CMS Cameron McKenna has been advising on power projects for over 25 years all around the world.
Complete Service
Not simply brought in to draft power purchase agreements and tolling agreements, we have advised on structuring power projects, starting with a detailed risk matrix (our own proven matrix design) to drafting and negotiating PPAs, EPC contracts, fuel supply agreements, connection agreements, O&M contracts, all the financing agreements and security documentation that would be required to finance the project on limited recourse financing basis.
Our detailed understanding of the different segments of the electricity industry allows us to provide comprehensive advice and identify the risks that developers, offtakers and lenders would focus on and mitigate.
Our work has taken us to Malaysia, India, the Philippines, Jordan, Mauritius, Russia, Portugal, a number of Central Eastern European countries, Greece, the UK and Ireland, amongst others.
- Global track record
- Cutting edge experience of all agreements required in a power project
- Technical understanding and documentation of tariff calculations
- Wide variety of client types
A diverse client base
We have acted for all the participants in a power project, including lenders, contractors, off-takers, governments, fuel suppliers, and also regulators. We have scored many successes in creating bankable power projects that have been built. We well understand the concerns of the off-taker and the constraints on a single buyer of maintaining a stable and reliable transmission system. We regularly advise developers and offtakers on suitable risk allocations that would make the project bankable and would also be acceptable to off-takers/single buyer, which we then reflect in contracts we draft and negotiate.
Technical and Tariff understanding
The team understands the technical side of operation of a power station and transmission system operations. We draft and advise on operating procedures, minimum functional specifications and dynamic parameters, outage planning processes, testing procedures and metering rules.
Because of our understanding of different types of tariffs and the algebra, we regularly assist with documenting the detailed tariff calculations (and the algebra) so as to reflect the commercial elements and risks of sale and purchase of capacity and electrical energy in the transaction documents.
We have advised on plants of all fuel types and had advised extensively on commercial arrangements and risk allocation with issues specific to the fuel types.
Financing Power Projects
We have a proven track record of advising sponsors on bringing power project financings to a successful financial close in emerging markets, as well as in the developed world. In the current stressed conditions in the financial markets, it is essential to have legal advisers who have credibility with financial institutions in developing bankable finance structures. We have a track record of advising lenders, as well as sponsors on power projects in demanding jurisdictions. Our project finance practice is complemented by our international tax practice to help structure transactions to overcome difficulties faced in some emerging markets.
We have also worked with a number of governments and their respective agencies and institutions, where the delivery of a stable, bankable structure to secure debt and equity financing played a major part in the success of the transaction. In several cases, the transaction ultimately included one or more of the above institutions, with our role typically involving the development and implementation of such bankable structures.
Over the years, we have acted for or alongside a large number of multilateral development organizations, export credit agencies, regional development banks and other government-owned financing parties.