Effects of COVID-19 on Energy Projects and Programs

Ballard Spahr LLP

Globally, the coronavirus (COVID-19) has caused not only a major public health crisis but also major economic uncertainty, as business are directed to close, supply chains are brought to a standstill, and "stay in place" orders are announced. In the context of energy project construction, development, or financing, COVID-19-related interruptions to a project’s construction or operations can have significant implications for project borrowers, sponsors, project counterparties and lenders. State agencies are also grappling with whether program extensions are necessary to enable project owners to take advantage of various state energy incentives. While some state legislatures are recessed, others have passed critically important laws applicable to the energy industry.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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