Long-Term Energy Contracts and the Regulatory Changes: Case Law from Court of Justice of the European Union and the Supreme Court of United States
Article from: OGEL 2 (2011), in Comparative Energy Law
Introduction
Long-term energy contracting carries certain inherent risks. These risks stem from issues like high financial stakes involved and the long-term nature of the deals. The latter risk factor includes both an economic risk (due to future demand and availability risk) and a political risk (which transforms into potential changes in the investment climate). Long-term projects are also subject to a large number of other risks such as hidden protectionism, sustainability risk, construction risk, exchange risk, environmental risk, and so on. Due to their long-term nature, ...