When discussing legal practice in the electricity sector, many question why the energy sector is considered strategic for lawyers. The answer to this question may seem simple, but it involves a multidisciplinary chain of market areas.

In general, with the growth of the energy sector, there are many positive results for our economy.

In other words, new businesses and opportunities are constantly emerging, such as the creation of 200 jobs due to solar energy, or even the increase in mergers and acquisitions in the energy sector , among other issues.

However, to build your career in the electricity sector, you need to specialize and understand why the energy sector is considered strategic for legal professionals. Learn more about how the sector impacts the economy and your field of work!

Environment, water crisis and the energy sector.

There is a very interesting dialogue between the environment and the energy sector. This is because, when you start studying the energy sector, you learn that there are different types of energy, which can be renewable or non-renewable.

The impact of each type of energy use on the environment is of paramount importance for those researching the future of energy in the country, given the frequent talk about the possibility of scarcity.

The risk of resource scarcity proved very serious in 2021, when periods of drought occurred , impacting the hydropower sector.

In the case of 2021, the impact was not only on hydroelectric power plants, as there were also effects on agricultural production and water supply in cities.

In an article published on G1, Roberto Wagner, an energy specialist at the National Confederation of Industry (CNI), was interviewed. In the interview, he states that the industrial sector was already going through a very difficult period, which was exacerbated by the pandemic.

But with the water crisis, industrial sectors have no room to maneuver to avoid passing these costs on. Consequently, with energy becoming more expensive and directly affecting industries, the tendency is for this to end up being incorporated into product costs, reaching the final consumer.

Furthermore, in the graph below we can see why there is concern about the water crisis in our country, and what its effects are on the daily lives of citizens.

As a result, in the first half of 2021, the Ministry of Mines and Energy decided to expand electricity generation from thermoelectric plants, which are more expensive and polluting and run on fossil fuels (non-renewable energy sources).

The impact of these choices on people's daily lives is not immediate, but becomes noticeable over time, also pointing to the need for more research in the energy sector, especially renewable energies.

Furthermore, this data serves to confirm why the energy sector is considered strategic in our country, since the consequences extend to the entire society and economy.

Renewable and non-renewable energies

As mentioned, we can classify energy into two types: renewable and non-renewable energy. For a better understanding, I will present an explanatory chart:

Energy Species
Renewable energy	Non-renewable energy
Renewable energy sources are energy resources that can regenerate in a short period of time and are therefore considered inexhaustible.	Non-renewable energy sources are energy resources that do not regenerate in the short or medium term, therefore they can be depleted.
– Solar energy  – Wind energy  – Biofuels  Geothermal energy  – Hydropower	Oil  – Coal  Nuclear energy  Natural gas  Oil shale

Furthermore, our country is a major reference in the sector, because, according to reports from the Energy Research Company (EPE) , 83% of the energy generated in Brazil comes from renewable sources, while the global average is 27%.

These figures, for example, attract the attention of investors worldwide, who see Brazil as a powerhouse in the energy sector, bringing significant investment to the country.

Investments in the Energy Sector

Because it is considered strategic for the development of our country, the energy sector has also been receiving a lot of investment, both national and international.

It is estimated that the Brazilian electricity sector will receive investments of R$ 365 billion by 2030, as stated by the Director-General of ANEEL (National Electric Energy Agency), André Pepitone, at the “World HVDC Week 2021”.

These values ​​directly and indirectly impact the entire national market, generating jobs, research, and development for the country.

The fact is that the energy sector has been standing out, and law firms and legal consultancies need professionals with top-notch qualifications.

The areas of activity in the Energy Sector

We recently published an article on the IDP blog that can help you better understand the opportunities available for professionals who wish to practice law in the energy sector.

In this article , we discuss arbitration in the energy sector, mergers and acquisitions procedures, and the possibility of legal professionals providing legal advice in the regulatory area.

To give you an idea of ​​the opportunities, in Private Law alone, according to data collected and provided by Transactional Track Record (2021), there are records of market transactions totaling R$190,1 billion, with 717 registered mergers and acquisitions linked to the Energy Sector.

Another sector that has been gaining prominence due to the Energy Sector is arbitration, which, according to reports prepared by professor and lawyer Selma Lemes, saw a movement of R$ 64,52 billion and R$ 55,20 billion, respectively, in 2020 and 2021, originating from arbitration disputes.

It's clear that there are many opportunities in the job market, especially since it's a rapidly expanding niche.

However, it is necessary for legal professionals to seek specialization in the area so that their daily work in the regulatory sector is technical, sophisticated, and efficient.

The role of the lawyer in the Energy Sector

Having a general overview of the Energy Sector, it is important that you, as a legal professional, have a deep understanding of this market niche and its importance for the country's development.

In-depth knowledge of the energy sector allows professionals to stand out in the legal market, enabling them to work as consultants for companies in the electricity sector, in the area of ​​compliance, and even in the legal departments of these companies.

Right now, the best investment, without a doubt, is in a postgraduate degree in Energy Sector Regulation, such as the MBA in Law and Regulation of the Electricity Sector from IDP Online.

With IDP Online's specialization, you'll have the opportunity to study with the best professors in Brazil in the Energy Sector, online and live, which is very advantageous! It's also an excellent opportunity for networking.

Also, if you enjoyed this article, be sure to subscribe to our newsletter!

By subscribing to our newsletter, you'll have first-hand access to IDP articles, including the latest news from the legal world, free IDP materials, and recommendations from market experts!