1.6.2020

The Energy Sector Transformation Will Stop for No Pandemic

Though the coronavirus has thrown the oil markets into disarray, the pandemic is ultimately a temporary anomaly in the longer-term trends in energy sector. The breakthrough of renewable energy, climate change and sustainability requirements haven’t gone anywhere, and they continue to fundamentally impact the entire sector.

Energy projects continue to interest many financiers, investors and buyers despite the current crisis. This is very good news, as the continuity of financing is important in any transformation.

Responsibility goals are a cornerstone of sustainable business. Customer demand for low-emission and energy-efficient services and products is continually increasing. Energy touches every level of society, and energy sector companies can have a global impact through responsible business practices.

Alongside customer expectations, international regulation is also speeding this transformation. The European Commission published its proposal for climate legislation in March. This legislation would set a binding target for the EU to achieve carbon neutrality by 2050. However, energy sector actors cannot afford to wait for regulation and political decisions – it is vital to move forward with transforming their businesses today. If anything, the coronavirus looks set to increase the speed of change: EU decisionmakers have already mentioned accelerating the Green Deal investment programme.

Global energy sector projects and transactions call for international operating models and contractual practices. They provide certainty to the implementation of investments and, thus, play a role in moving the global economy into a more sustainable future.

Latest references

We assisted DNA with their 10-year power purchase agreement (PPA) with Statkraft. The PPA enables DNA to buy 85 gigawatt-hours of clean energy per year from the new Palokangas wind farm, owned by investment firm Exilion Tuuli. The project, which will come online in late 2024, will generate 80% of DNA’s power needs. The Palokangas wind farm will be located in the Ostrobothnia region and equipped with 12 turbines.
Case published 15.8.2023
We are advising Oomi Oy in questions relating to electricity market legislation, consumer protection and marketing law. Oomi is one of the largest electricity sales companies in Finland. The company sells electricity contracts, solar power systems and electric car charging solutions to consumers and businesses.
Case published 19.6.2023
We advised Excelerate Energy on the conclusion of a lease agreement with Gasgrid Finland Oy for the Floating Storage and Regasification Unit (FSRU) Exemplar. The Inkoo LNG terminal project will have a significant impact on securing the supply of gas to Finland and Estonia as imports of pipeline gas from Russia cease. The Exemplar is the first FSRU in Finland and the Inkoo LNG terminal project is legally unique. Moreover, the project, which is critical for Finland’s and the Baltics’ gas supply, was completed in an exceptionally short timeframe. Our experts assisted the company in a wide range of areas including contracts, energy legislation, licensing, labour law, taxation and structuring.
Case published 9.6.2023
We acted as the local legal advisor to OX2 in an arrangement whereby OX2 agreed with Ingka Investments, an investment company of the Swedish IKEA retail business, on the sale of a 49% stake in its three offshore wind projects in Finland. The three offshore wind projects, Halla, Laine and Tyrsky, are located in the Finnish Exclusive Economic Zone. The projects’ total annual production could amount to up to 29 TWh once operational, corresponding to more than one third of the electricity consumed in Finland in 2022. The aim is that the offshore wind projects start generating electricity by the turn of the 2030s. OX2 started developing the Halla and Laine offshore wind projects four years ago and was the first company to obtain exploration permits from the Finnish Government for its offshore wind projects. We have advised OX2 in the development and permitting of the offshore wind farm projects .
Case published 16.5.2023