ACTS PASSED SINCE THE SPRING HORIZON TRACKER
Gas (Amendment) and Miscellaneous Provisions Act 2024
This bill amends the Gas Acts, to facilitate the integration of Ervia into Gas Networks Ireland.
Latest stage: This Act was signed into law by the President on 1 May 2024.
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. Listed for priority drafting in the Summer legislative programme. No further progress publicised at present.
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
Council Regulation on an Emergency Intervention to Address High Energy Prices
Date published: 6 October 2022
In response to rising energy prices, EU energy ministers reached agreement on 30 September 2022 at an extraordinary Council meeting on a regulation to introduce common measures across Europe to reduce electricity demand and to collect and redistribute the energy sector’s surplus revenues to final customers.
This Regulation has been described in previous Trackers and summarised in the terms below in quotation marks. At this point note that there is a period of review available and the review provisions apply until October 2024.
As of 6 October 2022, the EU Member States have formally adopted the regulation. 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. The Council agreed to cap the market revenues at 180 euros / MWh for electricity generators, including intermediaries, that use so-called inframarginal technologies to produce electricity, such as renewables, nuclear and lignite.
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) providing for a Commission review of Chapter II of the Regulation shall apply until 15 October 2024.
The Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Act 2023 was signed by the President on 17 November 2023 and is designed to implement these provisions. We will maintain a tracking service on this legislation as the provisions are due to apply until 15 October 2024. An update will be available in our Autumn 2024 Tracker.
EU LEGISLATION
Proposal for a Regulation to establish a framework of measures for strengthening Europe's net-zero technology products manufacturing ecosystem (Net-Zero Industry Act)
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 27 and 28 May this was adopted as a legislative act at the meeting of the Council Of The European Union (Agriculture and Fisheries).
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. The Committee on Industry, Research and Energy (ITRE), approved the provisional agreement on 23 January 2024 and the plenary on 11 April 2024.