Bracewell Hot Takes for the 2025 EMEA Project Finance Sector | Page 7

Interconnectors and Transmission

Recent Notable Matters
Europe and Africa , like other regions of the world , must innovate to successfully transition to cleaner energy , which will require massive investments in electrical interconnections as well as the modernisation and development to different extents of their electrical grids .
France has 57 cross-border electricity connections and is located at a key point in Europe . RTE is building more connections to strengthen the European electricity grid and increase its capacity to share power with neighbouring countries . By 2035 , RTE plans to double this capacity . To support the energy transition , France needs to quickly improve its electricity transmission and distribution networks . Over the next 15 years , an investment of € 100 billion is needed . RTE also helps develop infrastructure to connect offshore wind farms , and we are pleased to support them on several projects .
In 2024 , we opened our Paris office ( with Partners Anne Lapierre , Arnaud Bélisaire and Simon Cudennec ) focused on energy and infrastructure . Arnaud and team had the privilege of continuing their support for INELFE ( the joint venture between the French and Spanish TSOs ) in the framework of contracts related to the construction of the major electrical interconnection in the Gulf of Biscay .
In Africa , overcoming challenges related to financing and technical capacities will be essential to fully harness the potential of distribution networks , promote energy access , and ensure long-term energy sustainability .
We are pleased to support clients in North Africa in the development of renewable projects and in connecting to the European grid via transmission lines .
• Confidential consortium — advising in connection with the development of an integrated hybrid renewable energy project located in Northern Africa and a dedicated HVDC line connection from the power plant to a connection point on an island in the Mediterranean Sea to provide some power to the island market and most of it to Southern Europe
• Joint company — advising the joint company set up by the French and Spanish electricity transmission system operators Réseau de Transport d ’ Électricité and Red Eléctrica de España on a € 2.5 billion project to connect electricity transmission cables between Gatica in Spain and Cubnezais in France . Our services include the drafting and negotiation of construction and maintenance contract for the cables and the converter stations .
• French transmission operator — advising on the “ FAB ” project ( France – Alderney – Britain ) consisting of the construction of an electrical interconnector underwater and underground between France and Great Britain via the island of Alderney . This project will travel nearly 220 km and will allow a maximum transmission of 1,400 MW and thus contribute to the increase of energy trade between the two countries and to the development of marine renewable energy in the Channel Islands area .
• Weza Power ( Anzana ) — on the first private-sector electricity distribution network ( operating at a national level ) in Burundi ( and in sub-Saharan Africa for a decade ). Work includes drafting and negotiating the agreements with the State of Burundi and with the State-owned power distribution company for the development , construction and maintenance ( through a public-private partnership ( PPP )) of a large electric network with the capacity to connect nine million people to the national grid .
The Year Ahead
In 2025 , projects like Xlinks are set to grow rapidly , driving significant financing needs . We are committed to these initiatives and eager to discuss tailored financing solutions . Our experience includes advising sponsors , lenders , and governments on the entire transmission cycle , managing government support , land issues , resettlement , ESG matters , and negotiating power supply and offtake contracts , along with various financing structures in the sector .
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