Energy Law

The importance of energy and climate policy has been increasing over the last years, and the area is high on the political agenda both in Denmark and abroad. Among the reasons for this are the climatic changes and growing environmental and political concerns over our dependence on fossil fuels.
Now, focus is therefore on securing and optimising existing energy supplies, and on reducing the environmental impact of energy sources and dependence on fossil fuels by switching to green energy, thus reducing energy consumption and, by that, CO2 emissions.

Kromann Reumert's energy law group has many years of experience in advising on energy-related issues in Denmark and the EU.

The energy law group provides advice to Danish and foreign energy companies, focusing on providing commercially and politically operable solutions.

Our advice include:

  • Cleantech
  • CO2 quotas and CDM/JI Credits
  • Gas supply
  • Heating
  • Oils and gas - E&P activities
  • Power Supply
  • Water supply regulation
  • Wind

Valuable contacts

As a result of the detailed regulatory regime governing this area of the law, Kromann Reumert's energy law group is in regular contact with the authorities, especially the Danish Energy Agency and the Danish Energy Regulatory Authority. Hence, the group has many valuable contacts in the central administration.

The detailed rules also mean that the group represents clients on a regular basis in energy-related cases before the Danish Energy Agency, the Danish Energy Regulatory Authority, the Danish Energy Board of Appeal and the courts.

Drawing on a large number of cases, the energy group has wide international experience in energy related areas such as wind and solar energy projects in the UK, Sweden, Greece, Spain, France, the Netherlands, Portugal, Belgium, Ireland, Romania, Bosnia, Montenegro, Italy, Mexico, the Dutch Antilles, USA and Korea, power plant projects in Germany and Cuba, acquisition of foreign energy companies etc.

In connection with these projects, we have cooperated with a number of foreign advisers and partners specialising in energy law, which means that we can offer "one-stop-shop" advice across national borders.

CLEANTECH

The group provides regular advice to Danish players in the cleantech area. 

Our advice including on:


  • The sale and purchase of wind turbines (e.g. turbine supply agreements and service and maintenance agreements)
  • Wind farm, solar energy and biomass projects, including the projects at Horns Rev, Rødsand and Overgård Estate
  • A substantial number of wind and solar energy farms as well as biomass plants abroad. The projects have involved a total transfer of more than 4,000 MW generation capacity placed in 20 different countries, and we therefore have a profound knowledge of the statutory framework governing "green" energy generation in Denmark and abroad
  • Renewable energy projects both in Denmark and abroad
  • Phase II bioethanol projects and energy-saving agreements/partnership agreements for energy conservation
  • The introduction of the new generation of battery-driven cars
  • Solar energy

CO2 QUOTAS AND CDM/JI CREDITS

Kromann Reumert's energy law group also has experience in advising Danish and foreign clients on the legal aspects of CO2 quotas and CO2 credits.

The importance of CO2 quotas and credits to Danish and foreign undertakings is growing as a result of increased focus and regulation. This gives rise to both legal and commercial considerations – i.a. in relation to contract types and corporate CSR policies.

We have advised on legal issues relating to the rules on CO2 quotas, including:

  • Inquiries about transfer of quotas 
  • Transfer of businesses which have quotas, including transfer of emission permits (operator licences)
  • Registration and charging of quotas 
  • Inquiries relating to the discontinuation of businesses to which quotas have been allocated 
  • Purchase of CO2 credits in CDM/JI projects through bilateral purchase contracts with owners in developing/industrial countries and brokers 
  • Establishment of and participation in foundations with the object of obtaining credits, etc.

GAS SUPPLY

Kromann Reumert's energy law group's work in relation to natural gas regulation includes advice on:

  • Concession law issues
  • The rules on earnings band
  • Consumer matters
  • Gas auctions
  • Conclusion of gas purchase contracts between major players in the market, etc.


We represent clients before administrative bodies and in court cases concerning the fixing of transmission and distribution tariffs and third-party access conditions, and have also advised on concessionary and other regulatory issues relating to natural gas storage.

We have also been involved in the implementation of amendments to the Danish Natural Gas Supply Act, including the preparation of the rules on the Danish State's right and obligation to purchase distribution networks.

In addition, the energy law group is experienced in the conclusion of gas hub agreements and in the EFET standard contract, acting as advisers to the European Federation of Energy Traders.

HEATING

The energy law group advises on heat supply planning and the statutory framework within the heating area, including the possibilities of establishing new decentralised heating generation capacity, change in the classification of areas that are currently classified as areas supplied with district heating or natural gas, etc.

The group has also advised on:

  • The interpretation of heating wholesale contracts
  • Amendments and supplements existing heating contracts
  • In some of the first municipal conversions of heat supply businesses into companies
  • Acquisition of decentralised power plants by external player


The group has represented clients before both administrative bodies and the courts in cases of general public importance concerning the principle of substitution in relation to biomass-fired combined heat and power.

OIL AND GAS - E&P ACTIVITIES

Since the 1980s we have provided advice on exploration and production activities, primarily on the Danish continental shelf, which has earned us a good reputation in this legal area.

The group's members have considerable experience in:

  • Interpreting the Act on the Use of the Danish Subsoil
  • Licensing
  • Joint operator agreements
  • The direct or indirect transfer of licences in whole or in part

POWER SUPPLY

The energy law group provides regular advice to small, medium, and large power supply companies on regulatory issues and has gained in-depth knowledge of the power supply sector and the rules and regulations governing the sector.

We advise the Danish Energy Association, which is the professional trade organisation of Danish energy companies, on energy law issues and have assisted i.a. in connection with the implementation of new legislation and the current financial regulation of collective power supply companies. In addition, we represent the Association before the Danish Energy Regulatory Authority and the Danish Energy Board of Appeal in cases relating to the prices charged by supply-obligated undertakings.

Among other things the energy law group:

  • Assisted in connection with the consolidation of the Danish energy sector which took place in the years 2001-2006
  • Advised in connection with the restructuring of the Danish power grid tariff scheme
  • Assisted both public, cooperative and municipal power supply companies in cases involving energy law issues and in connection with restructurings, mergers and acquisitions
  • Represented a client before the Danish Energy Supplies Complaint Board in a case concerning an increase in subscription prices
  • Assisted in the sale of the first regional transmission grid under section 35 of the Danish Electricity Supply Act
  • Assisted in the sale of one of the two gas storage facilities in Denmark; 
  • Assisted in making the legal assessment that formed the basis of the merger between power plants in Jutland and on Funen
  • Adviced independent power plants, notably on regulatory issues in relation to power and heating, before the merger between the power plants in Jutland and on Funen
  • Assisted with advice on contracts for the setting up of joint ventures, the building of waste-fired power plants, the establishment of shore and off-shore wind farms in Denmark and abroad
  • Advises on consumer participation rules, pre-emption rights, etc.

WATER SUPPLY REGULATION

The group's members are experienced in water supply regulation and have, among other things, assisted in the establishment of municipal water supply companies, including waste water supply companies.

WIND

The Energy Law Group includes several leading Danish specialists, providing expert advice on the legal and commercial aspects of wind energy.

Over the years, we have obtained thorough knowledge of the wind industry, and in recent years, we have provided advice on wind energy projects in Denmark and abroad of a total capacity of more than 14,000 MW. At present, we work on active projects totalling more than 2,000 MW.

We provide advice to both small and large companies on off- and onshore wind farm projects, including purchase of wind turbines, financing of wind farms, project development, regulatory matters and due diligence in connection with existing projects.

We also advise small developers who wish to develop projects in Denmark and large international players who need assistance in connection with transactions abroad.

As examples of large transactions, we represented DONG Energy in connection with negotiating and drafting the global framework agreement with Siemens Wind Power in 2012 on the purchase of 300 Siemens 6 MW wind turbines.

In 2012, we provided advice to ONDD (the Belgian export credit agency), GIEK (the Norwegian export credit agency) and EKF (the Danish export credit agency) on project financing of the 216 MW Northwind offshore project in Belgium.

We have obtained thorough knowledge of our customers' business and gained expertise in the special conditions characterizing the industry. This also includes wide experience in negotiating wind projects abroad.

We have negotiated wind projects in a number of countries, including England, Germany, Poland, Italy, Spain, France and Turkey, as well as the Middle East, Asia, Australia, North and South America.

Our experience enables us to advise your company on off- and onshore projects, including:

  • Supply- and turnkey agreements
  • Service agreements
  • Global framework agreements
  • Subcontractor agreements
  • Regulatory matters
  • Financing: project financing, pipeline financing and ECM/DCM products 
  • Investments
  • Project development
  • Purchase and sale of projects and wind farms
  • Drafting of tender documents for purchase of wind turbines
  • Disputes concerning wind energy

Learn more about Offshore Wind Energy.