We are excited to introduce this updated and expanded third volume of Renewable Energy.
As will become apparent from a review of the country-specific discussions, renewable energy law continues to evolve in many different directions around the world. Although each jurisdiction is unique, common themes continue to emerge with respect to the legal issues that practitioners face in this space.
One major recent theme in the renewable energy industry, particularly in the United States, is that newly constructed renewable energy projects are often generating revenue under contracts other than power purchase agreements (PPAs) with utilities. Under the traditional model for project finance, a special purpose entity that owns an energy project (a project company) sells electricity under a long-term PPA with a regulated utility that has a monopoly over retail electricity sales in its service territory. Although financing parties generally continue to require a long-term contract that covers the sale of electricity at a fixed price, as a result of new legislation and new demand for renewable energy from corporations and communities, the revenue contract is taking new forms, such as: