As the renewable energy sector expands, significant storage capacities are necessary to ensure that the demand for electricity is met even during dark and windless periods. Large battery systems are a particularly interesting and efficient technology to help solve this problem. During the event “Latham Infra Circle: The Future of Battery Storage in Germany”, Latham Energy & Infrastructure Practice partner Alexander Stefan Rieger spoke with Walter Raizner (GESI Giga Batteries) and Steffen Schülzchen (Entrix GmbH) about the continuous market ramp-up for large batteries in Germany and related opportunities for infrastructure investors. For more insights on the future of energy transition in Germany, read their conversation.
Nuclear power is attracting growing interest in the energy and investment sectors, driven by the rising global demand for low-carbon energy and the growth of artificial intelligence (AI). While the development of traditional nuclear reactors at scale involves particular challenges due to regulatory and permitting issues, long build times, and capital intensity of these projects, small modular reactors (SMRs) are receiving increased government support as well as attention from investors and financiers, drawn by the scalability and potentially lower financial risk. For an overview of SMRs and the financing and bankability of nuclear projects, read this blog post.
The UK government is intensifying its efforts to combat economic crime, with a new “failure to prevent fraud” offence set to come into force on 1 September 2025. The new offence means that a “large” organisation will be criminally liable if one of its “associated persons” (including employees and agents) commits fraud intending to benefit the organisation directly or indirectly. A defence will be available if the organisation had “reasonable” fraud-prevention measures in place at the time.
Key points:
The new legislation provides additional tools for UK prosecutors to hold organisations accountable for criminal wrongdoing. In this environment, it is key for companies to implement and maintain compliance measures proportionate to their risk level to mitigate enforcement risk. For a more detailed overview of the new legislation and the importance of anti-fraud measures for corporates, read this blog post.
Throughout 2024, the development of the ESG and sustainability landscape was dynamic. We anticipate that this dynamism will intensify in 2025, given the implementation and potential amendment of ESG-related regulations and significant geopolitical developments around the globe. Companies, investors, and asset holders will need to remain agile and informed to respond adequately to these trends, while navigating the energy transition, greater scrutiny of value chains, and the “greenlash”. Integrating and balancing sometime competing ESG and sustainability into corporate, sponsor, fund, and entity strategies and operations will require ever more sophistication and careful consideration, particularly from directors and senior managers responsible for oversight of such matters. For more ESG and sustainability insights, read this article.
The Minerals Security Partnership Finance Network (MSPFN) was announced in September 2024, by the US, the European Commission, the UK, Canada, Japan, Australia, and other nations at the United Nations General Assembly. This initiative aims to diversify supply chains and combine funding sources to support critical minerals (CMs) projects essential for the energy transition. Critical minerals, such as copper, lithium, and cobalt, are vital for renewable technologies like electric vehicle batteries and solar panels. The demand for these minerals is expected to rise significantly to meet net zero targets.
The MSPFN, a US-led initiative, builds on the Minerals Security Partnership established in 2022 to secure and sustain CM supply chains. It addresses concerns over China’s dominance in CM production and processing, particularly in rare earth elements. The initiative seeks to provide greater access to debt financing for CM projects, addressing issues like low metal prices and ESG concerns that have reduced traditional investment in mining. The MSPFN includes members from various countries’ export credit agencies (ECAs) and development finance institutions (DFIs), aiming to facilitate additional commercial bank financing and private capital for CM projects. ECAs and DFIs play a crucial role in providing credit to projects in resource-rich emerging markets, often facing higher risks. The MSPFN seeks to offer competitive financing to compete with Chinese financiers in these markets.
Initial reactions to this new financing initiative are positive, with expectations that enhanced collaboration and financial support will be needed to meet future CM demand. The success of the initiative in enhancing investment for CM projects remains to be seen. For more on the MSPFN, read this blog post.
Should you have any questions or would like further information on any of these topics, please do not hesitate to reach out to our European Energy & Infrastructure team.