Article: Solidarity as Strategy: Legal Challenges for Energy Sector Boards in the EU [pre-publication] - European Company Law View Article: Solidarity as Strategy: Legal Challenges for Energy Sector Boards in the EU [pre-publication] by - European Company Law Article: Solidarity as Strategy: Legal Challenges for Energy Sector Boards in the EU [pre-publication] 23 1 [pre-publication]

This article examines how the principle of energy solidarity and the EU regulatory framework on capacity sharing affect the legal duties of directors in energy companies. Energy solidarity, as established in Article 194(1) of the Treaty on the Functioning of the European Union (TFEU) and reinforced by case law such as Germany v. Poland (OPAL), has evolved into a legally binding norm that reshapes corporate responsibilities. The analysis focuses on how this principle, together with regulations like (EU) 2017/1938 and (EU) 2019/941, interacts with traditional fiduciary duties of care and loyalty in the corporate governance of critical energy infrastructure. Through a doctrinal method, the article argues that solidarity obligations now impose preventive duties on directors, requiring them to integrate crisis response mechanisms and cross-border coordination into their decision-making. Regulatory compliance is no longer limited to internal matters but extends to geopolitical risk modelling, infrastructure resilience, and intergovernmental cooperation. Directors may incur liability for failing to anticipate solidarity-based obligations, especially under national laws aligned with stakeholder governance models. The article concludes that the convergence of EU energy security law and corporate governance requires a recalibration of board practices. Traditional tools such as risk committees and stress testing remain relevant but must be precisely adapted to solidarity-related obligations. Directors who overlook these developments may not only face regulatory consequences but also increasing scrutiny from shareholders and the public. Energy solidarity is thus not a peripheral concern but a core component of lawful and resilient corporate governance in the EU energy sector.

European Company Law