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By Paul Davies, Fiona Maclean and Stuart Davis

Blockchain is more widely recognised as the underlying software technology usedVirtual Currency B - Single for the cryptocurrency Bitcoin. This technology is also being increasingly applied to alternative opportunities, including in the energy sector. In its simplest form, a blockchain is a shared, and continually reconciled, database. No central repository of the database exists and, instead it is hosted simultaneously across a network of computers or nodes. This means that each participant in the network has real-time access to a “golden source” of the data stored on the database without the need for trusted intermediaries and costly data reconciliation. Automated code-based processes called “smart contracts” can run off, interact with and update the database in a way that would not be possible without a golden source of data and real-time reconciliation. In the energy sector, this technology can be used to provide an automated transaction model with no or limited third-party intermediaries (as compared to the traditional transaction model which is multi-tiered, involving a provider, a central authority such as the National Grid and the consumer). Blockchain’s ability to track the flow of electrons on a distributed grid, for example, enables their secure and transparent trade between consumers directly. The advent of blockchain could fundamentally change the way consumers use and generate electricity.

An early adoption of blockchain in this context is TransActive Grid, a peer-to-peer distributed energy offering based in Brooklyn. TransActive Grid, amongst other things, enables consumers to buy and sell renewable energy directly to each other by utilising blockchain technology. Homes producing their own energy through solar power, can sell excess energy to neighbours. Smart meters are used to record the level of energy produced, with transactions being effected and recorded through smart contracts. There are also plans to develop an application for consumers so that any excess electricity can be traded efficiently, with consumers specifying the price they are willing to pay. This has opened up a peer-to-peer market which facilitates direct interaction between consumers and it is hoped that this will develop into a local community market for renewable energy. Grid Singularity, based in Austria, is planning to bring a similar, decentralised electricity market to developing countries, to distribute solar power.

By Paul Davies, Antonio Morales, Jörn Kassow, Joachim Grittmann and Cesare Milani

The year ahead presents a series of challenges and opportunities for the development of environmental law across Europe. Notably, the Paris Agreement came into effect on 4 November 2016 and is now binding upon the signatory countries. The European signatory countries will therefore be focusing their efforts on preparing and implementing their plans to meet their Nationally Determined Contributions in accordance with the Agreement. How countries go about this will be key for 2017.

It also means that the EU’s introduction of the Winter Package, will likely intensify the spotlight on energy efficiency in the year ahead. The new European legislation promotes prioritising energy efficiency across the board as being key to facilitate the transition to a low-carbon economy and in turn, therefore helping to achieve some of the Paris Agreement objectives. We will also need to continue to track the impact of Brexit in respect of regulatory developments in the UK and Europe.

Finally, there are some interesting developments in the context of biodiversity, which could pose challenges for new projects in France.

In this context, we have set out key highlights below.

By Antonio Morales and Leticia Sitges

Last month, the European Commission presented a package of measures, known as “the Winter Package”, to strengthen the EU’s competitiveness in adopting and leading the clean energy transition. In addition to promoting energy efficiency, the clean energy transition will continue to offer a wide range of investment opportunities. During 2015, the clean energy field attracted a record global investment of over €300 billion, six times the investment secured in 2004.

By Paul Davies and Michael Green

France adopted an ambitious energy transition package in August 2015 that sets out various targets designed to achieve the gradual de-carbonisation and increased sustainability of its economy.

The package includes consumption reduction targets, energy production cuts and provisions for a long-term programming scheme for public authorities to manage the country’s energy mix.

The Objective

Consistent with the EU’s energy strategy, France’s objective is to:

  • reduce its energy consumption by 50 percent by 2050 (with reference to 2012 energy consumption levels)
  • achieve an intermediate target of an overall 20 percent reduction by 2030
  • reduce fossil fuels consumption by 30 percent by 2030

In parallel, and perhaps more controversially, France aims to significantly reduce its production of nuclear electricity. France currently sources 75 percent of its electricity from nuclear energy – the highest worldwide – and is targeting a one third reduction of its nuclear energy sourcing by 2025.

By Michael Gergen and Eli Hopson

On July 3, 2014, the United States Department of Energy’s (DOE) Loan Programs Office issued a new “Renewable Energy and Efficient Energy” solicitation for loan guarantees. DOE issued the Renewable Energy and Efficient Energy solicitation under Title XVII of the Energy Policy Act of 2005 and its implementing regulations under 10 C.F.R. Part 609. The solicitation states that DOE will support as much as $4 billion in loan guarantees (direct authority to issue approximately $2.5 billion in guarantees and remaining appropriations of $169 million to cover credit subsidy costs – estimated to support some multiple amount of guarantees).

By Janice Schneider, Andrea Hogan, and Adam Thomas

We analyzed the President Obama’s recent Memorandum aimed at modernizing and expanding the nation’s electric transmission grid on federal lands.[1] The memorandum, which also garnered a mention in the President’s newly announced Climate Action Plan, is another tool being used by President Obama to move the country towards the President’s goal of doubling domestic renewable electricity by 2020.