Force Majeure in the Hydropower Industry: Concepts and Case Studies

ISBN-13: 9783031274015 / Angielski / Miękka / 2023 / 110 str.

Daniel Constantin Diaconu

Opis

This book aims to highlight the particular situation faced by certain hydropower companies by the fact that they cannot fulfil their contracts due to force majeure.  The first part of this book will be an analysis of how water is used in electricity production. It is  important to point out that all types of energy sources use water, to a different extent,  of course, and that its spatial and temporal availability is very important. The focus  will be on hydropower, presenting the current situation at the global level, and the effect of reducing the amounts of water in the river system.

The second part is based on the presentation of the concept of force majeure and the  ways of presenting and drafting it in a contract. Many disputes or the success of a  contract depended heavily on the provisions of this article of the contract. Obviously,  there are also situations in which the signatory parties abuse or are not protected  by these provisions of force majeure. Starting from a few brief examples from the  international level, we reach a wide discussion of the situation created in Romania,  when the largest supplier of electricity produced on the basis of water terminates  several contracts invoking force majeure. The manner in which the opinion of the  parties involved is presented to the court is analyzed and presented in detail.

Spis treści

Chapter 1 Introduction

            References

Chapter 2 Water for energy versus energy for water

2.1 Water for energy

2.1.1 Electricity generated by nuclear units

2.1.2 Water consumption in coal-fired power

2.1.3 Water impacts of modern bioenergy

2.1.4 Photovoltaic installations (solar plants)

2.2 Energy for water

2.2.1 Pumped-Storage Power Plants

2.2.2 Energy for water purification

2.2.3 Energy consumed for water used by the end user

            2.3 The economic relationship between water and energy

            References

Chapter 3. Energy sectors that use water

            3.1 Water sampling for energy production

            3.2 Related policy documents

            References

Chapter 4. The context of the development of the World hydropower sector

            4.1 Values of the hydropower capacities installed in the World

4.2 Hydropower, renewable energy?

References

Chapter 5. The impact of drought on the hydropower domain

            5.1 Minimum run-off phases

5.2 Minimum run-off indices

            5.2.1 Basic indices of the minimum run-off

5.3 Hydrological drought indices

            5.3.1 Standardized flow rate Index (SFI)

            5.3.2 Standardized groundwater level index (SGI)

            5.3.3 Standardized run-off Index (SRI)

            5.3.4 Minimum run-off indices for drought fault finding

5.4 Statistical methods and approaches for assessing the minimum run-off

References

Chapter 6. Force majeure

6.1 Understanding the concept of force majeure

            6.1.1 What is a force majeure clause?

6.1.2 Anticipate and specify force majeure events

6.1.3 Avoid restrictive terminology

6.1.4 Consider the drop in performance due to force majeure

6.1.5 Is COVID-19, for example, a force majeure event?

6.1.6 Certificates of force majeure

6.1.7 Other options: Impossibility/impracticability and purpose frustration

6.2 Force Majeure Vs. Pacta sunt Servanda

6.3 Force majeure under Electricity Laws

6.4 The drafting of an effective force majeure clause

6.5 Force majeure in practice

6.6 Invoking force majeure in a crisis situation

References

Chapter 7. Sample contractual provisions, which must be contained in a force majeure contract

            7.1 Introduction

7.2 Article 13: Force Majeure

References

Chapter 8. Concrete cases of invocation of force majeure

8.1 Private power producer disputes B.C. Hydro's cancellation of $ 20 million in purchases

8.2 Destruction of a dam in Laos

8.3 Oroville Dam

8.4 Vajont Dam

References

Chapter 9. Romania, in a European energy context

9.1 Energy market history

9.2 Hidroelectrica Corporation company, Romania

9.3 The “force majeure” mentioned in contracts concluded by Hidroelectrica Corporation

References

Chapter 10. Settlement of the dispute, in case the force majeure clause is invoked by Hidroelectrica SA

                10.1 Objectives proposed by the objectors

                10.2 Questions put forward by Hidroelectrica Corporation

                10.3 Post factum

References

Chapter 11. Electricity, systemic crises and environmental policies

11.1 Today's energy challenges

11.2 The effects of crises on electricity generation

11.2.1 Social and political crises

11.2.2 Health crisis

11.3 Discussions

11.4 Conclusions

References

O autorze

Daniel Constantin Diaconu is an Assistant Professor of the Faculty of Geography, University of Bucharest.  He holds a Master degree in water resources and obtained a PhD in Geography.