ACTS COMMENCED SINCE THE AUTUMN/WINTER HORIZON TRACKER
Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Act
The purpose of this Act is to give full effect to Articles 6, 7, 8 and 10 of Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices ("Emergency EU Regulation") and for that purpose to implement a cap on market revenues received by generators from the sale of electricity produced from certain sources (including wind and solar energy) for the period beginning on 1 December 2022 and ending on 30 June 2023, and other related matters.
This Act follows the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 (commenced on 28 July 2023) which was enacted give effect to Articles 14, 15, 16 and 18 of the Emergency EU Regulation, providing for the payment of a 'temporary solidarity contribution' by companies active in the fossil fuel sector in respect of taxable profits in the years 2022 – 2023. For further details please see below regarding the terms of the Regulation.
The measures required to be introduced in Ireland pursuant to the Emergency EU Regulation were originally intended to be implemented under one piece of legislation, as set out in the General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023 published 21 March 2023. However, these measures have been introduced separately (under this Act and the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 respectively) due to the complexity of the subject matter.
Latest Stage: Signed into law by the President on 17 November 2023. The whole act was commenced on 4 December 2023.
IRISH PROPOSED LEGISLATION
Heat Bill
District heating has the potential to supply low carbon heat to homes and business from a central source. There is current only one small scale district heating scheme operational in Ireland, however a recent study by the Sustainable Energy Authority of Ireland (the National Heat Study 2022) found that up to 54% of heat demand in Ireland could be provided by district heating from renewable heat. The purpose of this bill is to establish a regulatory model for district heating that ensures consumer protection and the delivery of a vibrant district heating industry, and to mandate all Public Sector buildings and facilities to connect to district heating where it is available and is technically, and economically feasible.
Latest Stage: Heads of bill are in preparation.
BILLS
Gas (Amendment) Bill
This bill amends the Gas Acts, to facilitate the integration of Ervia into Gas Networks Ireland.
Latest stage: Committee stage, Seanad Éireann.
Just Transition Bill
This bill will establish a statutory Just Transition Commission, as proposed under the Climate Action Plan 2023. It is proposed that this Commission would be responsible for providing evidence based, independent advice to the Government on the just transition implications of climate policy development and implementation.
Latest stage: Heads of bill are in preparation.
EU REGULATIONS
Proposal for a Regulation on Substances that Deplete the Ozone Layer
Procedure reference: 2022/0100/COD
Date published: 5 April 2022
Ozone depleting substances are human-made chemicals which damage the ozone layer and also have high global warming potentials. Following the adoption of the Montreal Protocol on Substances that Deplete the Ozone Layer in 1987, positive benefits have been achieved both in relation to reducing the ozone hole and global warming.
Regulation (EC) No 1005/2009 (the "ODS Regulation"), is the primary legislation dealing with ozone depleting substances in the EU. The regulation was submitted for a 'REFIT' evaluation, which suggested a number of improvements, including better alignment with the European Green Deal. This proposal would replace the ODS regulation setting out additional emission reductions to further align with the Green Deal, provide enhanced monitoring of ODS including uncontrolled substance, and improve the efficiency of existing rules to reduce administrative costs and generally improve the coherence with other rules.
Latest stage: The Regulation was signed into law on 7 February 2024 and entered into force on 27 February 2024.
Council Regulation on an emergency intervention to address high energy prices
Date published: 6 October 2022
On 30 September 2022, EU energy ministers reached agreement at an extraordinary Council meeting on a regulation to introduce a number of exceptional measures to reduce the impact of high energy prices on consumers across Europe , including, for example, reducing electricity demand and collecting and redistributing the energy sector’s surplus revenues to final customers.
As of 6 October 2022, the EU Member States have formally adopted the regulation. However, due to the discretion afforded to EU Member States regarding how to apply certain measures, some national implementing legislation is required to give full effect to the regulation (eg, the Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill introduced to give effect to the electricity market revenue cap).
The measures are temporary and extraordinary in nature and will apply from 1 December 2022 to 31 December 2023, and it is estimated that during this time that they will raise €140 billion. The Council regulation sets a voluntary overall reduction target of 10% of gross electricity consumption and a mandatory reduction target of 5% of the electricity consumption in peak hours. Member States will identify 10% of their peak hours between 1 December 2022 and 31 March 2023 during which they will reduce the demand.
Member States will be free to choose the appropriate measures to reduce consumption for both targets in this period.
Latest stage: Applies until 31 December 2023 with the following exceptions:
- Article 4 apply from 1 December 2022 to 31 March 2023;
- Articles 5 and 10 applied from 1 December 2022
- Articles 6, 7, and 8 apply from 1 December 2022 to 30 June 2023
- Article 20(2) shall apply until 15 October 2024
The government has passed the Energy (Windfall Gains in Energy Sector) Act 2023 and the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 for the purpose of implementing this regulation.
EU DRAFT LEGISLATION
Procedure reference: 2023/0081 (COD)
Date published: 16 March 2023
The Net-Zero Industry Act aims to scale up the manufacturing of 'net-zero technologies' (such as renewable energy technologies, electricity and heat storage technologies and alternative fuels) which are key to achieving climate-neutrality. It aims to simplify the regulatory framework for the manufacturing of these technologies and therefore help increase the competitiveness of the net-zero technology industry in Europe. The Net-Zero Industry Act would introduce a number of measures including (i) a streamlined permit-granting process for net-zero technology manufacturing projects (through a proposed "one stop shop" mechanism), (ii) the establishment of European Net Zero Academies to develop training programmes regarding the installation, commissioning, operation and maintenance of net-zero technologies, and (iii) the establishment of a Net-Zero Europe Platform to advise and assist Member States in achieving their objectives under the Net-Zero Industry Act.
Latest Stage: On 6 February 2024, informal agreement was reached following trilogue negotiations the European Parliament, Commission and Council.
Proposal for a Revised Gas Regulation
Procedure reference: 2021/0424 (COD)
Date published: 15 December 2021
Complementary to the EU’s ‘Fit for 55’ package, the Commission has proposed a new regulatory framework which aims to decarbonise gas markets, establish a competitive hydrogen market and reduce methane emissions. As part of this framework, the Commission is proposing to recast Regulation (EU) No 715/2009 (the “Gas Regulation”). The recast Gas Regulation prescribes rules for access to natural gas and hydrogen systems with a view to ensuring the functioning of internal EU gas markets.
Latest stage: On 8 December 2023, informal agreement was reached following trilogue negotiations the European Parliament, Commission and Council.
Proposal for a delegated regulation establishing a sustainability reporting scheme for data centres in Europe (the "Delegated Data Centre Act")
Procedure reference: N/A
Date published: 12 December 2023
The Commission has proposed the Delegated Data Centre Act (a form of secondary EU legislation) to create a reporting scheme for the energy efficiency of data centres, as foreseen under the recast Energy Efficiency Directive (which came into force on 10 October 2023) ("EED"). Amongst other things, the EED introduced a requirement for data centres to publish information on their energy performance and sustainability. In this regard, the Delegated Data Centre Act requires data centre operators to report information and key performance indicators (regarding environmental and energy performance) to a European wide database.
Latest stage: The 4 week consultation period for the delegated regulation ended on 15 January 2024. The next step is for the Commission to adopt the Delegated Data Centre Act.