Glossary
A funding model where investors earn a regulated return on capital deployed during construction, reducing risk and lowering the cost of finance for large infrastructure projects.
Infrastructure and PPP
from Energy & Technology
Major infrastructure projects — transport, utilities, social housing — often involve partnerships between the public and private sectors. The UK moved away from the Private Finance Initiative (PFI) model following criticism of value for money, but public-private collaboration continues under different frameworks, including the Regulated Asset Base (RAB) model used for Hinkley Point C and proposed for other major projects. Lawyers in this space work on procurement processes, concession agreements, and the regulatory frameworks that govern sectors like water, rail, and telecoms. Understanding how risk is shared between government and private investors is the central challenge.
SPV (Special Purpose Vehicle)
A legally separate entity created to isolate the financial risk of a specific project, so that the sponsor's other assets are not exposed if the project fails.
PPA (Power Purchase Agreement)
A long-term contract between an energy generator and a buyer, fixing the price and volume of electricity to be supplied — essential for project bankability.
Net Zero
The target of balancing greenhouse gas emissions produced with those removed from the atmosphere, legally binding in the UK by 2050.
Bankability
Whether a project's risk profile and contractual framework are acceptable to lenders for the purpose of providing project finance.
UK GDPR
The UK's retained version of the EU General Data Protection Regulation, governing the processing of personal data by organisations operating in the UK.
EPC Contract
An Engineering, Procurement, and Construction contract under which a single contractor takes responsibility for delivering a project to a fixed price, time, and specification.
Carbon Credit
A tradeable certificate representing the right to emit one tonne of carbon dioxide, used in compliance and voluntary carbon markets.