TRW & Co · Energy, Infrastructure & Transport
Energy Lawyers in London
Energy lawyers London developers, investors and energy users instruct deal with a market being rebuilt in real time: grid connection reform, record Contracts for Difference auctions, a new planning regime and a publicly owned system operator. This guide explains the framework, the decisions that drive value, and how to avoid the mistakes that delay projects and deals.
Key pointSince connection reform, a credible grid date and a secure route to market drive an energy project's value more than consent alone, so buyers and lenders now diligence NESO queue status as closely as planning.
At a glance
Licences are mandatory
The Electricity Act 1989 requires a licence or exemption to generate, transmit, distribute, supply or interconnect; acting without one is an offence.
NESO runs the system
The publicly owned National Energy System Operator took over system operation and planning on 1 October 2024 and runs CfD allocation.
Clean Power 2030 target
The December 2024 action plan targets at least 95% clean generation in Great Britain by 2030, with unabated gas below 5%.
Planning reform enacted
The Planning and Infrastructure Act 2025 received Royal Assent on 18 December 2025, reshaping NSIP consenting, with implementation phased through 2026.
Energy is NSIA-sensitive
Acquisitions of control over qualifying energy entities can require mandatory notification and clearance under the National Security and Investment Act 2021.
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What energy lawyers London clients need: the scope of energy law
Energy lawyers London investors, developers and offtakers instruct work across the whole value chain: generating power, moving it through networks, selling it, and producing and trading oil, gas, hydrogen and carbon. The common thread is a heavily regulated market in which licences, consents and government contracts decide whether a project is bankable.
In Great Britain, energy law becomes a live legal question at three points: when a project is conceived (site, grid, consent), when it is financed or sold (contracts, revenue support, security), and when something goes wrong (disputes, regulatory enforcement, insolvency of a counterparty).
Energy lawyers London clients appoint at TRW & Co advise developers and sponsors, infrastructure and private capital funds, industrial energy users signing long-term supply deals, suppliers and traders, and overseas investors, including from Bangladesh, the Gulf and Asia, looking at UK energy assets. Our dedicated renewable energy, oil and gas and nuclear pages go deeper on each sector.
The legal and regulatory framework
Energy regulation in Great Britain is largely reserved to Westminster, but planning and some consenting powers are devolved. Northern Ireland has a separate electricity market and regulator (the Utility Regulator) and forms part of the all-island Single Electricity Market, so most of what follows applies to Great Britain only.
Primary legislation
- The Electricity Act 1989 prohibits generating, transmitting, distributing, supplying or interconnecting without a licence or exemption, and sets Ofgem's core duties for electricity.
- The Gas Act 1986 does the same for gas transportation, shipping and supply.
- The Energy Act 2023 created the framework for the National Energy System Operator (NESO), licensing for carbon dioxide transport and storage, hydrogen business models and heat network regulation.
- The Petroleum Act 1998 vests petroleum in the Crown and underpins offshore licensing, while the Energy Act 2016 put the regulator now known as the North Sea Transition Authority (NSTA) on a statutory footing.
- The Planning Act 2008 governs consent for nationally significant infrastructure projects (NSIPs) through development consent orders.
- The Great British Energy Act 2025 put the publicly owned investor Great British Energy on a statutory footing.
- The Climate Change Act 2008 sets the net zero 2050 target and carbon budgets that shape policy.
| Body | Role | When you deal with it |
|---|---|---|
| Department for Energy Security and Net Zero (DESNZ) | Policy, CfD scheme design, offshore oil and gas environmental regulation (via OPRED) | Revenue support, licensing policy, decommissioning |
| Ofgem | Economic regulator for gas and electricity; licensing and enforcement; heat networks from 2026 | Licence applications, code changes, investigations |
| National Energy System Operator (NESO) | Publicly owned system operator and planner since 1 October 2024; CfD delivery body | Grid connection offers, balancing, CfD allocation |
| North Sea Transition Authority (NSTA) | Licensing and stewardship of offshore oil, gas and carbon storage | Licence assignments, field development plans |
| Planning Inspectorate and Secretary of State | Examine and decide NSIP applications in England | Large generation, transmission and storage consents |
| The Crown Estate / Crown Estate Scotland | Seabed leasing | Offshore wind, cables and carbon storage sites |
| Office for Nuclear Regulation | Nuclear safety and security | New nuclear and decommissioning |
The 2026 policy landscape: what has changed
The legal backdrop has moved quickly since 2024. Energy lawyers London clients rely on should be tracking at least the following developments.
Clean Power 2030. The Clean Power 2030 Action Plan, published in December 2024, targets a system in which clean sources supply at least 95% of Great Britain's generation by 2030, with unabated gas below 5%.
Market design. In July 2025 the government concluded its Review of Electricity Market Arrangements by rejecting zonal pricing in favour of reformed national pricing. Location signals will come through other tools, such as network charging and connection policy.
Grid connections. With a queue that had grown beyond 800GW, Ofgem gave NESO powers to reorder connections against readiness and strategic need. NESO has said only around a third of projects seeking connection were expected to receive a firm offer. See our guide to grid connection reform.
Revenue support. Allocation Round 7 of the Contracts for Difference scheme, with results published in January and February 2026, secured record capacity and moved to 20-year contract terms for key technologies. AR8 opened for applications in July 2026. Our explainer on how the CfD works sets out the mechanics.
Planning. The Planning and Infrastructure Act 2025 received Royal Assent on 18 December 2025, reforming the NSIP regime, removing statutory pre-application consultation and narrowing judicial review routes. Secondary legislation is being phased in during 2026.
Oil and gas. In November 2025 the government confirmed it would allow new licences for production that ties back to existing fields without new exploration, while keeping the Energy Profits Levy until March 2030.
Heat and carbon. Ofgem began regulating heat networks in January 2026, and a UK carbon border adjustment mechanism, legislated in the Finance Act 2026, is due to apply from 1 January 2027.
In today's market, a grid connection date and a route to market are worth more than a planning consent on its own.
Key decisions for investors and developers
Route to market
For generation, the choice is between a government CfD, a corporate power purchase agreement, a utility offtake, merchant exposure, or a blend. A CfD gives price certainty but strict milestone and delivery obligations. A corporate PPA can be tailored but depends on the offtaker's credit. Merchant exposure suits storage and flexible assets where trading revenue drives value.
Consent route
Large projects in England above the Planning Act 2008 thresholds need a development consent order; smaller ones go through local planning. Following a 2025 order, onshore wind is back within the NSIP regime and the solar threshold is 100MW in England. Wales and Scotland have their own regimes, with section 36 Electricity Act consents still central in Scotland.
Ownership and joint venture structure
Most large projects are owned through special purpose vehicles with several sponsors. The shareholder agreement must deal with funding obligations, deadlock, transfers before commercial operation, and change-of-control consents in the CfD, grid and lease documents. Our joint ventures team works alongside the energy team on these structures.
Foreign investment screening
Energy is one of the sensitive sectors under the National Security and Investment Act 2021. Acquisitions of control over qualifying energy entities can require mandatory notification and clearance before completion. Our NSIA team advises on whether a filing is needed.
Storage, hydrogen and carbon capture
Newer technologies come with their own support models. Long-duration electricity storage can apply for Ofgem's cap and floor regime, which sets a minimum and maximum revenue band over a long term. Low-carbon hydrogen producers and carbon capture projects rely on business models and licensing introduced under the Energy Act 2023. Our guide to hydrogen and CCUS business models explains the contracts involved.
For these projects, the critical legal work is allocating risk across the chain: an emitter, a transport and storage network and a government counterparty must all perform for revenue to flow. Energy lawyers London sponsors appoint should map those interfaces early and make sure each contract deals with the failure of the others.
The energy project lifecycle step by step
- Site and land rights. Secure option agreements and leases onshore, or seabed agreements with The Crown Estate offshore, with rights for cables, access and substations.
- Grid connection. Apply under the reformed connections process, evidence project readiness, and manage securities and liabilities in the connection offer.
- Consents. Run environmental assessment and obtain a development consent order, planning permission or section 36 consent, plus environmental permits.
- Route to market. Bid into a CfD round, negotiate a PPA, or structure merchant and ancillary-service revenues.
- Contracting. Negotiate EPC or multi-contract construction packages, turbine or module supply agreements, and operation and maintenance contracts.
- Financing. Close project finance debt, tax equity or equity bridge facilities, with direct agreements and security over project contracts.
- Construction and commissioning. Manage milestone delivery under the CfD and connection agreement, and change and delay claims under construction contracts.
- Operation, refinancing and exit. Comply with licences and codes, refinance once operational, and run sale processes for stakes in operating assets.
Documents and evidence to prepare
Whether you are buying an asset, raising finance or bidding for support, the same core documents drive the timetable. A diligence-ready data room saves weeks.
- Land and seabed rights: options, leases, easements, title reports and any agreements for lease.
- Grid: connection offers and agreements, queue position evidence, securities posted and modification applications.
- Consents: decision notices or development consent orders, conditions discharge evidence, section 106 obligations and environmental permits.
- Revenue contracts: CfD or PPA documents, capacity market agreements, balancing and ancillary-service contracts.
- Construction and supply: EPC, turbine or module supply, warranties, performance bonds and parent guarantees.
- Corporate: shareholder agreements, board approvals, licences or exemption analysis, and any NSIA analysis.
Map every change-of-control and assignment provision across the lease, grid, CfD or PPA, supply and finance documents before you sign heads of terms on an asset sale. A single missing consent from a counterparty can delay completion by months.
Risks and common mistakes in energy transactions
Assuming a grid offer is secure
Connection reform has changed the value of a queue position. Projects that cannot evidence readiness can lose their place or receive a later date, and connection offers carry securities and liabilities that can crystallise if a project is cancelled. Buyers and lenders now diligence connection status as closely as consents. Sellers should collect evidence of readiness and correspondence with NESO and the network operator early, and buyers should allocate connection risk expressly in the sale agreement through conditions, price adjustments or specific indemnities.
Under-estimating CfD delivery obligations
A CfD is a long-term contract with the Low Carbon Contracts Company, not a grant. It contains milestone requirements, target commissioning windows and termination rights, and later allocation rounds have tightened the rules on reducing or surrendering capacity. Missing a milestone can cost the contract. Before bidding, check that consents, grid date, supply chain and finance can realistically meet the timetable, and build the CfD obligations into construction and supply contracts so that risk flows down rather than sitting with the project company.
Missing a licence or exemption
Generating or supplying electricity without a licence or exemption is a criminal offence under the Electricity Act 1989. Many smaller generators rely on class exemptions, and private wire and behind-the-meter arrangements raise particular questions about supply licensing. Developers of embedded or co-located projects should document the exemption analysis and revisit it when the configuration changes, for example when adding storage or new offtakers.
Ignoring NSIA on energy acquisitions
Completing a notifiable acquisition without clearance makes the transaction void and can expose the acquirer to penalties. Energy is a sensitive sector, and the mandatory regime can be triggered by acquisitions of shares or voting rights in qualifying entities, including some acquisitions by existing shareholders increasing their stake. Build NSIA analysis into the deal timetable and conditions precedent, and remember that the government can also call in non-notifiable deals for review.
Weak dispute resolution clauses
Construction and supply disputes on energy projects can be large and technical. Inconsistent dispute clauses across EPC, supply and interface agreements can produce parallel proceedings in different forums. Align expert determination, adjudication and arbitration clauses, and include joinder and consolidation mechanisms where several contractors are involved. For counterparties abroad, an arbitration clause usually gives better enforcement prospects than court jurisdiction.
Energy disputes and regulatory enforcement
Energy disputes tend to be high value, technical and time-critical. Common examples include construction delay and defect claims under EPC and supply contracts, price review and take-or-pay disputes under long-term gas contracts, termination of PPAs, and disagreements between joint venture partners about funding calls or exit.
Many such contracts provide for expert determination of technical questions and arbitration, often under LCIA or ICC rules with a London seat. The Arbitration Act 2025 amended the Arbitration Act 1996 for arbitrations started on or after 1 August 2025, including a new default rule on the law governing the arbitration agreement, so check how its changes interact with existing clauses. See our page on international arbitration.
On the regulatory side, Ofgem can investigate breaches of licence conditions and consumer protection requirements, impose financial penalties and agree redress payments. Firms facing an investigation should preserve documents, take advice on privilege and engage early. Energy lawyers London businesses instruct can help frame the response and negotiate settlement where appropriate.
Supplier and counterparty insolvency is another recurring risk. When a supplier or contractor fails, the outcome turns on termination rights, security packages and the ipso facto restrictions introduced in 2020. Planning for that scenario at contract stage protects value later.
Cross-border energy work: Bangladesh, the Gulf, Asia and the EU
Energy is international by nature, and energy lawyers London investors rely on must understand both ends of a deal.
Bangladesh. Bangladesh's power and gas sectors rely on independent power producers, imported LNG and government offtake. UK-based sponsors, lenders and equipment suppliers often contract under English law with London arbitration. Our Dhaka office advises on local licensing, tariffs and enforcement, and our UK–Bangladesh trade and finance team links the two.
The Gulf. Gulf sovereign wealth funds and energy companies are significant investors in UK offshore wind, networks and storage. Their deals typically raise NSIA, merger control and co-investment governance questions.
China and Singapore. Chinese manufacturers supply much of the turbine, solar and battery equipment used in the UK, which raises supply chain, sanctions and security-of-supply questions. Singapore is a hub for Asian energy trading and finance, often using English law contracts.
The EU. Interconnectors and trading with the EU now operate under the UK–EU Trade and Cooperation Agreement rather than the internal energy market. The planned UK and EU carbon border mechanisms, and moves to link the two emissions trading schemes, matter for exporters of carbon-intensive goods. See our carbon markets page.
How TRW & Co's energy lawyers London team helps
We advise on transactions, regulation and disputes across the energy sector, working with our finance, real estate and disputes colleagues. Where advocacy in the higher courts is required, we instruct specialist counsel.
Project development
Land and seabed rights, grid connection strategy, consenting support and the contract structure needed to reach financial close.
Revenue contracts
CfD bids and compliance, corporate and utility PPAs, capacity market and flexibility contracts, and offtake for hydrogen and low-carbon fuels.
M&A and joint ventures
Buying and selling stakes in development and operating assets, due diligence, NSIA analysis, and shareholder arrangements for co-investors.
Finance
Project, portfolio and holdco financings for sponsors and lenders, alongside our banking and finance team, including green and sustainability-linked structures.
Regulatory advice
Licensing and exemption analysis, Ofgem engagement, industry code questions, and heat network authorisation under the new regime.
Energy disputes
Construction, supply and price review disputes in arbitration and the courts, and enforcement against overseas counterparties.
Explore our full practice list, including infrastructure, or speak to our London office.
Checklist for boards and investment committees
- Confirm grid connection status, readiness evidence and liabilities in the connection agreement.
- Check whether the project needs a development consent order, local planning permission or a section 36 consent, and the status of conditions.
- Decide the route to market and test the counterparty credit behind it.
- Run a licensing and exemption analysis for generation, supply and any private wire.
- Map change-of-control and assignment restrictions across all project documents.
- Assess NSIA notification requirements and build them into the timetable.
- Align dispute resolution clauses across construction, supply and interface contracts.
- Track 2026 reforms: connections, CfD AR8, planning reform, heat networks and carbon border measures.
Speak to energy lawyers London based with direct links to Dhaka, the Gulf and Asia before committing capital. Our team can review a project or portfolio and identify the issues that drive value.
Frequently asked questions
01Do I need a licence to generate electricity in Great Britain?
Generating electricity for supply requires either a generation licence from Ofgem or an exemption. Many smaller generators rely on class exemptions, but the analysis depends on capacity, export arrangements and who buys the power. Supplying electricity directly to customers, including over a private wire, raises separate supply licensing questions. Acting without a licence or exemption is a criminal offence under the Electricity Act 1989, so document the analysis and revisit it whenever the project configuration changes, for example when adding battery storage or new offtakers.
02How has grid connection reform affected projects?
Ofgem gave NESO powers to move away from a first-come, first-served queue towards one ordered by project readiness and alignment with strategic plans. NESO said only around a third of projects seeking connection were expected to receive a firm offer. Projects without evidence of land rights and progress risk losing their position or receiving later dates. Investors now treat connection status as a core diligence item, and sale agreements increasingly allocate connection risk through conditions and price adjustments.
03What is a Contract for Difference?
A CfD is a private law contract between a low-carbon generator and the Low Carbon Contracts Company. The generator sells power in the market and receives top-up payments when the market reference price is below an agreed strike price, but pays back when it is above. Contracts are awarded in competitive allocation rounds run by NESO. AR7 results were published in January and February 2026, with longer 20-year terms for key technologies, and AR8 opened for applications in July 2026.
04Is the UK still issuing oil and gas licences?
The government has said it will not issue licences for new exploration, but in November 2025 it confirmed that new licences may be granted for production that ties back to existing fields and infrastructure without new exploration. The Energy Profits Levy remains in place until March 2030. The North Sea Transition Authority regulates licences, assignments and field development, while DESNZ handles environmental regulation of offshore activity. Decommissioning obligations remain a key issue in any acquisition.
05Does buying a UK energy company need government clearance?
Possibly. Energy is one of the sensitive sectors under the National Security and Investment Act 2021, and acquiring control of a qualifying energy entity can trigger mandatory notification before completion. Completing without clearance makes the deal void and can lead to penalties. Merger control may also apply, and many project documents require counterparty consent to a change of control. Analyse all three early and build them into the deal timetable.
06How does Bangladesh connect with UK energy work?
UK sponsors, lenders and equipment suppliers are active in Bangladesh's power and gas sectors, often contracting under English law with London arbitration. That means disputes and financings can be run from London while local licensing, tariff and enforcement questions are handled in Dhaka. TRW & Co's London and Dhaka offices work together on these matters, including enforcement of London arbitration awards in Bangladesh.
07What changes are coming in 2026 and 2027?
Key developments include phased implementation of the Planning and Infrastructure Act 2025 during 2026, the CfD AR8 allocation round, continuing grid connection reform, Ofgem's regulation of heat networks from January 2026, and a UK carbon border adjustment mechanism due to apply from 1 January 2027. The Review of Electricity Market Arrangements kept national pricing, but reforms to network charging and dispatch continue. Check current guidance before relying on any timetable.
Sources and official materials
- Electricity Act 1989 — Licensing framework for the electricity sector
- Energy Act 2023 — NESO, CCUS, hydrogen and heat network regulation
- Clean Power 2030 Action Plan — Government plan for a clean power system by 2030
- Ofgem — Gas and electricity markets regulator
- National Energy System Operator — System operation, connections and CfD delivery
- North Sea Transition Authority — Offshore oil, gas and carbon storage regulator
- Planning and Infrastructure Act 2025 — Reforms to infrastructure consenting
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.