KEY DEVELOPMENTS
Permit-granting Procedures in Ireland
Renewable Energy Directive III requires marked improvement on permit-granting and grid-connection procedures for renewable energy project development and repowering.
The European Union (Planning and Development) (Renewable Energy) Regulations 2025 are a further step towards transposition of the Directive, albeit in relation only to the current planning permission framework, which is to be replaced. We look at the state of play of permit-granting procedures in Ireland, including in relation to grid connection, in our briefing: Renewable Energy: Update on Permit-granting Procedures in Ireland.
Our briefing references the CRU Information Notice on the first two rounds of batch processing under the new onshore connection policy, which eases certain requirements in light of timing of the new Planning Regulations.
- For the first batch (September 2025), alternative proofs to demonstrate prior submission of a planning application will be permitted. The requirement for the grid application to be submitted not greater than 15 calendar days following acknowledgement of completeness of the planning application is removed.
- For the second batch (March 2026), alternative proofs to demonstrate the prior submission of a planning application will be permitted, albeit that they must be dated before the 30 September 2025 Batch Closing Deadline.
Carbon Border Adjustment Mechanism
Our briefing on several developments in relation to the Carbon Border Adjustment Mechanism is available here: Carbon Border Adjustment Mechanism: Simplification and Next Steps.
In addition, the European Commission is consulting until 25 September 2025 on three Implementing Regulations setting out:
- the CBAM methodology for the definitive period starting on 1 January 2026, which will include methodologies for determining direct embedded emissions based on actual emissions, embedded emissions for electricity, and indirect embedded emissions, as well as the default values for goods other than electricity to be used when embedded emissions are not based on actual emissions;
- an adjustment of the obligation to surrender CBAM Certificates to take account of free ETS allowances, and
- rules for converting into a corresponding number of CBAM certificates the carbon price paid in a third country for declared embedded emissions, taking into account any compensation available in that country resulting in a reduction in the price.
Competitive MAC Framework
The Maritime Area Regulatory Authority is consulting until 30 September 2025 on the design of a Competitive Maritime Area Consent ("MAC") Framework. It is intended that the Framework will use site-specific criteria to assess applications when a site has been identified for a call for a competitive MAC. Criteria under consideration include price-based factors; criteria in Schedule 5 of the Maritime Area Planning Act 2021; non-price factors; or any combination of these.
Offshore Renewable Energy: Second Support Scheme Auction
EirGrid will hold an information session on 16 September 2025 and has published:
- ORESS Tonn Nua Checklist External Users
- ORESS Tonn Nua FAQ
- ORESS Tonn Nua Auction Platform Guide for External Users
Our briefing on the auction terms and conditions is available here: Offshore Renewable Energy: Ireland's Second Support Scheme Auction.
Electrification
The European Commission is calling for evidence and consulting until 20 November 2025 on: (1) an EU electrification Action Plan, and (2) an EU Heating and Cooling Plan. These plans are being developed in the context of the Clean Industrial Deal and the Action Plan for Affordable Energy, which we looked at in our briefing: Clean Industrial Deal: Crucial Role of the Energy Sector.
EU DEVELOPMENTS
Electricity
- Flexibility: ACER approved the methodology to be used for identifying national non-fossil flexibility needs (as required under Article 19e of the IME Regulation). The methodology distinguishes between two main types of flexibility needs: (i) network flexibility reflects the flexibility needed to adjust for grid availability, and (ii) system flexibility refers to the ability of the electricity system to adjust both power generation and consumption in response to signals from the market. The methodology is intended to provide a harmonised approach for SOs as they analyse national flexibility needs.
- Grids: ENTSO-E published its consultation response to the European Commission's Grid Package. It calls for streamlined planning and stronger regional coordination, accelerated permitting, adequate and accessible financing, and stronger supply chains and flexible procurements.
- Intraday Market: ACER is consulting until 26 September 2025 on the TSOs' proposal to harmonise gate closure time at 30 minutes before real-time delivery to meet the requirements of the Internal Market in Electricity Regulation.
- Resource Adequacy: The next edition of the European Resource Adequacy Assessment, a 10-year outlook to inform policy decisions on security of electricity supply, will be released in November 2025. ENTSO-E has also consulted on revision of the assessment methodology as required by the IME Regulation.
Gas
- Hydrogen: The Fourth Gas Package Regulation (EU) 2024/1789 allows Member States to provide for future hydrogen network users to pay part of the initial costs of networks by way of an inter-temporal cost allocation. ACER has now published a first Recommendation on inter-temporal cost allocation mechanisms for financing hydrogen infrastructure.
System Planning
ACER identified several areas for improvement for the scenario development process that underpins network development planning and resource adequacy assessment. ACER has also approved the European Resource Adequacy Assessment 2024 proposed by ENTSO-E.
REMIT
The European Commission is consulting until 15 September 2025 on a delegated regulation setting out further rules under REMIT for authorising and supervising Inside Information Platforms and Registered Reporting Mechanisms by ACER.
Carbon Capture and Storage
The European Commission is calling for evidence until 11 September 2025 for an impact assessment to develop a Regulation on CO2 transportation infrastructure and markets. It is intended to address barriers for cross-border transportation of CO2 through several mechanisms.
Digitalisation and AI
The European Commission is consulting and calling for evidence until 5 November 2025 in order to publish a Strategic Roadmap for digitalisation and artificial intelligence in the energy sector in Q1 of 2026. The aim is to accelerate the rollout of digital solutions in areas important to the decarbonisation process, such as electricity grid optimisation, energy efficiency in buildings and industry and demand-side flexibility. It is also intended to look at how data centres can be more sustainably integrated into the energy system.
Cybersecurity
A new EU Cybersecurity Reserve is intended to boost cyber resilience by supporting the response to and recovery from significant and large-scale cyber incidents. It is intended to comprise incident response services from trusted service providers and to be capable of use by entities operating in critical and highly critical sectors under the NIS2 Directive, including energy.
Global Climate & Energy Transition
The European Commission is calling for evidence until 11 September 2025 on the EU's global climate and energy strategy for 2025-2029 to ground its engagement in the UN Climate Change Conference, COP30.
DOMESTIC DEVELOPMENTS
Guarantees of Origin
European Union (Renewable Energy) Regulations (2) 2022 (Amendment) Regulations 2025 were made to give further effect to Article 19 of RED III. They are concerned with providing for Guarantees of Origin in district heating and cooling.
Energy produced from Biomass
Article 3 of RED III sets out the binding overall EU renewable energy target for 2030, and Article 3(3) requires Member States to "take measures to ensure that energy from biomass is produced in a way that minimises undue distortive effects on the biomass raw material market and an adverse impact on biodiversity, the environment and the climate". It also provides a derogation from the application of the cascading principle for the use of biomass in the production of energy. The Department of Climate, Energy and the Environment is developing an approach to the transposition of Article 3(3) to include consideration of derogation options.
Distribution Network Development Plan
ESBN is consulting until 19 September 2025 on a Network Development Plan to assess the capacity of the network to accommodate customer needs over the next five to 10 years and to identify areas of the network that require investment to address constraints.
Sectoral Adaptation Plan
DCEE is consulting until 5 September on the Statutory Adaptation Plan for the Electricity and Gas Networks Sector. Three goals with associated objectives have been developed: (i) establishing structures to strengthen and enable action to increase resilience; (ii) strengthening capacity of the sector to ensure long-term resilience; and (iii) delivering a sustainable and resilient sector.
Electricity (Supply) (Amendment) Bill 2025
Approval for priority drafting for an Electricity (Supply) (Amendment) Bill 2025 has been given. The press release indicates that the purpose is to enhance resilience of the grid by providing ESBN with additional vegetation management powers; enabling the Minister to make regulations on the dimensions and conditions of corridors; attaching responsibilities to landowners for corridor maintenance; establishing principles for the compensation of landowners affected by forestry corridor works; and disapplying the Planning and Development Act 2000 for the associated works, while confirming continued application of the environmental obligations under the EU Habitats and Birds Directives.
FURTHER CRU BUSINESS
Gas Ten Year Network Development Plan 2024 and 2025/2026 Tariffs
The CRU approved GNI's draft TYNDP for final publication. The CRU notes, however, that the Plan does not account for uncontracted large energy user gas demand. The CRU has also published tariffs rates for the forthcoming tariff year.
Electricity Transmission Network
The CRU's Information Paper on Transmission Network Allowed Revenues for 2026 and Demand Transmission Use of System Tariffs for 2025/26 is available. The final 2026 allowed revenues of €1,389.79 million leads to a tariff year revenue of €1,395.64 million, to be recovered during the tariff year 2025/26. The CRU indicates that this represents an increase of circa 6.5% compared to the revenue approved for recovery during the 2024/25 tariff year.
Electricity TSO Licence: Standards of Performance
The CRU has decided to specify 21 conditions of the TSO licences (in full or in part) as standards of performance. Part IX of the Electricity Regulation Act 1999 provides for administrative sanctions for improper conduct which includes failure of a licence holder to comply with standards of performance.
Public Service Obligation
The PSO applying electricity customer for 2025/2026 is available here (CRU/2025/108). A final PSO Levy of €162.37 million will be required for the 2025/26 PSO year, which is a decrease of €89.42 million on the 2024/25 PSO Levy.
Stakeholder Engagement
Recommendations following the annual evaluation of Electricity Networks Stakeholder Engagement Evaluation Panel, formed under PR5, are available (CRU/2025/111). The recommendations include:
- information provision regarding connections should be improved, especially concerning the firm dates. Work still needs to be conducted to improve engagement and demonstrate market participant perspective for connections,
- the industry liaison group should be reviewed for areas of improvement on renewable connection issues, ensuring that connections are dealt with in a timely manner,
- ESBN should consider the addition of a parallel Renewables Industry Liaison Group for larger-scale generators or offshore developers to better engage with both community-scale and commercial-scale renewables,
- it would be helpful if an organisation chart or high-level contacts could be provided, to help stakeholders understand the right person/department to approach for the different associated items, and
- it would be useful for stakeholders to understand the interaction between EirGrid and ESBN.
SEMC BUSINESS
Capacity Market Auction
Auction parameters and briefing note for exception application and opt-out notification process for T-4 CY2029/30 are available. The SEMC is also consulting until 5 September 2025 on terms of reference for Year 7 market audit.
Capacity Market Code
Modification CMC_03_25 to the Capacity Market Code has been approved. The SEMC indicates it was raised by the TSOs and seeks to provide clarity on the treatment of multiple tranches of Awarded New Capacity in the calculation of Proportion of Delivered Capacity across multiple auction years.
SEM
The SEMC is consulting until 5 September 2025 on parameters used in Scheduling and Dispatch and operational parameters. Revenue requirements of SEMO for October 2024 to 30 September 2029, and for SEMOpx for the 2025/6 tariff year, have been published. Proposed terms of reference for the 2025 market audit are available.
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.
