This module builds on the “Law of Project Finance” part in the module “Law of Project and Acquisition Finance I”. It is based on case studies of project financing in the energy sector (both traditional and renewable energy generation) and energy infrastructure projects.
The module offers an introduction to project financing in the energy sector. Due to the increasing interconnectedness of energy-related topics, this includes an introduction to the political and economic parameters for investment in energy projects (renewable energy sources; conventional energy sources; energy infrastructure projects). Pre-existing knowledge of the legal, economic and financial structures of various forms of project finance is consolidated and expanded by way of select case studies in the areas of renewable energy (e.g. an off-shore windpark in the North Sea), conventional energy (e.g. restructuring of a German gas power plant project) and energy infrastructure (e.g. a submarine communications cable project through the North Sea).
The course curriculum includes:
A. Introduction to the energy sector, the legal framework for energy projects and project financing of energy projects
• Project financing of energy projects
• The challenges of global energy sourcing and consequences for the project financing of energy projects
• Structures of project financing including ECA financing, multilateral development banks and infrastructure bonds as an asset category
B. Case studies
1. Case Study I – project financing of conventional power plants (restructuring of a gas power plant project)
- General structure and documentation of a project
- Merit order, purchase agreement and market risks
- Financial figures, utilisation scenarios and restructuring instruments
2. Case Study II – project financing of renewable energy installations (off-shore wind park)
- Introduction to off-shore wind park projects
- Topics of bankability and risk analysis, in particular EPC contracts and interface risks
- Renewable energy vs. conventional power plants / renewable energy systems
3. Case Study III – project financing of infrastructure installations (submarine communications cable through the North Sea)
- Introduction to infrastructure projects
- Financing of infrastructure installations
- ECA financing
- cross-border project financing in international private and procedural law
Learning outcome and skills:
Upon completion of the module, the students will be familiar with the prevailing political and economic parameters for investments in energy projects.
Through their work on case studies, the students learn to recognize the legal, economic and financial structures of diverse project financing in the energy sector, and they can apply this in practice to projects of their own.
Pre-requisite is "Law of Project & Acquisition Finance I" in the winter semester