26 June 2024 • 14 minute read

European Energy Transition Summit 2024

Empowering change and advancing the energy transition

HIGHLIGHTS

On 26 June 2024, DLA Piper hosted the European Energy Transition Summit that brought together industry leaders, investors, and policymakers to discuss the future of clean energy in Europe. Here are five key takeaways from the multiple sessions related to regional trends, technological innovations, and investment strategies crucial for the energy transition.

Summaries and key takeaways

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The Summit kicked off with a session dedicated to the investment opportunities in the European energy transition. Panelists discussed the volatility in European renewables deal-making, emphasizing the need for effective management and control over materials and supply chains. The integration of wind and solar projects was mentioned as particularly beneficial, especially for corporate power purchase agreements (PPAs). The speakers also stressed the importance of framework agreements and IPPs to navigate the evolving market.

During the second session of the summit, the topic of financing the energy transition was revisited with a discussion of strategies for funding the transition. The panelists pointed out that the most effective financial structures, such as platform financing, are highly adaptable and can be expanded and modified as required. Bridge financing has gained popularity recently as a means of providing flexibility. However, standardizing these structures to make them easily replicable may result in a loss of the customization needed to tailor each structure to the specific requirements of individual projects.

The energy transition in Europe is confronted by numerous challenges. From a financial standpoint, the absence of a uniform financing structure for energy projects requires adaptability to accommodate the unique demands of each project. At the regional level, many countries are facing challenges related to grid connections and uncertain regulatory frameworks. Technological challenges are further compounded by the aging of Europe's onshore wind farms, which give rise to complications with landlord agreements, protracted planning permission processes, and delays in grid connections. During the session on hydrogen, the participants discussed the challenges of financing and regulation of low carbon hydrogen projects. The novelty and lack of proven track record of the technology have prompted a cautious approach to investment.

Additionally, concerns were raised about the adequacy of UK incentives for blue hydrogen, which is reliant on fossil fuels. Attendees emphasized the importance of assessing renewable products based on their environmental benefits, rather than focusing solely on price, although cost remains a significant consideration for offtakers.

Our European Energy Transition Summit included engaging discussions about regional trends and developments:

Germany

Germany achieved its 2023 solar PV target of 9 GW, reaching a total of 14.3 GW, and aims for 215 GW by 2030, despite facing grid connection issues and investment barriers.
In 2023, wind energy contributed 22% to electricity generation, with a 23.6% increase in capacity in early 2024, but development is hindered by land limitations and lengthy approval processes for projects.

Nordics

It is essential to establish strategic partnerships and investigate innovative technologies such as e-fuels and hydrogen to achieve success in this market.
It is also crucial to acknowledge that each Nordic country has its strength and challenges: Sweden is at the forefront of onshore wind energy, Finland boasts a robust grid with significant power-to-X potential, and Denmark excels in offshore wind capabilities.

Central and Eastern Europe

Romania is emerging as one of the key players in renewable energy in Central and Eastern Europe, focusing on hydroelectric and solar power. Since the introduction of a new commodities platform for energy trading and the lifting of a previous ban on power purchase agreements, corporate interest in Romania's energy market has surged.
The Czech Republic produces more energy than it consumes, making it a major supplier of renewable energy to Germany. To provide a steady supply of electricity, the Czech government is concentrated on increasing its capacity for renewable energy, especially in the areas of solar and nuclear power.
Hungary's energy production is similarly dominated by nuclear power. The country has seen a rise in renewable energy contributions, particularly from solar, and has adjusted its targets accordingly. Despite lower residential energy prices, overall consumption has decreased.
Poland’s coal share in the energy mix is declining, while wind and solar now account for 23% of the total energy mix. The government is implementing supportive measures to enhance renewable energy development, aiming to increase the share of renewables to 32% by 2030 and 50% by 2040.

Spain

The new development and construction milestones regime pose challenges for projects, but upcoming public tenders for new connections present opportunities for greenfield investments.
Current capacity constraints in Spain necessitate new tenders and ambitious planning, with offshore wind and repowering trends emerging, while hydrogen remains immature and far from achieving "grid parity."

Italy

In Italy, the renewable energy sector is predominantly driven by solar energy, while the contributions from wind energy and biomass are on the decline.
Challenges for energy transition posed by an uncertain regulatory framework and sluggish authorization processes.
Despite current issues, Italy demonstrates a strong political commitment to renewable energy.

Ireland

Ireland currently generates just below 40% of its power from renewables, requiring significant increases in offshore wind capacity to meet the targets.
The discussion stressed the need for enhanced financing capabilities among domestic lenders and the importance of resolving grid access issues. Opportunities in onshore wind, solar projects, and energy storage were identified, along with the potential for corporate PPAs.

Repowering wind

An engaging discussion was held about the issue of aging onshore wind farms in Europe, many of which are over 20 years old. This situation leads to a critical decision between extending the life of existing turbines or repowering them with newer technology. Currently, lifetime extensions are preferred due to lower costs and the ability to maintain revenue, but repowering is essential for meeting climate goals, as it could provide two-thirds of the needed wind capacity increase by 2030.

Energy storage

A multi-perspective discussion about energy storage solutions stressed the value of well-structured policy frameworks, highlighting achievements in California and New South Wales as benchmarks. The panel emphasized that the projects with long-term tolling agreements, which provide stable income streams, are particularly attractive for investors. Emerging markets such as Spain, India, Japan, and Chile were mentioned as the regions that present substantial investment potential in energy storage solutions.

Smart grids

In a discussion on smart grids, the panelists noted that the current electricity infrastructure in the EU is not sufficient to address the energy trilemma of security, sustainability and affordability. Smart grids are essential to effectively match electricity supply and demand. Prosumers are at the heart of the smart grid transformation, driving the integration of renewables and advanced technologies. However, regulatory and commercial challenges remain, and simpler rules are needed to encourage innovation and improve local load control.

International renewable energy certification

International renewable energy certification is experiencing notable growth, due to rising issuance and transactions of certificates like Guarantees of Origin (GoOs) and I-RECs. However, several challenges such as double counting and misleading renewable energy claims have emerged, highlighting the need for stronger legislative frameworks and clearer guidelines on certificate cancellations. To unlock the potential of these certification systems, it's essential to ensure accurate consumption reporting and clarify the role of GoOs in renewable claims.

Corporate PPAs

In the session on current framework for corporate PPAs, the speakers pointed out that the corporate PPA market is evolving, with an increasing number of companies participating in these agreements. The market is reacting to macro and micro disruptions, with challenges such as lengthy negotiation periods and price volatility influencing corporate decisions. Panelists agreed that external advisors are essential, especially in jurisdictions where regulatory frameworks can be complex. Looking ahead, companies are prioritizing sustainability and science-based goals, even as the marketplace becomes more complex and demands more sophisticated.

If you would like to discuss any of these topics further, please reach out to the relevant DLA Piper partners listed below.

Watch the recording

2024 Agenda

12:00 – 12:45 Registration & lunch

12:45 – 13:00 Welcome and introductions

Simon Levine, Global Co-CEO | International Managing Partner |Global and International Board Member, DLA Piper
Natasha Luther-Jones, Partner |International Head of Sustainability and ESG | Global Co-Chair, Energy and Natural Resources Sector, DLA Piper

13:00 – 13:40 Investing in the European energy transition

This panel session explores investment prospects and hurdles in Europe's energy transition. Experts will dissect opportunities in renewables amidst regulatory shifts.

Stefano Fissolo, Senior Director, GLP
Ronan Kilduff, CEO, Elgin Energy
Isabel Rodriguez, Managing Director, Nuveen
Giulio Maroncelli, Partner | Head of Corporate, Italy, DLA Piper

13:40 – 14:20 Powering the future: Financing the global energy transition

Join us for an insightful panel discussion featuring industry leaders at the forefront of the energy transition. Together, our panellists will explore innovative financing strategies driving the shift towards renewable energy and sustainable practices. Don't miss this opportunity to gain valuable perspectives from senior players shaping the future of energy finance.

Jenny Blackford, Head of Project Finance, UK, Middle East, Africa, Head of Syndications, EMEA, Asia, Australia and Head of Siemens Bank GmbH, London Branch
Stephen Jennings, Head of Energy Structured Finance Office for EMEA |Head of Sustainable Business Division for EMEA, MUFG Bank
Heiko Ludwig, Global Head Structured Finance & General Manager London Branch, Nord LB
Natasha Luther-Jones, Partner | International Head of Sustainability and ESG |Global Co-Chair, Energy and Natural Resources Sector, DLA Piper

14:20 – 14:50 Coffee break

14:50 – 15:25 Breakout session 1

The challenges of developing and financing low carbon H2 projects

In this session we'll delve into the key development risks, funding hurdles, regulatory landscape, technological advancements and market challenges for sustainable hydrogen projects. Gain valuable insight into navigating the path to low carbon investment.

Martin Forman, Director, ISD New Energies & Natural Resources, EMEA, SMBC Bank International plc

Amy Hebert, CEO, Arcadia eFuels

Andreas Gunst, Partner, Vienna, DLA Piper

Iain Elder, Partner, London, DLA Piper

Energy landscapes of Central and Eastern Europe

Dive into the dynamic energy landscapes of Central and Eastern Europe with our teams from Hungary, Czech Republic, and Romania. In this session, we provide an overview of the regulatory environments and policy frameworks influencing the energy sectors in these countries as well as lucrative prospects in this vibrant region.

Paula Corban-Pelin, Partner, Bucharest, DLA Piper

Miroslav Dubovsky, Partner | Head of Corporate practice, Czech Republic, DLA Piper

Gabor Simon, Partner | Head of Energy and Procurement, Budapest, DLA Piper

James Carter, Partner, London, DLA Piper

Investment trends in Irish renewables

Ireland is at a pivotal point in its energy transition as it goes offshore at scale for the first time but also continues to develop onshore renewables at pace to meet its 2030 targets. William Marshall will give an overview of the Irish renewable electricity sector and the huge opportunity but also the significant challenges that exist within it. Seán McGrenaghan will then lead a panel discussion with industry leaders to take a deeper dive on these issues.

Tara Deeny, Senior Manager, Sustainable Energy & Infrastructure Bank of Ireland

Joanne Joyce, Central Operations, Schroders Greencoat

William Marshall, Partner, Dublin, DLA Piper

Sean McGrenaghan, Legal Director, Dublin, DLA Piper

15:30 – 16:05 Breakout session 2

Smart grids: the key to unlocking Europe’s energy transition?

In this session we will explore how smart grids are deployed to meet the demands of the energy transition, the current state of the European smart grids market, and key challenges and opportunities for sector growth.

Ravichandra Kshirsagar,Commercial Vice President Micro Grid business, Europe & International Operations, Schneider Electric

Aditi Tulpule, Director Strategy Regulation & Compliance, SNRG

Sophie Linnell, Senior Associate, Leeds, DLA Piper

Griffin O'Rourke, Senior Associate, London

European investment into US energy transition: Leveraging the Inflation Reduction Act

In this session, we will explore trends and strategies for foreign investments into the US energy transition by European corporate, fund and institutional investors, with a particular focus on the Inflation Reduction Act’s positive impact on opportunities in the space.

Raul Farias, Partner, San Diego, New York, DLA Piper

Jennifer Wnek, Partner, Philadelphia, DLA Piper

The Nordic energy transition: Investment opportunities

Join us as we navigate the evolving renewable energy sector in the Nordic region, unveiling promising avenues for investment amidst the shift towards sustainability.

Mathias Bimberg, Head of Infrastructure, Prime Capital AG

Anthony Doherty, Chief Investment Officer, NTR plc

Fred Lindblom, Partner | Co-Head Infrastructure, Construction and Transport Sector, Europe, DLA Piper

16:10 – 16:45 Breakout session 3

The power of repowering - Revitalising wind energy

A brief look at the opportunities and challenges around ageing wind farms and repowering.

Stefanie Bourne, Director – Renewables & Offshore Wind, UK&I, DNV

Gary Bills, Chief Operating Officer (Division Renewables), Ignitis Group

Anna Mills, Partner, London, DLA Piper

Sarah Thomas, Partner, London, DLA Piper

Mark Briggs, Legal Director, London, DLA Piper

Energy transition and investment Opportunities in Germany

The energy transition and the goal of transforming Germany into a climate-neutral industrialised country by 2045 are creating new dynamics that are making investments in renewable energies in Germany more attractive. Infrastructure projects are increasingly becoming the focus of institutional investors but also of industrial players.

Michael Cieslarczyk, Partner, Dusseldorf, DLA Piper

Manuel Indlekofer, Partner, Munich, DLA Piper

Snapshot on Poland and its booming RES market

Poland already has over 25 GW of installed RES capacity, but that figure is intended to be doubled in the coming future. PV is on a rise and new regulations are promoting onshore, offshore and BESS. During this session the speakers will outline the macroeconomic data concerning RES market in Poland and key elements of the support schemes / streams of revenues that can be secured.

Luis Eduardo De Franca, Director of Development, Northern Europe, Lightsource bp

Katarzyna Suchcicka, Country Manager, OX2 Poland

Jacek Gizinski, Co-Managing Partner, Warsaw, DLA Piper

Oskar Waluśkiewicz, Partner, Warsaw, DLA Piper

16:45 – 17:10 Coffee break

17:10 – 17:45 Breakout session 4

Renewable roadmap: Navigating corporate PPAs

Join us for an insightful session on Corporate Power Purchase Agreements (PPAs), a game-changing strategy for businesses in renewable energy procurement. Our panellists will delve into the benefits of Corporate PPAs, from cost savings and sustainability goals to enhancing corporate reputation. Explore the various types of corporate PPAs, key issues to consider in negotiations, and real-world examples of successful implementations across industries.

Lee Donovan, Senior Legal Counsel at Statkraft

Maria Fahlén, Commercial Manager Green Investment, H&M Group

Lindsay MacLeod, Partner, Seattle, New York, DLA Piper

Italy's legislative and market outlook: Advancements in BESS and renewables

Join us for an exploration of Italy's legislative landscape, focusing on the latest developments and forthcoming opportunities in Battery Energy Storage Systems (BESS) and renewables. Gain valuable insights into how these advancements are shaping the future of energy projects in Italy and discover strategies to leverage emerging opportunities in the sector. Whether you're an investor, developer, or policymaker, this session offers crucial insights into navigating Italy's evolving energy market.

Germana Cassar, Partner, DLA Piper

Vincenzo La Malfa, Partner, Rome, DLA Piper

Giovanni Ragnoni, Partner, DLA Piper

Federico Zucconi, Partner, DLA Piper

Update on the energy transition in Asia

This session explores the potential of inbound and outbound energy transition investments. Europe’s energy transition has made strong progress and many Asian players look to the old continent as a benchmark on what to do – and what not to do. The experience and expertise of European energy players can be applied to support an effective and successful energy transition in Asia. Join us as we envision a sustainable future for energy transition across these key regions.

Soichiro Sekito, Head of Corporate & Structured Finance (EMEA), Development Bank of Japan (London)

Zsuzsanna Sessel-Zsebik, Director Legal, of RWE Offshore Wind

Peter Armstrong, Partner, Tokyo, DLA Piper

Vincent Seah, Partner | Country Managing Partner, Singapore, DLA Piper

17:50 – 18:25 Breakout session 5

Harnessing the potential of energy storage to accelerate the energy transition

Join us for a session exploring the buoyant global energy storage market. Reflecting on lessons from around the world from investors, developers and lenders, we'll delve into the trends, opportunities and hurdles facing the energy storage sector. Our panellist will provide valuable insights on investor and lender appetite, the utility and feasibility of mid to longer term storage options and emerging storage technologies – each of which are transforming energy management, smoothing the intermittency of conventional renewable energy generation, fostering sustainable practices and influencing the future of power distribution.

Jon Norman, President, Hydrostor Inc.

Olivia Satturley, Director - Specialist Asset Finance and Project Finance, NatWest

Chris Twomey, Partner |COO | Head of Asset Management, Sosteneo Infrastructure Partners

Rubayet Choudhury, Partner, London, DLA Piper

Chris Mitchell, Partner, Melbourne, DLA Piper

Fireside chat: Investing in Spain's energy transition

In this fireside chat, we explore the potential of the energy transition market in Spain from an investment perspective. Drawing from our guest's current projects, we’ll delve into practical examples and discuss the challenges and opportunities this approach presents. Join us as we envision a sustainable future for energy transition in Spain.

Bart White, Managing Director, EMEA Head of Energy Structured Finance at Santander Corporate & Investment Banking

Pablo Echenique, Partner, Madrid

How can we unlock the full potential of international RE certification?

Discover the central transformative role of renewable energy certification in validating sustainability claims and ensuring genuine progress in the global energy transition. Join us as we delve into recent cases and lessons of RECs based claims (e.g. Budweiser, Iceland) importance for companies, nations, and long-term investments, and developments on granular certification and labels for 24/7 and electrolyser PPAs.

Andreas Gunst, Partner, Vienna, DLA Piper