Energy and Infrastructure

Key developments

EU GRIDS PACKAGE

As the Grids Package progresses through the legislative process, we consider the proposed legislation in our briefing: EU Grids Package: Legislative proposals before Council and Parliament.

DYNAMIC SHARING OF MAXIMUM EXPORT CAPACITY

The CRU issued its decision on dynamic sharing of Maximum Export Capacity behind a single connection point. We look at scope and potential impact in our insights post: Energy Update: Sharing Maximum Export Capacity at electricity grid connection points.

USE OF SYSTEM CHARGES FOR STORAGE ASSETS

The CRU is consulting until 13 May 2026 on a minded-to interim decision that energy storage units should pay generator, not demand, transmission use of system charges. We look at the detail in our insights post: Energy Update: Network charging set to change for storage assets.

DATA CENTRES

The European Commission is consulting until 23 April 2026 on a draft Delegated Regulation to develop a common EU scheme for rating the sustainability of data centres in Europe. We look at key points in our insights post: Data Centres: EU consults on Regulation for rating sustainability.

RENEWABLE GAS TRANSMISSION TARIFFS

The CRU decided to apply GNI’s proposed interim tariff to all new renewable natural gas (“RNG”) entry points and to replace legacy arrangements by applying this tariff to existing biomethane facilities as well. The CRU invites views by 5 May 2026 on an enduring RNG distribution system tariff methodology.

FOSSIL FUEL FLEXIBILITY

Member States are required to adopt reports on estimated flexibility needs for the next five to 10 years in accordance with the requirements of Article 19e of the IME Regulation. An Information Paper on Ireland’s first flexibility needs assessment indicates that scope will include assessment of system level needs such as balancing, ramping and managing renewable variability; network level needs including local congestion and voltage management; constraints and where flexibility could help alleviate them; scale and timing of expected flexibility requirements; existing and potential flexibility solutions; market barriers; and the role of digitalisation. The report is anticipated in Q3 2026.

CONNECTION AGREEMENT LITIGATION

The High Court in Ireland held that EirGrid was entitled to terminate a connection agreement for a proposed 445 MW generating plant and retain the €4.45 million amount of the Maximum Export Capacity bond (Liberty Insurance Ltd v EirGrid plc [2026] IEHC 210) (PDF 843 KB). The generator failed to construct the facility by the contract long-stop date and EirGrid drew down the bond. The plaintiffs sought recoupment of the bond amount, arguing that the bond was an unenforceable penalty and that EirGrid acted unlawfully by drawing it down when other generators were treated more leniently. The Court held that the bond was a security mechanism mandated by the regulator, not a penalty, and that the alleged comparators were not in an analogous position to the plaintiff.

DEMAND SIDE UNITS

The SEM Committee published a set of proposed decisions to deal with the issue of missing money for demand side units (PDF 939KB) (“DSU”). It intends to publish shortly a consultation paper on the determination of a supplier compensation price for the payment it would require to be made between DSUs and suppliers. The SEM Committee intends to conclude on these proposed decisions and on determination of the supplier compensation price together.

ENERGY PRICES

The European Commission is expected to shortly publish proposals in response to the impact on energy prices of the war in Middle East, as further reported in the FT: EU climate chief warns there is ‘no workaround’ for high energy prices.

EU-GB ELECTRICITY TRADING

Council Decision (EU) 2026/813 formally authorises the European Commission to open negotiations with the UK on participation in the EU’s internal electricity market.