Power Generation, Transmission and Distribution 2026

Definitive global law guides offering comparative analysis from top-ranked lawyers

CHAMBERS GLOBAL PRACTICE GUIDES

Power Generation, Transmission & Distribution 2026 Definitive global law guides offering comparative analysis from top-ranked lawyers

Contributing Editor David P. Flynn Phillips Lytle LLP

Global Practice Guides

Power Generation, Transmission & Distribution

Contributing Editor David P. Flynn Phillips Lytle LLP

2026

Chambers Global Practice Guides For more than 20 years, Chambers Global Guides have ranked lawyers and law firms across the world. Chambers now offer clients a new series of Global Practice Guides, which contain practical guidance on doing legal business in key jurisdictions. We use our knowledge of the world’s best lawyers to select leading law firms in each jurisdiction to write the ‘Law & Practice’ sections. In addition, the ‘Trends & Developments’ sections analyse trends and developments in local legal markets. Disclaimer: The information in this guide is provided for general reference only, not as specific legal advice. Views expressed by the authors are not necessarily the views of the law firms in which they practise. For specific legal advice, a lawyer should be consulted. Content Management Director Claire Oxborrow Content Manager Jonathan Mendelowitz Senior Content Reviewers Sally McGonigal, Ethne Withers, Deborah Sinclair, Stephen Dinkeldein, Vivienne Button and Sean Marshall Content Reviewers Lawrence Garrett, Marianne Page, Heather Palomino, Alison Moore, Adrian Ciechacki and Michael Irvine Content Coordination Manager Nancy Tsang Senior Content Coordinators Carla Cagnina and Delicia Tasinda Content Coordinator Joanna Chivers Head of Production Jasper John Production Coordinator Genevieve Sibayan

Published by Chambers and Partners 165 Fleet Street London EC4A 2AE Tel +44 20 7606 8844 Fax +44 20 7831 5662 Web www.chambers.com

Contents

INTRODUCTION Contributed by David P. Flynn, Phillips Lytle p.5 AUSTRALIA Law and Practice p.8 Contributed by Clayton Utz Trends and Developments p.30 Contributed by Clayton Utz BANGLADESH Trends and Developments p.35 Contributed by Farooq and Associates BOLIVIA Trends and Developments p.42 Contributed by Dentons Guevara & Gutiérrez

JAPAN Law and Practice p.163 Contributed by Nagashima Ohno & Tsunematsu Trends and Developments p.184 Contributed by Mori Hamada

KENYA Law and Practice p.192 Contributed by EMSI & Asssociates

MEXICO Law and Practice p.209 Contributed by Cortés Quesada Abogados, S.C. Trends and Developments p.227 Contributed by Cortés Quesada Abogados, S.C.

MIDDLE EAST Trends and Developments p.233 Contributed by King & Spalding LLP MOROCCO Law and Practice p.240 Contributed by Gide Loyrette Nouel

BRAZIL Law and Practice p.48 Contributed by Tauil & Chequer Advogados in association with Mayer Brown

Trends and Developments p.70 Contributed by Advocacia Bettiol CHINA Law and Practice p.77 Contributed by Zhong Lun Law Firm

POLAND Law and Practice p.260 Contributed by Sołtysiński Kawecki & Szlęzak Trends and Developments p.278 Contributed by Sołtysiński Kawecki & Szlęzak

FINLAND Trends and Developments p.96 Contributed by Procopé & Hornborg Attorneys Ltd

PORTUGAL Trends and Developments p.285 Contributed by Fieldfisher Portugal ROMANIA Law and Practice p.290 Contributed by Suciu Partners

GERMANY Law and Practice p.102 Contributed by A&O Shearman Trends and Developments p.116 Contributed by A&O Shearman INDIA Law and Practice p.122 Contributed by JSA Trends and Developments p.142 Contributed by JSA INDONESIA Law and Practice p.149 Contributed by ABNR Counsellors at Law Trends and Developments p.160 Contributed by ABNR Counsellors at Law

SINGAPORE Law and Practice p.301 Contributed by Orrick, Herrington & Sutcliffe LLP Trends and Developments p.315 Contributed by Orrick, Herrington & Sutcliffe LLP

SOUTH KOREA Law and Practice p.321 Contributed by Shin & Kim Trends and Developments p.338 Contributed by Shin & Kim

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Contents

UAE Law and Practice p.343 Contributed by King & Spalding LLP

USA – NEW YORK Trends and Developments p.435 Contributed by Linklaters USA – TEXAS Trends and Developments p.443 Contributed by Troutman Pepper Locke VIETNAM Law and Practice p.450 Contributed by Orrick Trends and Developments p.466 Contributed by Orrick

UK Law and Practice p.362 Contributed by King & Spalding International LLP Trends and Developments p.381 Contributed by King & Spalding International LLP

USA Law and Practice p.389 Contributed by Phillips Lytle LLP USA – CALIFORNIA Law and Practice p.407 Contributed by Buchalter LLP Trends and Developments p.428 Contributed by Buchalter LLP

ZIMBABWE Law and Practice p.474 Contributed by Wintertons

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INTRODUCTION

Contributed by: David P. Flynn, Phillips Lytle

Phillips Lytle is a pre-eminent law firm with a fast- paced energy and renewables practice, providing cut- ting-edge expertise to developers, owners, utilities, pipeline and transmission companies, retail energy suppliers and financial partners involved in renewable and other energy projects across New York State and beyond. The firm’s extensive experience and knowl- edge allows it to complete projects on time and within budget. Its areas of energy and renewables expertise include siting (such as working with New York’s Office of Renewable Energy Siting and Electric Transmis- sion), zoning and environmental reviews; solar, wind and energy storage projects; brownfield and landfill

renewable energy projects; hydrogen projects; nu- clear projects; Public Service Commission (PSC) and regulatory compliance; incentives; PILOTs, bonds and public finance; power purchase agreements; solar leases; microgrids; hydropower; retail energy indus- try/ESCO enforcement and investigations; litigation; and dispute resolution. With the increased demand for energy expertise beyond the legal realm, the firm established Phillips Lytle Energy Consulting Services to help navigate the complex policies in the energy industry and provide guidance for project develop- ment, transactional support, energy policy, regulatory counselling and procurement consulting.

Contributing Editor

David P. Flynn is a partner at Phillips Lytle LLP. He is leader of the firm’s environmental law team, co-leader of the firm’s energy and renewables industry team, and a member of the firm’s data centre practice team. With

the licensing of hydropower projects. David regularly speaks on energy topics across New York State and has strong connections with major energy and energy-related organisations, including the American Council on Renewable Energy (ACORE), the Business Council of New York State, Inc, and Incubators for Collaborating & Leveraging Energy and Nanotechnology (iCLEAN).

respect to energy, he advises clients on the financing, development and siting of solar, storage, hydrogen, nuclear and wind projects, as well as on

Phillips Lytle LLP One Canalside 125 Main Street Buffalo New York 14203 USA Tel: +1 716 847 8400 Fax: +1 716 852 6100 Email: info@phillipslytle.com Web: www.phillipslytle.com

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INTRODUCTION Contributed by: David P. Flynn, Phillips Lytle

Transformation in the Power Industry We are pleased to present the Chambers Global Prac- tice Guide for Power Generation, Transmission and Distribution. Much is occurring in this dynamic space. A fundamental transformation of the electric energy and power industry is under way, and a number of things are driving change, growth and innovation. Technological advancement, new energy consumers such as data centres, engaged and educated cus- tomers, evolving regulatory requirements, economic impacts, and the constant reminder of significant cli- mate change are all driving growth and development in this space. As the market continues to evolve at a fast pace, the legal and regulatory systems are often driving some of these changes; at the same time, these same sys- tems are, in certain instances, in conflict and/or forced to play the difficult role of catch-up. That is certainly the case with the power industry. This Guide seeks to inform readers as to what various jurisdictions are doing to drive industry changes, respond to significant market evolution, and foster, encourage and manage the development of their energy resources. While change in the energy sector has always occurred, it has been at a much different pace and scale in recent years. While the primary driver in the evolution of this sector was once the unbundling/ deregulation of the utility industry, that has clearly changed. Though the unbundling of utilities continues, the legal and regulatory framework in many jurisdic- tions is also evolving to encourage – if not mandate – new non-carbon sources of electric energy as well as new entrants into the energy generation and transmis- sion market. Every indication is that this will continue, and most likely accelerate, in many jurisdictions. Legal and Regulatory Frameworks Today, many of the changes in the legal and regu- latory frameworks that pertain to the energy sector are impacted – if not driven by – unparalleled techno- logical change. While wind and solar generation have been around for many years, the scope and deploy- ment of these energy resources is approaching levels that require changes to the existing legal framework in place in many jurisdictions. In addition, emerging technologies, which are critical to addressing and

supporting efforts to decarbonise, are becoming more impactful. Things such as large-scale energy storage, hydrogen and even a potential resurgence in nuclear energy are all creating pressures on existing legal and regulatory frameworks. These changes are causing jurisdictions to adjust in order to respond to these new and/or emerging technologies. All of these changes – whether they relate directly to decarbonisation or to the further penetration of alter- native energy sources – impact the energy consumer. At the individual consumer level, this results in poten- tially significant impacts to power quality, increases in energy costs to facilitate and underwrite the increased electrification of our economies and expansion of electric transmission and distribution systems, as well as potentially more costly sources of energy genera- tion. The impacts to large energy consumers, such as large manufacturing operations and other energy- intensive businesses such as data centres, can be game-changers. For large industrial users of electric- ity, energy is tantamount to a raw material. An indus- try’s ability to manage potentially significant increases in cost over a relatively short period of time can have material consequences. Therefore, it is important for the legal and regulatory frameworks in the various jurisdictions that are aggressively moving forwards with decarbonisation and/or electrification to man- age the process, such that the costs do not escalate out of control or lead to unintended economic con- sequences. Decarbonisation Ongoing efforts to decarbonise the energy and power sector, together with a push to use renewable ener- gy resources to replace carbon-based generation, is creating both opportunity and tension across the globe. The opportunity is an almost limitless market to provide new and/or emerging technologies that do not rely on carbon or a carbon-based fuel to provide electric energy. There is also a very significant effort focused on further electrification of our economies and life – for example, transitioning from natural gas or coal as a source of heat, with an ever-increasing reliance on electric energy. This is creating incredible pressure on generation, transmission and distribution capabilities around the world.

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INTRODUCTION Contributed by: David P. Flynn, Phillips Lytle

Certain estimates of growth in the energy sector put this into some context. Growth in renewable energy (primarily solar and wind) may result in renewable energy generation representing almost 40% of all global energy generation by 2040. In certain jurisdic- tions, the penetration of renewables and other non- carbon-based energy sources could reach double that number. With the tangible impacts of climate change seem- ingly presenting themselves on an almost daily basis, with some notable exceptions, more countries are rec- ognising the need to decarbonise their economies. What could have been a more gradual transition is now taking on the feel of a crisis. This is forcing very significant (and costly) changes to occur in a very short period of time. It is also forcing the existing legal and regulatory frameworks and systems in many countries to evolve at a pace that is uncharacteristic for this sector. Consequently, it is imperative for those entities that are either impacted or involved in the decarboni- sation effort to use tools such as this Guide to better understand and facilitate the implementation of the decarbonisation efforts.

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AUSTRALIA

Australia

Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill Clayton Utz

Sydney

Tasmania

Contents 1. Structure and Ownership of the Power Industry p.10 1.1 Law Governing the Structure and Ownership of the Power Industry p.10 1.2 Principal State-Owned or Investor-Owned Entities p.11 1.3 Foreign Investment Review Process p.12

1.4 Sale of Power Industry Assets p.13 1.5 Central Planning Authorities p.14

1.6 Recent Changes in Law or Regulation p.14 1.7 Announcements Regarding New Policies p.16 1.8 Unique Aspects of the Power Industry p.16 2. Market Structure, Supply and Pricing p.16

2.1 The Wholesale Electricity Market p.16 2.2 Electricity Imports and Exports p.17 2.3 Supply Mix of Electricity p.17 2.4 Market Concentration Limits p.18 2.5 Surveillance to Detect Anti-Competitive Behaviour p.18 3. Generation Facilities p.19 3.1 Constructing and Operating Generation Facilities p.19 3.2 Obtaining Approvals to Construct and Operate Generation Facilities p.20 3.3 Approvals to Construct and Operate Generation Facilities p.20 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities p.21 3.5 Decommissioning a Generation Facility p.21 4. Transmission Lines and Associated Facilities p.22 4.1 Constructing and Operating Transmission Lines and Associated Facilities p.22 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities p.23 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities p.24 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities p.24 4.5 Monopoly Rights to Provide Transmission Services p.25 4.6 Transmission Charges and Terms of Service p.25 4.7 Open-Access and Non-Discriminatory Transmission p.26 5. Distribution p.26 5.1 Constructing and Operating Electricity Distribution Facilities p.26 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities p.27 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities p.27 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities p.28 5.5 Monopoly Rights for Electricity Distribution Entities p.28 5.6 Electricity Distribution System Charges and Terms of Service p.29

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

Clayton Utz is one of Australia’s leading, full-service law firms with over 170 partners and 1,300 employ- ees across offices in Melbourne, Sydney, Canberra, Brisbane, Perth and Darwin. As a key player in many of Australia’s most significant and sophisticated re- newable energy projects, the firm’s Tier 1 multidis- ciplinary energy team is alive to the issues and chal- lenges facing companies in the renewables sector,

and works every step of the way to navigate the in- dustry’s growing complexity within the country. Clay- ton Utz counsels project proponents, governments, commercial and industrial customers, and regulators across the full spectrum of renewable energy, power, utilities, hydrogen, and oil and gas, and offers advice across the full energy project life cycle and transac- tions, from generation and transmission to retailing.

Authors

Alexander Danne is head of energy at Clayton Utz, with over 20 years’ experience advising on some of Australia’s most complex energy and infrastructure transactions, as well as on project development and M&A.

Rohit Venkat is a senior associate within Clayton Utz’s energy and resources practice. He is a dual- qualified lawyer, admitted to practice in Australia and India, with over ten years’ experience advising on

Recognised for his project, project finance, construction and energy expertise, Alexander is widely regarded as one of Australia’s leading practitioners in project structuring and delivery, working across both M&A and development transactions. He acts primarily for developers, utilities, and infrastructure investors across all stages of energy projects, from early development and contracting through to financial close, and on dealings with regulators.

complex matters in the construction, energy and infrastructure sectors. His cross-border expertise, developed through extensive work across multiple jurisdictions – including India, New York and Australia – gives him a distinctive international perspective and a deeply commercial approach to the challenges facing project stakeholders. His practice encompasses the full life cycle of energy and infrastructure projects, with particular strength in project structuring, risk allocation and the drafting and negotiation of project documents.

Roy Groom is a special counsel within Clayton Utz’s energy and resources practice. He is a project and construction lawyer with experience helping clients to deliver and operate complex energy

Georgia Summerhill works within Clayton Utz’s energy and resources practice. Before joining the firm, she gained experience working in the energy sector at BP, acquiring an understanding of the commercial and

infrastructure. Roy works across large-scale solar, wind, battery, transmission and distribution projects, as well as across pipelines and broader industrial assets, supporting clients from early structuring and procurement through to construction, performance and long-term optimisation.

operational aspects of the industry. Georgia coordinates the team’s knowledge management initiatives at Utz, contributing to the development and maintenance of the practice’s internal resources and precedent materials. She has also been involved in matters relating to the acquisition of renewable energy assets and the regulatory and commercial frameworks surrounding such transactions.

CHAMBERS.COM

AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

Clayton Utz Level 15 1, Bligh Street Sydney NSW 2000 Australia

Tel: +61 2 9353 4000 Fax: +61 2 8220 6700 Email: adanne@claytonutz.com Web: www.claytonutz.com

1. Structure and Ownership of the Power Industry 1.1 Law Governing the Structure and Ownership of the Power Industry Australia’s power industry is structurally separated across four distinct segments: generation, transmis- sion, distribution and retail. Given the country’s geographical scale, three separate wholesale electricity markets operate concurrently: the National Electricity Market (NEM), the Northern Territory Electricity Market (NTEM) and the Wholesale Energy Market (WEM). The NEM is one of the world’s longest interconnected power systems, spanning the eastern seaboard and connecting New South Wales, the Australian Capital Territory, Queensland, South Australia, Victoria and Tasmania. Electricity generated in these regions is dispatched and traded between them. The WEM is located in Western Australia. There are smaller networks in remote areas, including the North West Interconnected System (NWIS) in the Pilbara and the Northern Territory Electricity Market (NTEM), and they account for less than 5% of Aus- tralia’s electricity consumption. Principal Laws Governing Ownership and the Structure of the Industry Electricity As a federation, Australia’s energy market is governed by a combination of national and state or territory laws, the application of which varies by jurisdiction.

NEM jurisdictions The NEM operates under a nationally harmonised legislative framework. The principal legislation is the National Electricity Law (NEL), scheduled to the National Electricity (South Australia) Act 1996 (SA) and adopted in each participating jurisdiction through cor- responding application Acts. The NEL is supplemented by the National Electricity Rules (NER), made under the NEL by the Australian Energy Market Commission (AEMC). The NER pre- scribe detailed regulatory requirements for market participants, network service providers and system operation. The retail segment is separately legislated under the National Energy Retail Law (NERL), scheduled to the National Energy Retail Law (South Australia) Act 2011 and adopted in each participating jurisdiction through corresponding application Acts. The NERL regulates the supply and sale of both gas and electricity and is supported by the National Energy Retail Rules (NERR). Victoria has not adopted the NERL but is instead gov- erned by the Victorian Energy Retail Code, which per- forms a substantially similar function. While the NEM is underpinned by the national laws described above, each state and territory also pass- es specific application legislation to implement the national framework, alongside localised provisions addressing retail pricing, connections and consumer protections.

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

Western Australia ( WA ) and Northern Territory ( NT ) In Western Australia, the electricity sector is governed by the Electricity Industry Act 2004 (WA) and the Elec- tricity Networks Access Code 2004. The Northern Ter- ritory operates under the Electricity Reform Act 2000 (NT). Gas The National Gas Law (NGL), set out in a schedule to the National Gas (South Australia) Act 2008 (SA), together with the National Gas Rules made under the NGL by the Australian Energy Market Commission, regulates access to, pricing of, and operation of natu- ral gas pipelines and markets. This provides a uniform national framework across Australia. Western Australia has modified the NGL and NGR through the National Gas Access (WA) Act 2009 (WA), which precludes the automatic adoption of NGL amendments and designates the Economic Regula- tion Authority as the regulator of its gas market. WA’s retail and wholesale gas market is primarily regulated by the Energy Coordination Act 1994 (WA). Ownership and Market Governance The generation, transmission, distribution and retail segments of the NEM are structurally unbundled, with each transmission and distribution network operat- ed by separate entities to promote competition and prevent cross-subsidisation. Ownership across the industry comprises a combination of state-owned and private investor-owned entities. State-owned corpo- rations remain prominent in Queensland, Tasmania and Western Australia. In the Northern Territory, the electricity supply chain is predominantly government- owned, with Power and Water Corporation and its subsidiary Territory Generation operating generation, network and retail functions. New South Wales, Vic- toria and South Australia have undergone significant privatisation of transmission and distribution assets. The generation sector is highly competitive, with government-owned corporations, large vertically inte- grated gentailers (companies that both generate and retail electricity) and independent renewable energy developers all participating across the NEM. The structural composition of these segments varies across jurisdictions, reflecting differing approaches to

public and private ownership, but all operate within the constraints of National Competition Policy frame- works. The day-to-day operation, governance and access arrangements of the market are overseen by three key national institutions as follows. • The Australian Energy Market Commission ( AEMC ): The AEMC is the independent rule-making body responsible for developing and amending the energy rules that govern market operation and network regulation. • The Australian Energy Regulator ( AER ): The AER is established under the Competition and Consumer Act 2010 (Cth). It enforces compliance with the energy rules and undertakes economic regulation of natural monopoly network businesses (transmis- sion and distribution infrastructure). • The Australian Energy Market Operator ( AEMO ): The AEMO is responsible for managing power system security and reliability across the NEM and WEM and for operating the wholesale spot market through which electricity is dispatched and settled. 1.2 Principal State-Owned or Investor-Owned Entities The principal entities owning and operating electricity infrastructure across Australia are as follows. Generation There is no single national registry for electricity gen- eration licences in Australia as licensing is managed at state level. The two largest NEM registries are the Essential Services Commission of Victoria and South Australia. Generators taking part in the broader whole- sale market need to register with the Australian Energy Market Operator (AEMO). The largest retailers as listed below by reference to the jurisdictions in which they mostly operate: • NSW : Predominantly private – Origin Energy, AGL, and the Commonwealth-owned Snowy Hydro Limited. • VIC : Privately owned – AGL, EnergyAustralia (Yal- lourn) and numerous wind and solar operators. • QLD : Mixed – state-owned Stanwell Corporation, CS Energy and CleanCo alongside private renew- able developers.

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

1.3 Foreign Investment Review Process The Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA), Foreign Acquisitions and Takeovers Regulation 2015 (Cth) (FATR), and the Security of Critical Infra- structure Act 2018 (Cth) (SOCIA) form the key body of foreign investment legislation regulating foreign investment protections applicable to the power and energy industry in Australia. Responsibility for decisions regarding policy and approving notifications sits with the Australian Treas- urer (or their delegate), as advised by the Foreign Investment Division of the Australian Department of the Treasury (Treasury). Investments in, or acquisitions of, power industry assets are often captured under the FATA as relating to “critical infrastructure assets”. The acquisition of a stake of 10% or more (or less, where the business will be gaining whole or part control of the entity) in an entity that is the responsible entity for, or a direct inter- est holder in, a “critical infrastructure asset” requires prior approval from FIRB regardless of value, as does the establishment of an Australian business relating to a “critical infrastructure asset”. The term “critical infrastructure asset” is broadly defined under the SOCIA and, relevantly, includes “critical electricity assets”, which are defined as: • networks, systems, or interconnectors for the transmission or distribution of electricity to ulti- mately service at least 100,000 customers; or • electricity generation stations connected to a wholesale electricity market that: • have an installed capacity of 30MW or more; or • are owned or operated by an entity that is con- tracted to provide a system restart ancillary ser- vice. Australia enforces a strict AUD zero threshold for all direct investments made by Foreign Govern- ment Investors (FGIs), requiring mandatory approval for any stake in local business or land. For private foreign investors, monetary thresholds range from AUD0–AUD1.498 billion, depending on the nature of the acquirer and target.

• SA : Entirely private, including AGL, Neoen and Engie. • TAS : Predominantly state owned through Hydro Tasmania. • WA : Mixed – state-owned Synergy and private operators across the WEM and off-grid systems. • NT : Government-owned Territory Generation (sub- sidiary of Power and Water Corporation). • ACT : No territory-owned generation; electricity sourced via the NEM and long-term renewable offtake agreements with private developers. Transmission • NSW : Transgrid (privately owned). • VIC : AusNet Services (privately owned). • QLD : Powerlink (state owned). • SA : ElectraNet (privately owned). • TAS : TasNetworks (state owned). • WA : Western Power (state owned); Horizon Power in regional areas. • NT : Power and Water Corporation (state owned). • ACT : Serviced by Transgrid (privately owned). Distribution • NSW : Ausgrid, Endeavour Energy (privately owned) and Essential Energy (state owned). • VIC : Five privately-owned distributors – CitiPower, Powercor, United Energy, Jemena and AusNet. • QLD : Energy Queensland (state owned) via Ergon and Energex. • SA : SA Power Networks (privately owned). • TAS : TasNetworks (state owned). • WA : Western Power and Horizon Power (state owned). • NT : Power and Water Corporation (state owned). • ACT : Evoenergy (50% state owned, 50% privately owned). Retail/Supply to End-Users • NEM regions : Competitive market dominated by AGL, Origin Energy and EnergyAustralia, with smaller retailers including Alinta and Red Energy. Tasmania retains Aurora Energy (state owned) alongside limited competition. • WA : Synergy (state owned) dominates; limited con- testability for large customers. • NT : Jacana Energy (government owned) is the sole retailer.

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

Merger Control The Competition and Consumer Act 2010 (Cth) estab- lishes a mandatory merger approval regime imple- mented by the Australian Competition and Consum- er Commission (ACCC). Under the new mandatory notification regime, which took effect on 1 January 2026, businesses must notify proposed acquisitions that meet certain thresholds to the ACCC and obtain approval before the acquisition can proceed. Proposed acquisitions and thresholds must be noti- fied as follows: • when a combined business has Australian revenue exceeding AUD200 million and either the target has Australian revenue exceeding AUD50 million or the global transaction value exceeds AUD250 million; • when large business with Australian revenue exceeding AUD500 million acquires a business with Australian revenue exceeding AUD10 million; and • in the event of serial acquisitions – eg, one busi- ness buys a another within a similar goods or ser- vices segment with cumulative Australian revenue of at least AUD50 million over a three-year period (or AUD10 million if the acquirer’s revenue exceeds AUD500 million). Note that the above is a summary, and does not include reference to connected entities of the parties, which are also relevant to threshold calculations. Foreign Investment and ACCC Approval Timelines Where the acquirer is a foreign person, FIRB approv- al under the FATA is required in accordance with the thresholds and processes described in 1.3 Foreign Investment Review Process . The standard FIRB review period is 30 days, extendible at the Treasury’s request or unilaterally for 90 days at a time by way of an interim order. ACCC merger approval varies in duration depending on the complexity of the transaction. A simple trans- action tends to be approved within 15–30 business days under a standard Phase 1 review However, more elaborate transactions requiring a Phase 2 review can take a further 90 days to be authorised.

Conditions can be imposed to address any “national interest concerns” identified by Treasury during the review process. Typical conditions relate to local board composition, operational asset control, data storage and access arrangements, tax compliance,

and ongoing compliance reporting. Protections for Foreign Investors

Foreign investors in Australia’s power industry benefit from a range of protections under bilateral investment treaties (BITs) and free trade agreements, including ChAFTA, KAFTA, JAEPA, AANZFTA and the Austral- ia–EU Free Trade Agreement. These instruments pro- vide access to domestic courts and, in certain cases, recourse to international arbitration through Investor- State Dispute Settlement (ISDS) mechanisms, offering protection against expropriation, discriminatory treat- ment and denial of fair and equitable treatment. Incentives for Foreign Investment in Renewable Energy The 2026–27 Federal Budget confirmed the Gov- ernment’s intention to attract foreign capital into Australia’s renewable energy sector through a pro- posed time-limited capital gains tax (CGT) conces- sion. Under the proposed Treasury Laws Amendment (Foreign Resident CGT Concessions for Renewable Energy) Bill 2026 (Cth), from the commencement of the legislation through to 30 June 2030, a 50% CGT discount would be available to foreign investors on the disposal of eligible renewable energy assetsor qualify- ing indirect interests. The discount is intended to apply to assets whose pri- mary purpose is generating, or directly facilitating the generation of, electricity from an eligible renewable energy source as defined in the Renewable Energy (Electricity) Act 2000 (Cth). It is proposed that the con- cession extend to development-stage projects where supported by evidence that their intended purpose satisfies eligibility criteria. 1.4 Sale of Power Industry Assets The sale of power industry assets and businesses in Australia is subject to several overlapping regulatory frameworks, depending on the nature of the trans- action, the identity of the acquirer and the assets involved.

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

State Restrictions on Disposal of Government Assets Some jurisdictions impose legislative restrictions on the disposal of state-owned electricity assets. For example, Queensland’s Government Owned Corpo- rations Act 1993 (Qld) framework restricts the sale or long-term lease of GOC assets without specific legis- The AER or relevant state regulator may need to approve the transfer of generation, transmission or distribution licences as part of a transaction. The regu- lator will assess whether the incoming entity has the necessary technical and financial capacity to comply with the relevant state electricity legislation and the NER. In Western Australia, licence transfers require approval from the Economic Regulation Authority. 1.5 Central Planning Authorities lative or executive approval. Regulatory Licence Transfers The AEMO is the principal authority overseeing elec- tricity supply adequacy and coordinating long-term infrastructure development across the NEM and WEM. Its functions include real-time power system operation, maintaining system security and reliability, and administering the wholesale spot market. The AEMO’s primary planning instrument is the Inte- grated System Plan (ISP), published biennially, which charts the optimal development pathway for gen- eration, storage and transmission investment over a 20-year horizon. The ISP designates priority transmis- sion projects as “actionable”, streamlining their regu- latory progression. The 2026 ISP, released on 25 June 2026, reaffirms that renewable energy firmed with storage and backed up by gas remains the least-cost means of supplying reli- able electricity to 2050 as coal-fired generation retires and demand nearly doubles due to electrification and emerging loads such as data centres. Under its Step Change scenario, the plan identifies approximately AUD106 billion in annualised capital investment to 2050, with around AUD6 billion allocated to transmis- sion, expected to deliver AUD30 billion in consumer savings.

Two additional national bodies support the AEMO’s planning function. The Australian Energy Market Com- mission (AEMC) develops the market rules govern- ing investment signals, connection frameworks and reliability standards. The Australian Energy Regulator (AER) economically regulates network businesses, approving revenue determinations that shape network investment, and enforces compliance with the market rules. At state level, jurisdictions maintain supplementary planning roles – notably, the NSW Electricity Infra- structure Roadmap, Queensland’s Energy and Jobs Plan, and Victoria’s Renewable Energy Zone frame- work, which coordinate with the ISP on siting new generation and network infrastructure. In WA, Energy Policy WA and the Coordinator of Ener- gy perform equivalent planning functions for the WEM. In the NT, the Northern Territory Electricity System and Market Operator (NTESMO), Utilities Commission of the NT and AER oversee the energy market. 1.6 Recent Changes in Law or Regulation There has been significant reform and innovation in the legal and regulatory framework governing Aus- tralia’s power industry over the past year. The most significant and noteworthy changes include the fol- lowing. Government Support Instruments The Commonwealth Government’s Capacity Invest- ment Scheme (CIS) has continued to expand, with multiple tender rounds progressing through 2025 and 2026 aimed at delivering an additional 40 GW of renewable generation and clean dispatchable capac- ity. Under the CIS, successful proponents are award- ed Capacity Investment Scheme Agreements (CISAs), which provide long-term revenue floor and cap con- tracts over ten to 15 years, de-risking investment in new generation and storage. The tender process was streamlined in 2025 from a two-stage to a single-stage assessment, reducing tender duration from nine to six months. At state level, New South Wales has contin- ued to award Long-Term Energy Service Agreements (LTESAs) under the Electricity Infrastructure Invest- ment Act 2020 (NSW), with recent rounds targeting

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

Data Centre Energy Framework In March 2026, the Federal Government released a national interest framework for data centres and AI infrastructure, establishing expectations that devel- opers must meet to receive priority treatment under federal regulatory assessments. The framework’s cen- tral energy requirement is a “bring your own” (BYO) energy principle: data centre developers are expected to underwrite or develop additional renewable energy generation to match their consumption, internally finance required grid connections and network aug- mentation, and participate in demand flexibility pro- grammes that support grid stability during periods of constraint. Developers that meet these expectations, rather than drawing on existing grid supply and poten- tially increasing electricity costs for other consumers, will be prioritised in approval processes. The BYO energy principle is underpinned by grow- ing industry and community pressure, with a broad coalition of climate groups, unions and clean energy bodies establishing public interest principles requir- ing data centres to be powered by 100% additional renewable energy from the day facilities commence operation. In practice, this is being achieved through long-term PPAs with new renewable generation pro- jects and, in some cases, co-located on-site genera- tion and battery storage. At state level, South Australia has introduced Tech- nical Regulator Guidelines (February 2026) requiring data centres of 100 MW or more to obtain certification covering power system reliability, security and sta- bility, including mandatory backup energy systems and compliance with directions during system stress events. Separately, the AEMC published a draft determination in March 2026 proposing new NER access standards for large inverter-based loads. The rule change, initi- ated by the AEMO, addresses concerns that existing technical customer access standards are inadequate to manage the system security implications of concen- trated, high-demand data centre loads. The proposed standards would require data centres to demonstrate fault-ride-through capability and other technical per- formance standards as a condition of connection.

long-duration storage and firming capacity for the Sydney-Newcastle-Wollongong sub-region. Electricity Services Entry Mechanism The NEM Wholesale Market Settings Review (the Nel- son Review), completed in 2026, recommended the introduction of the Electricity Services Entry Mecha- nism (ESEM) as a permanent successor to the CIS (which is expected to conclude in 2027). The ESEM is designed to address the “tenor gap” problem; a fundamental mismatch between the 15+ year revenue certainty required to finance capital- intensive renewable and storage projects and the one- to seven-year contracting appetite of retailers and commercial customers. Under the proposed model, the ESEM Administrator would conduct competi- tive reverse auctions to procure standardised, trade- able financial derivative contracts from new projects across three service categories: bulk zero-emissions energy, shaping services (time-shifting supply to match demand profiles) and firming services (capable of continuous dispatch for extended periods). Con- tracts would be “warehoused” until sold on to retail- ers and large users, recycling capital and maintaining market-based price signals. All NEM states except Queensland have provided in-principle agreement to the core recommendations, with co-design processes underway throughout 2026. In Western Australia, the reformed Wholesale Electric- ity Market now operates a real-time Essential System Services Market (ESSM), co-optimised with energy dispatch, which procures frequency regulation, con- tingency reserves and other system services previ- ously obtained through administered contracts. Tax Incentives for Renewable Energy Investment As described in 1.3 Foreign Investment Review Process , the 2026–27 Federal Budget introduced a proposed 50% capital gains tax discount for for- eign investors disposing of eligible renewable energy assets under the Treasury Laws Amendment (Foreign Resident CGT Concessions for Renewable Energy) Bill 2026 (Cth), applicable from commencement through to 30 June 2030. This represents a significant shift in Australia’s approach to attracting foreign capital into the energy transition.

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

1.7 Announcements Regarding New Policies As discussed in 1.5 Central Planning Authorities , the AEMO has recently released its 2026 ISP which sets a roadmap to 2050 reaffirming a commitment to a low-cost transmission through the use of storage systems. As also mentioned in 1.3 Foreign Invest- ment Review Process , the recent Federal Budget has highlighted a strengthened commitment to clean energy projects and the integration of small-scaled distributed resources. 1.8 Unique Aspects of the Power Industry Australia’s power industry is distinguished by several characteristics that set it apart globally. Consumer Energy Resources and Storage Australia has one of the highest rates of rooftop solar adoption in the world, with installations continuing at pace; 437 MW of rooftop solar capacity was installed in April 2026 alone. In 2025 alone, home battery instal- lations were rolled out at a scale of power capacity equivalent to the Snowy Hydro-Electric scheme. Com- plementing this, Australia ranked as the third-largest grid-scale battery market globally in 2025, reflecting a rapid build-out of storage to firm intermittent renew- able generation. Data Centres and AI Infrastructure Australia is experiencing a significant data centre and AI infrastructure expansion, with over 160 opera- tional facilities and a reported pipeline exceeding AUD155 billion in new projects, driven primarily by cloud computing and AI demand. Under the Austral- ian AI Data Centre Guidelines, new developers are required to “bring your own” power by funding addi- tional renewable generation, entering into long-term power purchase agreements and supporting grid sta- bility, ensuring that the energy costs of these facilities are not passed through to ordinary consumers. This framework presents a substantial opportunity for fur- ther renewable energy investment. Favourable Renewable Energy Conditions Australia benefits from exceptional natural condi- tions for renewable energy generation. Solar irradi- ance levels rank among the highest globally, par- ticularly across inland and northern regions, making utility-scale and rooftop solar highly productive. The

southern and western coastlines, along with elevated inland areas, offer consistently strong wind resources that support a growing fleet of onshore and offshore wind projects. These natural advantages underpin the economic competitiveness of the renewable transition and position Australia favourably to meet its emissions reduction targets. Gas as Dispatchable Firming Gas-powered generation continues to perform a critical firming function within Australia’s electric- ity system, providing dispatchable capacity during periods of low renewable output, high demand and system stress events. While gas contributes a rela- tively modest share of total generation, its flexibility and rapid-start capability make it essential for main- taining reliability as the system transitions away from coal-fired baseload. A prime example of this can be seen in South Australia where generation tends to be 100% wind, although, when there are wind droughts, the state relies heavily on gas-fired power. Since the decommissioning of SA’s last coal-fire power station in 2016, structured future planning around a reliance on gas infrastructure during weather lulls. The NEM operates as an energy-only gross pool mar- ket. All scheduled generators submit price-quantity bids to the AEMO, which centrally dispatches gen- eration on a merit-order basis in five-minute intervals. The spot price is determined at the regional reference node for each of the five NEM regions (Queensland, New South Wales, Victoria, South Australia and Tas- mania), meaning that the market uses regional rather than nodal pricing. A market price cap of AUD23,200/ MWh applies, alongside a cumulative price threshold that triggers an administered price of AUD2,225,900/ MWh if sustained high prices are reached over a sev- en-day rolling period, protecting market participants from prolonged extreme pricing events. The spot mar- ket is supported by the Frequency Control Ancillary Services (FCAS) which uses storage and fast-acting generation to maintain the grid’s frequency. 2. Market Structure, Supply and Pricing 2.1 The Wholesale Electricity Market

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AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz

While the NEM does not presently operate a separate capacity market, at present, generators are paid for energy they produce and deliver to the wholesale mar- ket as opposed to being paid to have capacity avail- able. Reforms are underway to introduce a capacity mechanism designed to provide investment signals for dispatchable and firming generation as the system transitions from coal. Financial risk management occurs via bilateral con- tracting between generators and retailers outside the spot market. Common instruments include power pur- chase agreements, swap contracts, cap contracts and futures traded on the ASX Energy exchange. These hedge contracts underpin revenue certainty for inves- tors and price stability for retailers. Western Australia’s WEM operates under a funda- mentally different design. It comprises a real-time balancing market for energy dispatch, coupled with a Reserve Capacity Mechanism that procures suffi- cient firm capacity two years ahead of each capacity year to meet forecast peak demand. This dual struc- ture ensures both short-term operational balance and longer-term supply adequacy within the isolated South West Interconnected System. Data centres represent one of the fastest-growing sources of electricity demand in both the NEM and WEM, with consumption forecast to grow approxi- mately 25% annually over coming years. Some oper- ators are pursuing direct grid connections at trans- mission voltage, while others seek behind-the-metre solutions or long-term PPAs to secure firm renewable supply. The AEMO and governments are actively con- sidering how to plan for these step-change demand increases, including through updated forecasting methodologies and new technical connection stand- ards. 2.2 Electricity Imports and Exports Being an island continent, Australia has no interna- tional electricity interconnections. Western Australia’s SWIS and the Northern Territory grid operate in isola- tion, with no interconnection to the NEM or to each other. Electricity transfers occur exclusively between the five NEM regions via a network of regulated and merchant transmission interconnectors. These inter-

regional flows are not subject to separate import or export approvals; rather, they occur automatically through the central dispatch process, driven by price differentials between regions. The principal existing interconnectors are: • QLD – NSW : Queensland–New South Wales Interconnector (QNI), QNI Minor and Terranora (Directlink); • NSW – VIC : Victoria–New South Wales Interconnec- tor (VNI) and VNI Minor; • VIC – SA : Heywood Interconnector and Murraylink; and • VIC – TAS : Basslink (a merchant undersea cable). Electricity flows from lower-priced regions toward higher-priced regions as determined by the AEMO’s dispatch engine, subject to the thermal and stability limits of each interconnector. Where price separation occurs between regions, inter-regional settlement residues accrue and are distributed to market partici- pants via auction processes. Several major interconnector projects are progressing to increase transfer capacity across the NEM. These include Project EnergyConnect (connecting NSW and SA, which is as of June 2026 being fully energised), HumeLink (reinforcing transmission in southern NSW with a scheduled completion date of late 2027), VNI West (an additional VIC–NSW link which is in forced land access and environmental assessment phase) and Marinus Link (a second undersea cable between Victoria and Tasmania which is under construction). New interconnectors must satisfy the Regulatory Investment Test for Transmission (RIT-T) administered by the AER, be identified as actionable in the AEMO’s ISP, and obtain state planning and environmental approvals. 2.3 Supply Mix of Electricity Australia’s electricity supply mix is undergoing a rap- id transformation. A decade ago, coal-fired genera- tion accounted for approximately 75% of NEM out- put. As at 2025, coal’s share (both black and brown) has declined materially in total NEM generation, but remains by far the largest generator in the generation mix.

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