Energy and Infrastructure
Key developments
RESS 6
The Department of Climate, Energy and the Environment is consulting until 13 March 2026 on RESS 6. Our briefing is available here: Energy Update: Next steps for the Renewable Electricity Support Scheme.
CLIMATE ACTION AND LOW CARBON DEVELOPMENT ACT
The Supreme Court provided guidance on section 15(1) of the Climate Action and Low Carbon Development Act 2015 which requires a relevant body to “in so far as practicable, perform its functions in a manner consistent with” the climate action plan, national long term climate action strategy, national adaptation framework and sectoral adaptation plans, the furtherance of the national climate objective, and the objective of mitigating emissions and adapting to the effects of climate change in the State. Relevant bodies include prescribed bodies and public bodies.
In Coolglass Windfarm Ltd v An Coimisiún Pleanála [2026] IESC 5 the Supreme Court upheld the order of the High Court quashing the refusal to grant permission for development. It set out guidance on section 15(1) at paragraphs 92-114.
The Supreme Court guidance confirms that a:
“... public body can only perform such functions as it is required or permitted to perform by statute. Section 15 does not, therefore, expand the existing functions of a relevant body or create new functions. It is the existing functions of a relevant body that must be performed in a manner consistent with the section 15 objectives… The obligation to perform a function consistently with the climate objectives is itself qualified by the phrase “in so far as practicable”… the section necessarily contemplates that there may be circumstances in which the relevant body may not be required to perform its functions in a manner consistent with the s. 15(1) objectives where it is not practicable to do so… Section 15 is not a stand-alone provision… it does operate within the existing statutory scheme in respect of each relevant body. Accordingly, its impact in any given case, will depend upon the nature and extent of that statutory scheme… This operates as a form of climate sense check, and to ensure that decisions and actions of public sector bodies are all aligned with the climate objectives”.
EU developments
NORTH SEA
Several countries, including Ireland, signed the Hamburg Declaration, an Investment Pact for the North Seas. It commits to delivery of 100GW of the joint 300GW ambition through cross-border cooperation projects, comprising hybrid offshore wind projects including infrastructure with grid connections to more than one country, as well as cross-border radially connected wind farms. Further information is available here: Commission welcomes renewed commitment to power clean, independent and secure offshore energy in the North Seas region.
CONNECTING EUROPE
Nearly €650 million in grants is being allocated from the Connecting Europe Facility to help finance 14 cross-border energy infrastructure projects.
NETWORK PLANNING
ACER recommended improvements for the interlinked modelling report for EU electricity, gas and hydrogen infrastructure planning, including more ambitious actions and firmer timelines.
TRADE WITH THE EU
Minutes of the seventh meeting of the Specialised Committee on Energy under the Trade and Cooperation Agreement held on 7 November 2025 have been published. Since that date, however, it was announced that exploratory talks for the UK’s possible participation in the EU’s internal electricity market concluded and that negotiations to set out the necessary framework are to take place in 2026.
POWER PURCHASE AGREEMENTS
The Commission plans to assess barriers to power purchase agreements and make recommendations to Member States. The assessment will focus on issues such as access for small buyers, standardisation of contracts, and cross-border contracts. The Commission has opened a call for evidence until 20 February 2026.
BATTERIES
The European Commission published a Communication to Member States on a Battery Booster Strategy to kickstart the manufacture of batteries in Europe. The Commission will set up a Battery Booster Facility and aims to launch a call for proposals in Q1 2026. In February 2026, it plans to propose an Industrial Accelerator Act to support lead markets for European-made batteries and their components and to secure value-added foreign investment in the EU.
ELECTRICITY
- Clearing prices: ACER-approved amendments to the harmonised maximum and minimum clearing price methodologies for EU day-ahead and intraday market coupling. In case of partial decoupling within a bidding zone, the bidding zone will remain in market coupling, potentially with low liquidity, and the harmonised automatic price adjustment mechanism will not be triggered.
- Cybersecurity: ACER published guidance on the information to be voluntarily submitted for monitoring of operational reliability performance indicators related to cybersecurity in the electricity sector under the Cybersecurity Network Code. ACER intends to use this data (after aggregation) as an input to its triannual reporting.
- Technical reports: ENTSO-E published reports on instability detection technologies in power electronics dominated systems; TSO-DSO digital twin use cases and solutions; and data requirements for building HVDC reliability.
GAS
- Hydrogen Mechanism: The European Commission is inviting off-takers until 20 March 2026 to express interest in supply offers.
- Hydrogen Bank: Projects selected in the 2024 Innovation Fund Auction for renewable hydrogen production signed grant agreements, receiving €270.6 million from EU ETS revenues.
- Russia: Regulation (EU) 2026/261 on phasing out Russian natural gas imports and preparing the phase-out of Russian oil imports is in force. Prohibitions on the import of pipeline gas and of LNG (unless a temporary exemption arises) apply on a phased basis beginning from 17 June 2026 and 25 April 2026, respectively. Further information is available here: Russian gas imports: Council gives final green light to a stepwise ban. The EU also began to apply a new mechanism for price adaptation of the price cap for Russian crude oil.
- Security of supply: Regulation (EU) 2017/1938 concerning measures to safeguard the security of gas supply is to be amended by a Commission Delegated Regulation to reduce the number of the regional risk groups and set up an updated structure taking into account the changed gas import infrastructure, the impact of new LNG terminals and infrastructure.
CARBON
- Carbon removals: The European Commission adopted a first set of methodologies under the Carbon Removals and Carbon Farming Regulation to certify activities that permanently remove CO2 from the atmosphere. The European Parliament and Council have a two-month period to scrutinise the delegated Regulation (which may be extended). The Commission is also developing further methodologies including in relation to carbon farming, in respect of which it is consulting until 19 February 2026.
REMIT
- Investigations: ACER published rules on the conduct of cross-border investigations into suspected energy market abuse. An upcoming public consultation on REMIT transaction reporting will gather input from market participants to help shape practical guidance under the revised REMIT framework.
- Commission Delegated Regulation (EU) … /… supplements the REMIT Regulation as regards the necessary details for the authorisation and supervision of inside information platforms and registered reporting mechanisms by ACER.
CLIMATE LAW
The European Parliament formally adopted at first reading the proposed Regulation to amend Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality. Amendments would set a 2040 target of reducing emissions by 90% compared with 1990. Amendments would also introduce flexibilities by allowing the use of international carbon credits from 2036, the use of domestic carbon removals in the EU ETS, and increased flexibility across policy sectors.
The Commission is conducting two calls for evidence and public consultations seeking input for the EU’s climate policy framework post-2030. They are open until 4 May 2026 and relate to the role of national climate targets and flexibilities (currently covered under the Effort Sharing and LULUCF Regulations) and use of international credits. Further information is available here: Have your say on the EU’s post-2030 climate policy framework - Climate Action.
FINES FOR FAILURE TO TRANSPOSE RED II
In Commission v Bulgaria (C-206/23), the Court of Justice of the EU found that Bulgaria failed to transpose the Renewable Energy Directive by the period laid down in a reasoned opinion of 2 December 2021. It ordered Bulgaria to pay the European Commission a lump sum of €1.5 million with a further daily rate of €9000 until transposition occurs. Bulgaria argued that the circumstances of force majeure made it impossible for it to satisfy, within the prescribed periods, the transposition requirements.
The Court noted that it had repeatedly held that the concept of force majeure requires that the non-conformity in question is due to circumstances unrelated to the person relying on it and which are abnormal and unforeseeable, the consequences of which could not have been avoided. Force majeure can be invoked only for the period necessary to remedy those difficulties.
INDIRECT LAND-USE CHANGE
The European Commission is seeking feedback until 18 February 2026 on a draft regulation amending Delegated Regulation (EU) 2019/807 to introduce a trajectory to gradually decrease the contribution of high indirect land-use change-risk biofuels, bioliquids and biomass fuels to renewable energy targets.
REGULATORY STRATEGY
The CEER published a Strategy for 2026-2029, which prioritises optimising market-oriented solutions to deliver the best results for consumers and the energy system; empowering and protecting consumers; and deepening the integration of a decarbonised energy system. The focus is on the effective implementation of existing EU energy legislation, given the importance of regulatory stability. It also highlights the growing role of consumers as active participants in energy markets and the need to ensure the protection of vulnerable consumers.
ENERGY CHARTER TREATY
The European Commission has issued formal notices to several Member States, including Ireland, to withdraw from the Energy Charter Treaty. The EU exited the Treaty which it viewed as incompatible with energy transition goals and Ireland has previously indicated that it intends to do the same. Member States have two months to respond to the letters. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
Domestic developments
CLEARING HOUSE
A new Joint Utilities and Transport Clearing House is intended to provide a forum where issues affecting the coordination and timely delivery of infrastructure can be addressed.
Further information is available here: Establishment and First Meeting of the Joint Utilities and Transport Clearing House.
HYDROGEN
The Department for Climate, Energy and the Environment published a study on exporting hydrogen from Ireland focusing on demand and high-level technical and commercial reviews of export transit routes, including repurposed pipelines, new pipelines, and non-pipeline transport.
PUBLIC SERVICE OBLIGATION
The Electricity Regulation Act 1999 (Public Service Obligations) (Amendment) Order 2025 has been made to update the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002.
OIREACHTAS REPORT
The Oireachtas Joint Committee on Climate, Environment and Energy published a report on barriers to achieving climate targets (2026-30) identifying seven barriers in the electricity sector, including as regards grid capacity and storage; uncertainty in planning and consenting due to lack of mandatory decision timeframes and inadequate resourcing; and lack of consistent, transparent cost-benefit and fiscal sustainability assessment of major energy and transport infrastructure.
CRU business
NATIONAL ENERGY DEMAND STRATEGY
The CRU is carrying out a survey until 20 February 2026 on the National Energy Demand Strategy. It seeks views on its design, focus, and performance.
- smart services: microgeneration, smart metering & tariffs, and energy sharing & customer smart functionality,
- demand flexibility and response: flexibility markets, network charging and procurement of flexibility, and
- demand connections: large energy user connection policy.
PUBLIC SERVICE OBLIGATION
A CRU notification for suppliers sets out information requirements and the timeline for 2026/27 PSO submissions under REFIT, RESS and SRESS schemes.
SEMC business
CAPACITY MARKET
The SEMC is consulting until 24 February 2026 on options for longer capacity market auction lead times. Two options are considered:
(i) bringing forward the T4 2031/32 auction to H1 2027, with two-year contracts for successful Existing Capacity to bridge the 2030/31 delivery year; or
(ii) two-year contracts for successful Existing Capacity in the T-4 2030/31 auction (expected March 2027) to bridge the 2031/32 delivery year, allowing for an extended T-4 auction (54 months), or possibly a T-5 auction, to take place to cover the 2032/33 delivery year.
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