With global demand for power generation expected to double by 2025, the liberalizing, deregulating and increasingly competitive energy markets present many new opportunities and risks.
Comprehensive Power Industry Coverage
Reed Smith is a principal advisor in the trading and marketing of all major power and energy-related commodities and products. When it comes to depth of industry knowledge and scope of power sector expertise, we are the leading global corporate and commercial practice in:
- Electric power & capacity
- Power generation infrastructure projects
- Natural gas, gas liquids, and liquefied natural gas (LNG)
- Coal and other feedstocks
- Crude Oil
- Refined fuels, bulk chemicals & other derivative products
- Carbon and other greenhouse gas (GHG) emission allowances
- Nitrogen and sulphur dioxide emission allowances
- Renewable energy credits and green certificates
- Energy commodities derivatives
- Weather derivatives
We advise utilities, developers and contractors on the procurement, construction and operation of a variety of power projects around the world, including coal- and gas-fired, nuclear, hydro and other renewable energy schemes.
Samples of our work include:
- Representing a European government in the award of a concession for the construction of a $1 billion cascade hydro power scheme
- Representing European utilities in schemes for the introduction of FGD (Flue Gas Desulphurisation) units to existing coal-fired power stations
We understand the underlying markets and regulation, and are the global leader in contractually allocating and hedging specific risks inherent in their purchase, sale, production, transportation and storage. Our experience includes:
- Physical Energy Trading - development of industry standard master trading agreements for physical wholesale power and natural gas in Europe and the United States. We are principal outside counsel to the European Federation of Energy Traders (EFET), an active member of the Edison Electric Institute (EEI), and have played a key role in development of both the North American Energy Standards Board (NAESB) agreement, and its predecessor, the Gas Industry Standards Board (GISB).
- Financial Trading & Hedging - advised numerous International Swaps and Derivatives Association (ISDA) working groups and committees across gas, power, freight and coal, and other products. We also serve on the Users' Group for the FEMA Agreement developed by the Nordic Association of Energy Traders (NAET).
- Auctions of Natural Gas and Electricity - advising on required documentation to manage legal and credit risk in relation to public auctions of natural gas, and developed highly flexible credit and contractual frameworks for use in European public auctions of electricity generating capacity
- Exchange Trading - advised on membership access agreements and the purchase of seats on all major global energy commodity exchanges, including NYMEX, CBOT, KCBT, ICE, IPE, UKPX, NordPool Power Exchange, EEX, APX, Powernext, and EXAA. We have also advised Powernext and Clearnet on revision of their terms for spot and derivatives documents.
- Electronic Trading Systems - addressing trading on all of the major futures exchange-operated, real-time and after-hours trading systems. Our media and regulatory lawyers enable us to stay ahead of changes in the laws and regulation of the traditional contract markets, as well as the newer electronic energy trading systems.
- Retail Sales and Purchases, and Long-Term Supply Agreements - developing an array of agreements to meet the needs of both end-use energy customers and those marketing to them.
- Balancing, System Access Power Pool and Interchange Agreements - familiar with all major membership and participation agreements
- Other Credit Instruments - our full range of experience is too wide to list here, but includes areas such as fuels management, PPA and tolling agreements; utility power sales tariffs; and regulation of traded markets
A Trusted Adviser to Clients of All Sizes, Types and Geography
Reed Smith positions itself at the forefront of power industry development through its innovative client-focused solutions.
We help clients of all sizes and scope navigate an increasingly deregulated environment, maximize market opportunity and mitigate risk - whether they are a major trading company, a new entrant in the rapidly growing and complex energy marketing field, a utility grappling with volatile market forces, or an established player in the physical or financial markets looking to expand or diversify. We have also advised energy consumers such as industrial and power generation clients on domestic and foreign energy acquisition strategies and procedures.
Our global power team has experience in complex transactions and formation of ventures in North America, Europe, Asia, Africa, Latin and South America, and the Pacific Rim, and has advised some of the most sophisticated energy corporations in the world:
- The American, European and Asian energy, marketing, trading, procurement and risk management arms of large investor-owned utilities
- Fortune Top 20 integrated petroleum companies, independent power companies, pipeline operators, power transmission system operators (TSOs), and gas distribution companies
- Financial trading houses, investment banks and futures exchanges, industry trade associations, state-owned and municipal energy companies, marketing partnerships and JVs (joint ventures), wholesale and niche retail players, risk managers, and regional independent energy producers