Powering tomorrow Navigating the energy transition landscape 2024 - Flipbook - Page 7
Critically, energy security isn’t just about
sustainability. It means generating enough
power to meet demand and having su昀케cient
infrastructure to deliver that power to where
it’s needed.
Generating renewable energy requires
permitting, which can take years. Connecting it
to the grid is a key hurdle: in the U.S. alone, over
2 terawatts of generation and storage, largely
from zero-carbon resources, remains stuck in
interconnection queues. Shifting the location of
energy generation also creates new transmission
challenges. And, planning is essential to maintain
energy security when phasing out fossil fuels—
for example, by ensuring that infrastructure
isn’t retired too early.
In light of these issues, stakeholders must keep
a close watch on geopolitical and technological
developments, including:
• How will Western countries lessen their
reliance on Chinese supply chains?
• Will the U.S. support natural gas production
long enough such that long-term commercial
agreements will be worthwhile to pursue?
• How can developing nations be better
supported 昀椀nancially in their need for secure
energy supply?
• How are market practices and investment
regimes developing globally to support
new green technologies (e.g., carbon capture
and storage)?
• What new cybersecurity and privacy risks
come with clean energy infrastructure (e.g.,
digitization of the grid)—and will there be
government incentives to help defend
against attacks?
Taking advantage of IRA tax credits can have
long-term bene昀椀ts for many organizations but
might involve higher costs in the near term.
New mining projects may fuel the development
of renewable energy technology, but will also
pose new environmental, social, and governance
issues in developing nations. Similarly, building
new wind and solar generation capacity has,
in some cases, pitched backers of sustainable
energy against those seeking to preserve
natural lands. Reliance on fossil fuels and
natural gas will also persist for years, as factors
such as the war in Ukraine, volatile pricing,
and infrastructure around renewables make
long-term planning di昀케cult.
Ultimately, the clean energy transition will take
decades—and will look di昀昀erent for each country.
Now is the time for nuanced discussions that
account for this extended timeline, as well as the
many changes in this rapidly evolving landscape.
‘‘
The firm is responsive to the client’s
needs. The firm has a depth of
knowledge – both commercial and
legal – within the sector and due to
the depth of its team they can be in
a position to give comprehensive
all-round advice.
‘‘
Energy security is about sustainability,
generation, and transmission
Infrastructure, Project Finance and Development,
Legal 500 UK, 2024
The reality is that tradeo昀昀s will need to be made.
Hogan Lovells | Powering tomorrow: Navigating the energy transition landscape
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