September 2026
Members of Acuity Law with Purpose recently attended the Solar Finance & Investment Europe (SFIE) Conference in London. This event is a key forum for investors, developers and stakeholders shaping the future of renewable energy across Europe. Notably, Acuity Law with Purpose was proud to be a headline sponsor for the event and to contribute actively to discussions at a time of rapid market evolution.
A particular highlight was the session moderated by Energy Partner, Jason Howells, “Can Data Centres Be the Solution to Grid Curtailment?”. In particular, the session addressed one of the most pressing challenges facing the renewables sector today: how to supply the increasing demand for energy from renewable generation where there is constrained and ageing grid infrastructure.
Can data centres help solve grid curtailment?
Grid constraints continue to loom large across the UK and Europe. Connection queues, limited grid capacity, curtailment and pricing cannibalisation increasingly restrict how much clean power reaches end users, directly impacting project economics and investor confidence.
At the same time, the rapid expansion of data centres driven by AI, cloud computing and digital infrastructure is creating an increasing demand for reliable power. Britain’s national energy system operator, NESO, has predicted that electricity demand from data centres could treble by 2035. In turn, this would make them one of the largest drivers of growth in commercial electricity consumption.
Against this backdrop, the panel explored whether data centres could utilise renewable energy that would otherwise be wasted through curtailment. More specifically, discussion centred on the conditions under which this model might be viable.
Discussion focused on co-location, flexible interconnection and battery storage. The panel considered whether these tools could better align demand with variable renewable generation. Panellists also reflected on the wide range of data centre formats from large, hyperscale facilities to smaller, more modular or portable solutions. Size, location and use case were identified as critical factors in determining feasibility.
Key themes included:
- Whether data centres need to be close to generation assets or substations
- How consumption can be flexed across sites, times of day, or seasons
- Use of battery storage to capture excess generation and manage intermittency
- Challenges of developing new grid infrastructure versus alternative balancing solutions
- Economic models and pricing mechanisms to allocate risk and value flexible demand
From an investment perspective, the panel examined how regulatory uncertainty, grid access constraints and curtailment risk are influencing capital allocation decisions. Economic models such as private wire arrangements, PPAs, behind-the-meter pricing and emerging forms of dynamic pricing were discussed. The panel also explored how investors underwrite revenues where demand is flexible but not guaranteed, and what risk premiums are being applied today.
One clear takeaway emerged. Technical feasibility alone is not enough. For data centres to play a meaningful role in mitigating curtailment, legal, commercial and regulatory frameworks must evolve to support flexible demand, hybrid assets and new pricing and risk-allocation models at scale.
Financing Europe’s grid: returns, risk, and investment models
Beyond data centres, SFIE provided valuable insight into how investors and developers are approaching Europe’s evolving grid and infrastructure needs.
Sessions examined Regulated Asset Base frameworks, Contracts for Difference and Cap & Floor models. In addition, speakers discussed persistent challenges such as curtailment risk, cannibalisation and long connection queues. While appetite for investment remains strong, concerns were raised around queue management and the potential for stranded interconnectors.
Developers also highlighted ongoing reliance on Chinese supply chains. This requires careful balancing of quality, cost and long-term asset performance. In this context, EPC and O&M contracts play a central role in allocating risk appropriately and maintaining cost efficiency. For projects without CfDs, strategic contract splitting can improve profitability while maintaining bankability.
Hybridisation, repowering and asset life extension
Many renewable assets are approaching subsidy expiry. As a result, hybridisation, repowering and life extension strategies are gaining traction.
Hybrid projects and targeted revamps can enhance flexibility and resilience. Repowering allows high-performing components to be redeployed and underperforming elements replaced. Yield uplifts vary significantly by geography. Southern Europe achieving up to 40-50%, while the UK may achieve around 15% from repowering.
Successfully unlocking this value depends on robust contracts, long-term leases and well-coordinated EPC and O&M contractors. Technical upgrades must translate into bankable, long-term performance improvements.
AI, asset management and dispute resolution
A recurring theme throughout the conference was the growing role of AI in renewable energy portfolios. Its role now extends beyond performance optimisation. AI is increasingly supporting contract management and dispute resolution. It can integrate technical, legal and financial data into a single framework. This supports consistent decision-making and more efficient collaboration across teams.
Solar M&A outlook and market structure in 2026
Looking ahead, the market continues to evolve from passive fund structures towards active, platform-based asset managers. Developers may need to vertically integrate or specialise to remain competitive, while current conditions appear to favour buyers.
Although overall energy demand growth to 2027 may be moderate, the replacement and optimisation of ageing assets ensure continued investment opportunities across the sector.
Where Acuity Law with Purpose adds value: legal insight with purpose
The themes emerging from SFIE cut across law, finance, infrastructure and sustainability – where Acuity Law supports clients best.
Through our Acuity Law with Purpose (ALP) offering, we work alongside developers, investors, asset managers and infrastructure providers to navigate the legal and commercial complexity of the energy transition.
Our experience spans:
- Renewable and energy infrastructure projects
- Data centres and other energy-intensive assets
- Grid, connection and curtailment risk
- Hybridisation, repowering and portfolio optimisation
- ESG-driven investment and sustainable finance
Crucially, we bring together technical understanding, commercial pragmatism and legal rigour, helping clients structure projects that are not only viable today, but resilient tomorrow.
Looking ahead
The conversations at SFIE reinforced a simple truth: the energy transition is no longer just about generation – it is about integration, optimisation and adaptability.
Whether data centres become a meaningful solution to grid curtailment will depend on how quickly regulation, contracting and investment models evolve. What is clear is that collaboration across the legal, technical and financial sectors will be essential.
