BT-REQ-4413 EU-UK Renewables thought leadership V1 RL V6 (2) - Flipbook - Page 3
Here are the top challenges to getting projects off the ground:
1) Procurement requirements, trade
remedies, and trade defense.
European renewable energy procurement is
moving away from price-based bidding to
include criteria like minimum thresholds for
locally made content and limits on what can be
supplied from a third country.
The EU is imposing limits on Chinese-sourced
content in public tenders for certain net-zero
products (e.g. battery and energy storage
technologies, solar and wind technologies), for
example, and also deploying trade-defense tools
and the Foreign Subsidies Regulation (FSR) to
address concerns about subsidized Chinese
green tech.
Broad definitions and limited guidance make it
tough for developers and investors to anticipate
how regulators may evaluate individual deals.
3) National security and export controls.
FDI screening regimes are a significant factor for
renewables projects across Europe – especially
those involving joint ventures with Chinese
companies.
In the UK for example, legislation such as the
National Security and Investment Act 2021 and
the Procurement Act 2023 can materially affect
renewable energy transactions by introducing
mandatory government notification and review
requirements, expanding the circumstances in
which public authorities may scrutinize or
intervene in deals and imposing additional
transparency and information sharing
obligations on participants.
In France and Spain, renewable energy projects
with non-EU backers may be reviewable by
regulators at investment levels as low as
10 percent or 5 percent, respectively.
Hogan Lovells is very well connected in the trade
world and distinguishes itself by knowing the
very data-intensive, technical aspects of these
cases and providing guidance on how to respond.
- Client testimonial, International Trade/WTO,
Chambers Global, 2026
2) Supply chain compliance.
In recent years, EU and UK regulators have
placed a strong focus on sustainability and
human rights issues such as forced labor,
especially with respect to critical minerals and
solar procurement.
The German Supply Chain Act, for instance,
requires companies to actively monitor and
mitigate human rights and environmental risks
within their respective supply chains, as does the
UK’s Modern Slavery Act. Consequently,
renewables projects may face restrictions on
certain imports, including solar photovoltaic and
wind turbine parts, as well as some large-scale
energy battery storage technology.
