Energy industry

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The energy industry is undergoing a transformation. The energy sector with public utilities and energy suppliers active on the market are faced with complex future challenges. While in recent years the sector was focused on coping with and implementing the new German Energy Industry Act and the resulting regulation of the energy markets, the focus has now switched to implementation of the energy policy turnaround of the German government which is no less important.
 

For 15 years Rödl & Partner has been a leading firm for legal and management consulting in the energy industry for the complete value chain from power generation to power grids and distribution. Our energy industry experts and lawyers for energy law are there to support you with their international experience.
 

Changing market fundamentals require new methods in the energy industry

Due to the constant change of the energy industry, energy providers and public utilities have found themselves in a process of change not seen before. Regulation and competition have led to the need for new business models. Therefore new strategies for the future have to be defined and new business areas have to be developed to secure declining profits from the grid and distribution through future-oriented strategies. In addition, due to the market situation, public utilities will increasingly have to work with other companies or look for a strategic partner via cooperation agreements or transactions.
 
Whether the situation involves the takeover of grids through new licenses or, for example, the establishment and expansion of energy distribution systems and cogeneration plants, the market conditions to generate additional revenues through this are excellent. All these challenges in the energy industry, however, also mean that the organisation and internal processes have to be redefined and adjusted as well as having to fulfil compliance requirements.
 

Cost pressure in the energy industry is leading to a change in controlling and corporate control

Increasing cost pressure brought about by the changed market conditions in the energy industry now also requires the adjustment of controlling instruments. Efficient corporate control is indispensable in the area of power generation, grid operations and distribution.
 

German energy policy turnaround has changed generation structures

The energy policy turnaround in Germany has led to decentralised power generation structures in the energy industry. Renewable energy is the winner. New methods have to be found to finance the not insubstantial investment plans. This can, for example, also be achieved through new financial models such as public participation. We can assume that there will be a fundamental reform of the current German Renewable Energy Act in the near future.
 
The revenue potential and the resulting rate of return will probably change permanently. Market integration via direct marketing models will, also due to the increasing competitiveness in the field of renewable energy, have a greater role to play. This will mean that in future renewable energy projects will have to be implemented strictly under economic criteria. In turn professional project management will also require compliance with the respective legal and environmental conditions.
 

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