Infrastructure Finance Energy, and Project Finance Legal Services
Practical guide to infrastructure, energy and project finance legal services from a London-based practice. Focus on structuring, documentation, risk allocation and regulatory considerations in England and Wales.
Our London office at Holborn Gate, 330 High Holborn, London, WC1V 7QH, advises sponsors, lenders, investors and public authorities on the legal and commercial issues that arise in large-scale infrastructure, energy and project finance transactions across England and Wales. Projects routinely combine complex contractual structures, multi-layered financing and sector-specific regulation; legal input must therefore be practical, commercially aligned and sensitive to political and procurement contexts.
Overview and scope
Infrastructure, energy and project finance covers the design and delivery of long-term assets where financing is secured on project cash flows and assets rather than on sponsor balance sheets. Typical sectors include renewable and conventional power generation, transmission and distribution, transport (roads, rail, ports), utilities (water, waste) and social infrastructure (hospitals, schools). Legal work commonly spans project structuring, procurement, financing, construction and operations, together with regulatory approvals and contract enforcement.
Core legal services
- Project structuring: advising on special purpose vehicle (SPV) arrangements, sponsor equity structures, and allocation of commercial risk among stakeholders.
- Transaction documentation: drafting and negotiating concession agreements, power purchase agreements (PPAs), engineering, procurement and construction (EPC) contracts, operation and maintenance (O&M) agreements, and offtake contracts.
- Financing and security: advising on syndicated and bilateral loan facilities, export credit agency (ECA) backed financings, mezzanine and equity commitments, and creating security packages (charges, pledges, guarantees and intercreditor arrangements).
- Regulatory and permitting: securing licences and consents, interfacing with sector regulators and addressing planning and environmental consents.
- Risk allocation and mitigation: identifying material contract, operational, market and political risks and documenting mitigation (hedging, insurance, warranties and step-in rights).
Key commercial and regulatory considerations
Clients must balance bankability against public policy and procurement constraints. Key considerations include:
- Currency, inflation and market risk: appropriate allocation of price risk in long‑dated contracts and consideration of indexation mechanisms.
- Regulatory stability: evaluating exposure to changes in regulation or policy, particularly in energy where support schemes and network charging evolve.
- Force majeure and termination: carefully drafted clauses addressing systemic events, change in law, and orderly step-in or transfer rights for lenders and public authorities.
- Permitting and grid connection risk: close integration of contractual timelines with planning, environmental and grid connections to avoid delay and cost overrun.
Practical checklist for project sponsors and lenders
- Confirm project purpose, scope and required consents; map permitting timeline against financial close.
- Define risk allocation matrix: identify which party takes construction, completion, performance, market and regulatory risks.
- Secure robust security package and intercreditor terms that reflect anticipated project lifecycle and recovery priorities.
- Ensure procurement and state aid compliance for projects involving public authorities or subsidies.
- Stress-test cashflow models against downside scenarios and align covenant packages with realistic operational metrics.
- Plan for dispute avoidance and resolution: escalation, mediation, expert determination and arbitration clauses tailored to project profile.
Jurisdiction and sources
Primary legal and regulatory frameworks for projects in England and Wales include company and insolvency law, planning and environmental law, and sector regulation. Authoritative sources and regulators include:
- GOV.UK — policy, guidance and statutory instruments
- HM Treasury — public finance and procurement policy
- Infrastructure and Projects Authority — guidance on major projects
- Ofgem, Ofwat and other sector regulators — sector-specific licences and charging
- Planning Inspectorate and local planning authorities for consenting
- Companies House and the Bank of England for corporate and financial system matters
General information only; not legal advice and not a substitute for advice on a particular matter.
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Contact the London office with a high-level, non-confidential outline of the issue. We can discuss the appropriate next step.