lexis+® Daily and weekly news alerts Key developments and materials Ofgem consults on draft second preliminary Strategic Direction Statement for industry codes Ofgem has opened a consultation on SDS-2 for energy industry codes, outlining its strategic reading of government policy and sector shifts that could drive code changes over the next one to five years. It is seeking input on the proposed policy themes, how they are allocated across the ‘Act now’, ‘Think and plan’ and ‘Listen and wait’ horizons, and whether any significant topics are missing. Ofgem also asks for views on its plan to move SDS-2 from a preliminary document to a hybrid Strategic Direction Statement following the anticipated designation of the...
Scope This Practice Note reviews the technical, environmental and economic aspects of biomass heating. For information on biomass combined heat and power, see Practice Note: Combined heat and power—technology. What is biomass heating? Biomass heating involves burning organic, non-fossil materials to produce heat. In principle, a range of fuels can be used, including: animal dung domestic and industrial waste biodiesel wood Biomass heating is viewed as very low carbon and forms a significant element of the UK’s plans to reduce carbon emissions. This note concentrates on technologies at commercial scale commonly adopted in the UK that use biomass as wood chips or pellets, although much of the detail is also relevant to domestic situations. Wood chips and pellets are two prevalent biomass fuels. Wood pellets are produced from sawdust, compressed into short cylinders, and offer greater uniformity than wood chips. Pellets are denser, more compact and simpler to manage. A further key advantage is their higher energy...
ARCHIVED: This Practice Note has been archived and is not maintained. How are contracts for difference (CfD) and the renewables obligation (RO) connected? The renewables obligation (RO) is designed to stimulate investment in renewable generation. It achieves this by placing a duty on customer-facing electricity suppliers—who obtain electricity from generators, whether directly or indirectly—to procure an ever-increasing share of their wholesale supply from renewable sources. The Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS) determines the proportion required each period. Suppliers prove compliance by submitting renewable obligation certificates (ROCs) to the Office of Gas and Electricity Markets (Ofgem). New ROCs are issued solely to accredited renewable generators, encouraging suppliers to purchase renewable output (together with separately priced ROCs) from such projects, thereby delivering a degree of financial support to those developments. For further details, see Practice Note: Renewables Obligation (RO)—accreditation of renewable electricity generators [Archived]. On 31 March 2017, the RO closed to most categories of new generation. The RO will continue to...
This Practice Note outlines how the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES Regs 2015), SI 2015/962, affect both landlords and tenants of non-domestic private rented (NDPR) property. It explores the interface between the MEES Regs 2015, SI 2015/962 and the Landlord and Tenant Act 1954 (LTA 1954), considers challenges for landlords and tenants when subletting NDPR premises that are substandard, examines points arising for a landlord with a consent exemption on assignment, highlights due diligence considerations, and flags issues in real estate finance transactions where the asset is substandard (that is, holds an energy performance certificate (EPC) rating of ‘F’ or ‘G’). It forms part of our Practical Notes series on minimum energy efficiency standards (MEES). Under MEES Regs 2015, SI 2015/962, reg 27, a landlord must not let substandard NDPR property unless: 'relevant energy efficiency improvements' have been carried out (MEES Regs 2015, SI 2015/962, reg 29); or an exemption applies (consent, devaluation or temporary exemptions). ...
Lease provisions and clauses Better Buildings Partnership The Better Buildings Partnership (BBP) has produced template green lease clauses that span a wide range of topics, including: Definitions Co-operation obligations Building management groups Social impact Sustainable use Data sharing and metering Smart buildings Extending the landlord’s rights to carry out works Restricting the landlord’s right to undertake works that could diminish environmental performance Changes to the tenant’s ability to make alterations Energy Performance Certificates (EPCs) Reinstatement of tenant’s alterations Rent review Circular economy principles for landlord and tenant works Standards Renewable energy Dispute resolution For more, see BBP: Better Buildings Partnership—Green lease toolkit and Practice Note: Green leases—BPP toolkit—the model green lease clauses...
For more hands-on guidance on solar schemes, drawing on perspectives across several jurisdictions, consult the textbook Solar Power: A Practical Handbook. For similarly practical direction on core legal issues within the wind industry, refer to the textbook Wind: Projects and Transactions. PROJECT DETAILS PROJECT NAME: [ insert name of project ] CLIENT: [ insert name of client ] [ Insert name of firm ] PROJECT LEAD: [ insert name of client/lead partner ] PROJECT PARTIES PROJECT PARTY DETAILS Account Bank(s): [ insert name of Account Bank ] (Company Registration No. [ insert number ]) with its registered office at [ insert registered office of Account Bank ] Agent: [ insert name of Agent ] (Company Registration No. [ insert number ]) having its registered office at [ insert registered office of Agent ] Architect: [ insert name of Architect ] (Company Registration No. [ insert number ]) whose registered office is at [ insert...
Precedent transparent sourcing of greener, fairer renewable energy clause This Precedent clause on transparent sourcing for greener, fairer renewable energy requires stakeholders within renewable energy technology supply chains to cut carbon emissions, lessen environmental impact, and put protections in place against modern slavery. Developed by The Chancery Lane Project (TCLP) as ‘Ayshe’s clause’, it is signposted on TCLP’s website below and remains accessible through that link. For in-depth guidance on transparent sourcing in renewable energy, please consult the clause supplied directly by TCLP. TCLP is the codename for a focused, collaborative effort by lawyers from around the world to create new contracts and model laws that help tackle climate change. For further details, visit: chancerylaneproject.org. Lexis+® is proud to support TCLP’s work...
Is an EPC required on lease renewal for a domestic property? An Energy Performance Certificate (EPC) assigns a dwelling an energy efficiency band from A (most efficient) to G (least efficient). The rating comes from a detailed calculation that considers multiple elements, including the property’s age and type, how it is built, and its insulation and heating systems. The Energy Performance of Buildings (England and Wales) Regulations 2012 (EPB Regs 2012), SI 2012/3118, reg 6, provide, subject to specified exemptions, that an EPC must be made available to a tenant when a building is let. This requirement took effect on 9 January 2013. Despite EPB Regs 2012, SI 2012/3118, reg 6, current Government guidance on Energy Performance Certificates for the marketing, sale and let of dwellings states that an EPC is not needed for a lease renewal or an extension. That said, where the renewal is an assured shorthold tenancy (AST) granted after 1 October 2015, the landlord must have supplied the tenant with an EPC before...
An Energy Performance Certificate (EPC) An EPC assesses how energy efficient a building is, scoring it from A to G, with A representing the greatest efficiency. It is illegal for a landlord to let a commercial property with an F or G efficiency rating unless a valid exemption is in place. A landlord must hold an EPC in these situations: when renting out or selling the premises; when a building that was under construction is completed; or when changing the number of areas intended for separate occupation and this includes providing heating, air conditioning or ventilation systems. An EPC is valid for ten years. Certain exemptions apply, including both short and long tenancies...
The Energy Performance of Buildings (England and Wales) Regulations 2012 (EPC Regulations), SI 2012/3118 The Energy Performance of Buildings (England and Wales) Regulations 2012 (EPC Regulations), SI 2012/3118 have applied since 9 January 2013. They place specific duties on owners of buildings they plan to sell or let to third parties. They implement Directive 2010/31/EU of the European Parliament and of the Council dated 19 May 2010 on the energy performance of buildings. It is useful first to consider what is meant by a building under the EPC Regulations, SI 2012/3118. Under reg 2(1), a building is a roofed structure with walls where energy is used to regulate the indoor climate, and this will generally also cover a building unit within that building. The same regulation provides that a building unit is a section, storey or apartment within a building designed or adapted for separate use. It follows that the term extends to any building fitted with some form of heating or air-cooling plant that consumes energy. In addition,...