ARTICLE
16 January 2025

Energy - Horizon Scanner: Infrastructure, Construction, Energy, January 2025

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Terms and conditions for a fifth onshore renewable electricity support scheme are undergoing consultation.
European Union Energy and Natural Resources

KEY DEVELOPMENTS

RESS 5

Terms and conditions for a fifth onshore renewable electricity support scheme are undergoing consultation. Our briefing is available here. Consultation is also ongoing on community benefit funds under RESS (available here), with a stakeholder workshop set for 23 January 2025. Both consultations are open until 14 February 2025.

EU DEVELOPMENTS

Offshore Renewable Electricity

The EU announced that countries agreed non-binding commitments to new levels of ambition to instal approximately 88 GW of offshore renewable generation capacity by the end of the decade, rising to 360 GW by mid-century. ENTSO-E is to update the strategic integrated offshore network development plans to give visibility on anticipated offshore grids for each sea basin by 2050.

Grid Action Plan

EU Energy Ministers outlined follow-up actions to the Grid Action Plan. Conclusions include that grid investment needs to be doubled so that approximately €67 billion is invested per year from now until 2050. ACER recently published reports on electricity infrastructure and security of electricity supply here, which include recommendations to grid developers, regulators and governments on focused and timely grid development. ENTSO-E has also reported on its strategy for promoting technology uptake for smart grids and network efficiency via a new tool described here.

Decarbonisation of Heating and Cooling

EU Energy Ministers have approved Council conclusions on the promotion of geothermal energy. They highlight the potential of geothermal energy as a local renewable energy source. The Council called for faster deployment by adopting rules for promotion, access to finance, and enhancing workforce and research. It directed the Commission to design a strategy on decarbonisation of heating and cooling and a geothermal action plan with measures to facilitate projects.

Regulatory Work Programme

ACER's programming document 2025-27 and annual work programme are available here. The 2025 programme incorporates additional tasks arising from new legislation on hydrogen and decarbonised gas, methane emissions, reform of electricity market design, and REMIT.

Electricity

  • Grid Connection: ACER proposes amendments to the HVDC Network Code in light of the growing role of offshore power park modules, demand facilities, power-to-gas units (such as electrolysers for renewable hydrogen), electricity storage, and HVDC systems connecting isolated networks. The next step is adoption by the Commission.

Gas

  • Hydrogen: ACER's opinion on the draft statutory documents to formally establish the European Network of Network Operators for Hydrogen is available. ENTSOG invites comments until 20 January on a draft hydrogen infrastructure gaps identification report for the TYNDP 2024.
  • Capacity Allocation: ACER proposes improvements to the Capacity Allocation Mechanism Network Code to take into account decarbonisation goals and the evolving gas market.
  • Recognition of schemes to demonstrate compliance with the Renewable Energy Directive: Commission Implementing Decision (EU) 2024/3180 recognises the CertifHy voluntary scheme for the purpose of demonstrating compliance with renewable fuels of non-biological origin requirements. Commission Implementing Decision (EU) 2024/3181 recognises the Programme for the Endorsement of Forest Certification: PEFC voluntary scheme for demonstrating compliance with the requirements for biomass fuels. Commission Implementing Decision (EU) 2024/3191 recognises the Sustainable Biomass Program voluntary scheme for demonstrating compliance with the requirements for biomass fuels. Commission Implementing Decision (EU) 2024/3194 recognises the REDcert-EU voluntary scheme for demonstrating compliance with the requirements for biofuels, bioliquids, biomass fuels, renewable fuels of non-biological origin and recycled carbon fuels.
  • Quality: A first gas quality monitoring report has been published by ENTSOG.

Carbon

  • Carbon Border Adjustment Mechanism: Commission Implementing Regulation (EU) 2024/3210 laying down rules for the CBAM registry is in force. This follows the requirement under the CBAM Regulation for the Commission to establish a standardised and secure electronic database for CBAM certificates management, CBAM declarations, applications to become authorised CBAM declarants, and registration of operators and of installations in third countries.
  • Carbon Certification: Commission Implementing Decision (EU) 2024/3176 indicates that the Commission has assessed as compliant with certain EU requirements further elements of the International Sustainability & Carbon Certification – ISCC EU voluntary scheme.

REMIT

ACER updated its Guidance in light of revisions to the REMIT Regulation, and updated the transaction reporting user manual and guidance on reporting LNG market data.

Investment

The Commission reported on implementation in 2023 of the Innovation Fund, intended to support innovative commercial zero-carbon and low-carbon technologies. Ireland is one of the countries that is underrepresented in terms of the amount of funding awarded.

Statistics

According to Eurostat, in 2023, 24.5% of gross final energy consumption in the EU came from renewable sources, which was up by 1.4% compared to the previous year.

Right to Clean Energy

A Commission report considers the legal space for a climate and energy union and the extent of individual rights relating to sustainable energy.

"The EU announced that countries agreed non-binding commitments to new levels of ambition to instal approximately 88 GW of offshore renewable generation capacity by the end of the decade, rising to 360 GW by mid-century.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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