Navigating Complex Contracts in the Renewable Energy Sector

Our client had successfully secured a competitive tender to supply energy solutions to the customers of a global retail business. The Herrington Carmichael commercial team were instructed to advise on the other party’s standard master services agreement and trademark licence agreement which heavily favoured the other party which and which created significant legal and commercial challenges for our client.

The Client

A leading UK renewable energy supplier and installer for residential and commercial property, which is part of a global renewable energy group with operations in multiple jurisdictions.

The Challenge

There were numerous challenges in undertaking this project. For example, our client had indicated during the tender process that it would accept the other party’s standard terms which limited our client’s ability to negotiate material changes without jeopardising the relations.

Further challenges were that the contracts lacked supplier friendly provisions for example volume commitments/exclusivity and also contained high limits on liability.

Our advice was delivered in tight timescales with the retainer completed within 48 hours of instruction.

Our Approach

The Herrington Carmichael Commercial Team was instructed to provide comprehensive legal support, including:

• Conducting a comprehensive risk analysis of both agreements and prepare a detailed issues report
• Facilitate a roundtable strategy session with our clients stakeholders to agree on negotiation priorities.
• Recommending alternative positions to address the risks identified in the risk analysis.

The Outcome

Following the advice and detailed review of the agreements, our client gained a clear understanding of its legal position and the associated risks of entering the agreements and were able to prioritise and narrow the core issues for discussion and negotiation with the other party and if positions were agreed, drafting positions were already prepared to which would streamline the negotiation process and reduce legal costs by minimising time spent on drafting and revisions.

What our team said

Mark Chapman, Commercial Partner, commented:

“Working with a major renewable energy supplier meant we were dealing with some complex agreements, but it was great to help the client cut through the noise and focus on what really mattered. In the end, they came out stronger and better prepared for negotiations, which is exactly the kind of outcome we aim for.”