Energy and Infrastructure

Key developments

RESS 6

The Department of Climate, Energy and Environment (“DCEE”) amended the RESS 6 Terms and Conditions: Renewable Electricity Support Scheme 6 (RESS 6) (PDF, 988 KB). Condition 5.2.6 is amended such that Support Payments will only be available for hours in respect of which:

The Market Reference Price equals or exceeds zero euro/MWh
No output was offered into the DAM or Intraday Market at a price of less than zero euro/MWh and no price in the Decremental Price Quantity Pairs applicable to the RESS 6 Project (or any equivalent offer made for the output of the RESS 6 Project in the Balancing Market) is less than zero euro/MWh
The RESS 6 Project is compliant with the dispatch instructions

Auction dates have been adjusted such that the final application withdrawal date is 6 October 2026.

ORESS

DCEE is consulting until 9 October 2026 on a high-level proposal for the inclusion of non-price criteria in future offshore renewable energy support schemes, pursuant to Article 26 of the EU Net Zero Industry Act.

It is proposed that Article 26 requirements will apply to all capacity offered in each ORESS auction that commences from 2026 onwards. DCEE indicates it will apply the three mandatory pre-qualification criteria (responsible business conduct, cybersecurity and ability to deliver). DCEE also proposes to apply resilience and sustainability (environmental sustainability, innovation, or energy system integration) as pre-qualification criteria rather than award criteria. DCEE seeks feedback on the inclusion of either or both of biodiversity impact and environmental sustainability within the environmental sustainability limb.

DATA CENTRE SUSTAINABILITY REQUIREMENTS

The European Commission published the Delegated Regulation establishing the common rating scheme for data centres. The Commission has also opened a call for evidence and public consultation until 14 December 2026 on a proposed Regulation for minimum performance standards for data centres operating in Europe.

We look at both developments in our Insights blog post: Data centres: New Regulation on rating scheme and consultation on minimum performance standards.

FAULT RIDE THROUGH DECISION

Rules on fault ride through for transmission-connected customers have been approved, along with a compliance and derogation framework with specific pathways for data centre and non-data centre customers.

Our Insights blog post is available here: Energy update: CRU decision on new requirements for demand customers (fault ride through).

CARBON BORDER ADJUSTMENT MECHANISM

Scope extension

The European Parliament adopted its text on the proposed Regulation to extend the downstream scope and anti-circumvention measures of the CBAM. The Council’s position has also been adopted (PDF, 776 KB) and the two institutions will now agree a final text.

Further information is available here: Extension of CBAM scope to downstream goods and anti-circumvention measures.

Non-EU operators

The European Commission published a series of ten guidance documents to help non-EU operators with the implementation of the CBAM during its definitive period.

FLEXIBILITY

The key findings of the CRU’s first National Flexibility Needs Assessment include:

System and transmission flexibility needs centre on managing surplus renewable generation. Distribution flexibility needs stem from localised capacity constraints
Flexibility is expected to complement, rather than replace, network reinforcement
Flexibility needs may be met through explicit flexibility products and more efficient market arrangements that strengthen signals and enable flexible resources to respond to system needs. It is not likely to be economic to meet all the identified needs, and some residual renewable dispatch down is expected to remain
Market, regulatory and operational barriers to flexibility exist, although good progress is already being made to enable and support flexibility

The next step is setting an indicative national objective for non-fossil flexibility in 2027, as required under EU law. The CRU will hold an Industry workshop in mid-October 2026.

On the demand side, the CRU has also published the National Energy Demand Strategy Demand Flexibility Forecasting Report 2026. The objective is to provide an update on the methodology and the resultant forecasts of demand‑side flexibility in 2024 to 2035 across three categories of demand-side flexibility sources: residential, commercial, and utility‑scale.

CAPACITY MARKET

The SEM Committee published its decision on the high-level principles for facilitating explicit cross-border participation in the SEM, with the intent of facilitating future participation of foreign capacity providers in the SEM Capacity Remuneration Mechanism. This would include French participants following commissioning of the Celtic Interconnector in 2028.

HIGH-LEVEL TARIFF DESIGN

The CRU is consulting until 22 October 2026 on its minded-to positions on the objectives, principles and scope of the Electricity Network Tariff Structure Review. It is the first significant review of electricity network use of system tariff structures in Ireland since the introduction of the existing structures in 2000.

A first phase is intended to establish a framework for reform by identifying the objectives of the project, its scope, and the principles against which future options will be assessed. In Q4 of 2026 the CRU intends to publish a decision on the current consultation. The CRU is minded to adopt a single objective: to promote cost-efficient use of the electricity network in the context of electrification and decarbonisation.

The focus would then turn to high-level tariff design choices. The CRU is seeking stakeholder feedback on the following tariff design choices:

Using a marginal cost or embedded cost approach to set network tariffs
Designing network tariffs to provide short-run or long-run cost signals
Designing network charges that vary by location
Designing network charges that vary according to the time the network is used
Introducing interruptible tariffs as a tariff option available to customers that accept a reduced level of firmness

Further EU developments

ELECTRICITY

Balancing: ACER has approved amendments proposed by the TSOs to the PICASSO and MARI platforms for exchanging balancing energy from frequency restoration reserve.

CARBON

EU ETS reform: The Council adopted its proposal on a Regulation amending the EU ETS Directive 2003/87/EC to increase free carbon allowances for sectors in the heat and fuel ETS benchmarks (PDF, 381 KB) with the aim of helping these energy-intensive sectors, which are at higher risk of carbon leakage, to remain competitive. It is part of the broader reform of the EU’s emission trading system (ETS). Further information is available on the European Council website: ETS: Council agrees targeted measure to protect energy-intensive sectors from carbon leakage.
Decarbonisation fund: The Parliament has adopted its position on the proposal (PDF, 264 KB) for a Regulation establishing a Temporary Decarbonisation Fund.
Market stability reserve: The Parliament has adopted positions on the proposals amending Decisions on ceasing invalidation of allowances in the market stability reserve (PDF, 148 KB) and on the market stability reserve for buildings, road transport and additional sectors (PDF, 165 KB). Further information is available on the European Parliament website: ETS: MEPs want to keep the market stability reserve invalidation mechanism.

TRANSPOSITION OF EU LAW

The European Commission opened infringement procedure against several Member States, including Ireland, for failure to fully transpose:

The new electricity market design rules on free choice of supplier and right to energy sharing set out in Directive (EU) 2024/1711, which amended the Electricity Directives and Renewable Energy Directive
The recast Hydrogen and Decarbonised Gas Directive (EU) 2024/1788

PROPOSED Industrial Accelerator Act

The Parliament published its draft report on the proposed Industrial Accelerator Act (PDF, 521 KB) (which includes amendments to the non-price criteria provisions for renewable energy auctions in the NZIA). The Parliament proposes to strengthen some of the changes proposed, for example by bringing in scope a greater percentage of auction volumes per year (raising the threshold from at least 40% of annual auctioned volume, or 8 GW/year, to at least 60%, or 12 GW/year). On weighting however, the Parliament proposes to delete the Commission's proposed minimum-weighting rule for non-price award criteria (which had set a minimum 5% weight per criterion and a combined 15–30% weight), rather than increasing it. Our briefing on the initial proposal by the Commission is available here: The EU Industrial Accelerator Act: Impacts on renewable energy auctions, public procurement and FDI.

REVISION OF THE TEN-E REGULATION

The Parliament lead Committee adopted its position on the revision of the Trans-European network Energy Regulation. Amendments include expanding the list of infrastructure priorities to be taken into account under the Regulation.

Further information is available on the European Parliament website: MEPs upgrade EU energy infrastructure rules to lower energy prices. The position has been approved by the Parliament in plenary and will now be negotiated with the Council.

ENERGY SECURITY

The Commission adopted a notice providing Member States with guidance on the possibility of extending the coverage of the National Escape Clause for defence to include energy security measures. The notice sets out the procedure for requesting fiscal flexibility, its treatment under the EU fiscal surveillance framework and the monitoring of its use.

CAPACITY BUILDING

An Energy Regulation Academy has been established to provide reform-oriented support to relevant Ministries and national regulatory authorities in EU Member States. The project will deliver residential trainings, thematic workshops and tailored consultations, to support the implementation of key reforms. Further information is available here: The Energy Regulation Academy.

ENERGY SUBSIDIES

A European Commission report shows that renewable energy subsidies across the EU were €76 billion in 2024, while fossil fuel subsidies were worth €97 billion.

SMR TECHNOLOGY

The EIB has invested in a small nuclear reactor project. Further information is available on the European Investment Bank website: EIB backs Finnish nuclear-technology company Steady Energy with €40 million financing.

Caselaw

Direct lines not merely an exceptional recourse according to CJEU

Joined Cases C-722/24 and C-756/24 involved two preliminary references from the Latvian Supreme Court concerning interpretation of “direct line” and other related provisions in the Electricity Market Directive.

Background

In C-722/24, Elektro bizness, an electricity generator and supplier operating a cogeneration plant, supplied electricity via an underground cable to the distribution system and separately to six industrial customers. Elektro bizness applied for an authorisation to construct an electricity line to link its existing line to a new customer. Once that line was constructed, the new customer was going to disconnect from the distribution system and become an “isolated customer”. The Regulator refused the request on the ground that the planned electricity line was not a “direct line”, since it would link the customer to an existing electricity line, not an electricity generation site.

In C-756/24, Autobusu parks, a company operating in the municipal passenger transport sector, applied for an authorisation to construct an electricity line linking a hydrogen generation plant it owned (to supply hydrogen-powered city buses) to a biomass cogeneration plant belonging to Gren Latvija. Autobusu parks considered this necessary to reduce the costs associated with its increased electricity supply needs. Once the planned line was constructed, Autobusu parks planned to purchase electricity directly from Gren Latvija and not use the distribution system, though it would maintain a connection for back-up purposes. The regulator refused the request on the ground that Autobusu parks could not be regarded as an “isolated customer” and there was no technical or economic justification for constructing the planned line because the distribution system could meet the electricity supply needs.

Ruling

The CJEU ruled that the concept of “direct line” covers lines falling into the above circumstances, namely a line linking:

A new customer to an existing electricity line, by which the owner of that line supplies other customers, without the involvement of the distribution system, even if that line extends beyond the location of the generation site concerned
A generator to a customer who wishes to maintain, in return for an appropriate financial contribution, a back-up connection to the distribution system, in the absence of exceptional circumstances such as the inability of the system operator to provide the customer with the necessary electricity supply (without prejudice to the limits in Article 7(2), (4) and (5) of the Electricity Directive)

In its reasoning, the CJEU noted that there are two separate limbs to the definition of “direct line”. The term “isolated” is absent from the second limb. As regards the second limb, the word “and” in the expression “linking a producer and an electricity supply undertaking” must be understood as meaning “or”. A line connecting a new customer to an existing line can still be a “direct line” since the decisive criterion is supply without intermediation of the distribution system. Requiring total disconnection from the distribution system as a condition for a direct line would conflict with the customer’s rights to free choice of supplier and free system access. The CJEU commented that direct lines are not merely an exceptional recourse.

AUTHORISATONS

In Case C‑556/25, a Slovak court asked the CJEU whether it is compatible with EU law for national legislation to exclude small-scale electricity producers operating under the simplified authorisation procedure in Article 8(3) of the Electricity Directive from legal easements over third-party land that remain available to holders of an ordinary Article 8(1) authorisation. The dispute arose after a small hydroelectric producer, operating under Slovakia’s simplified notification regime, was refused registration of a legal easement needed to access land occupied by its equipment, on the basis that only holders of a full authorisation could obtain such easements.

In an Opinion for the Court, Advocate General Campos Sánchez-Bordona considers that the matter falls within the scope of EU law, since the availability of a legal easement affects market access and therefore engages Article 8 together with the non-discrimination principle in Article 9(1). He proposes that Article 9(1), read in conjunction with Article 8(3), prevents a rule which, based on an ex ante and abstract assessment of the public interest, automatically deprives small-scale hydroelectric producers under the simplified procedure of an easement right that other electricity producers enjoy (unless the referring court can interpret the national legislation compatibly with the Directive).

Further domestic developments

HEAT NETWORKS

The Joint Committee on Climate, Environment and Energy recently consulted in relation to the proposal for a Heat (Networks and Miscellaneous Provisions) Bill 2026. The Bill will now undergo legislative scrutiny by the Committee.

LEGISLATION PROGRAMME

The Government’s legislation programme for Autumn 2026 (PDF, 553 KB) includes:

For priority publication: Renewable Heat Obligation Bill and Private Wires Bill
For priority drafting: Heat (Networks and Miscellaneous Provisions) Bill, Offshore Transmission Asset Investment Fund Bill (to facilitate €2 billion Government equity investment in EirGrid), Maritime Area Planning (Marine Protected Areas) (Amendment) Bill and Energy Performance of Buildings Directive Bill
All other legislation: Strategic Gas Emergency Reserve (Operational) Bill, Gas (Amendment) Bill, Electricity Ownership Unbundling Bill and Critical Infrastructure (Emergency Powers) Bill

EIRGRID STRATEGY

The EirGrid Group Strategy 2026 is intended as a roadmap to transform Ireland’s grid to support secure, clean and affordable electricity. It is built around four pillars relating to a safe, secure and resilient system, delivering grid infrastructure, enabling much higher levels of renewable electricity, clean technologies and a more flexible power system, and advancing offshore wind and interconnection.

Further CRU business

MARESCONNECT

The CRU issued a decision on the initial project assessment for the proposed MaresConnect 750MW electricity interconnector between Ireland and Great Britain. It decided to award the proposed MaresConnect interconnector a cap and floor regime, subject to a set of conditions, allowing the project to progress to the final project assessment stage.

GAS INSTALLERS

From 1 September 2026, individuals carrying out non-domestic gas works must be registered with the RGI scheme in accordance with the Electricity Regulation Act 1999. The CRU published a new version of its Gas Safety Supervisory Criteria Document, extending it to cover non-domestic, as well as domestic gas installers.

COMPLIANCE AND ENFORCEMENT

The CRU’s decision on approach to setting financial penalties on licence holders is available: CRU Compliance and Enforcement Policies.

CELTIC INTERCONNECTOR

The CRU published its approval of the Core CCR TSOs’ amendment to the methodology for splitting long-term cross-zonal capacity in preparation for linking the SEM to the EU via the Celtic Interconnector.

TEMPORARY EMERGENCY GENERATION

The CRU directed EirGrid to retain TEG arrangements to address forecast capacity shortfalls and mitigate risks during the winters of 2027/28 and 2028/29.

CUSTOMERS

The CRU is consulting until 9 October 2026 on changes to the Electricity & Gas Suppliers’ Handbook, primarily to ensure that Gas Pay As You Go requirements are incorporated.

Further SEM Committee business

SYSTEM SERVICES MARKET

The SEM Committee is consulting until 27 October 2026 on the proposed EirGrid and SONI TSO Licence Modifications and enduring conditions to establish the System Services Markets.

CAPACITY MARKET CODE

The SEM Committee has approved a modification which would mean that, where a unit terminates its capacity contract after achieving Substantial Financial Completion, it is barred from applying for the same terminated capacity in the next two consecutive T-1 Capacity Auctions held within the following 24 months. Termination before Substantial Financial Completion continues to be governed by the existing provision.

STRATEGY

The SEM Committee’s strategy for 2026-2031 has been published.

United Kingdom

GUIDANCE FOR IN-HOUSE LEGAL TEAMS

In the UK, the Law Society of England and Wales published climate change guidance for public sector and private sector in-house legal teams. It considers how professional duties are engaged by climate change, where climate-related legal risk arises in day-to-day practice, and proposes a practical checklist. While this guidance is for the profession in England and Wales, it may nonetheless be of interest to in-house teams as an indication of how climate-related legal risk is framed as a matter of core professional duty.

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