On 11 September 2024, the European Commission published the State of the Energy Union report which describes how the EU has managed unprecedented challenges in the energy policy landscape during this Commission's mandate, equipping the EU with a regulatory framework for pursuing the clean energy transition and laying the foundations for renewed economic growth and competitiveness.

Key legislative updates in the EU energy sector

The European Union has recently taken significant steps in its energy legislation to support its climate neutrality objectives for 2050 and emission reduction targets for 2030. The following legislative measures have been introduced or entered into force:

1. Renewable Energy Directive (RED): Enhancements to the RED focus on increasing the share of renewable energy sources, streamlining permitting processes, and integrating renewables into the EU energy grid
2. Energy Efficiency Directive (EED): Stricter requirements for energy consumption reduction across member states, promoting sustainable practices and efficient use of energy.
3. Energy Performance of Buildings Directive (EPBD): Mandates to improve energy efficiency in the building sector, with targets for new constructions and renovations.
4. Hydrogen and Decarbonised Gas Markets Package: Comprehensive regulations to facilitate the adoption of hydrogen and other low-carbon gases.
5. Methane Emissions Regulation: A groundbreaking regulation to monitor and reduce methane emissions in the energy sector.
6. Electricity Market Design Reform (in detail on pages 6-7): Aims to create a more resilient and consumer friendly energy market while ensuring security of supply.

Extension of the Emissions Trading System (ETS): Inclusion of new sectors and tightened caps to strengthen the EU’s carbon pricing mechanism.

Achievements in 2024:

• Record Renewable Installations: In 2023, the EU installed 56 GW of new solar capacity, with renewables accounting for 50% of electricity generation in the first half of 2024.
• Reduced Dependency on Russian Energy: Imports of Russian gas have fallen from 45% of total EU imports in 2021 to 18% by mid-2024. Similar reductions have been achieved for coal and oil imports.
• Progress in Energy Security: Gas storage reached a record 90% capacity by mid-August 2024, ensuring resilience for winter energy demands.

Key Achievements Under the Fit-for-55 and REPowerEU Plans:

• Energy Efficiency Gains: Primary energy consumption has declined, moving closer to the 2030 targets.
• Decarbonisation Milestones: The EU’s greenhouse gas emissions are 32.5% lower than 1990 levels, and the Emissions Trading System (ETS) has expanded to include maritime transport.
• Renewable Energy Expansion: Wind and solar energy installations have surged, with wind surpassing gas generation as the second largest electricity source after nuclear.
• Diversification of Energy Imports: Norway and the U.S. have become the EU’s largest suppliers of pipeline and LNG gas, respectively, replacing Russian imports.
• Support for Clean Energy Technologies: Initiatives like the European Solar PV Industry Alliance and the European Industrial Alliance on Small Modular Reactors (SMRs) have been launched to strengthen the clean energy sector.

Economic and Employment Benefits

• Job Creation: REPowerEU targets are projected to create over 3.5 million jobs by 2030, emphasizing the economic opportunities in the energy transition.
• Competitiveness: The Net-Zero Industry Act and Critical Raw Materials Act aim to ensure resilient supply chains and support for European manufacturers in the global clean energy market.

Challenges and Future Steps

• Addressing Ambition Gaps: More robust measures are required to meet the 2030 renewable energy and efficiency targets.
• Energy Poverty: Tackling high energy costs remains a priority, with targeted interventions to shield vulnerable populations.
• Grid Modernization: The Grids Action Plan addresses challenges in expanding and digitalizing electricity infrastructure across the EU.

EU Initiatives to Watch

• European Hydrogen Bank: Supporting hydrogen investments and market development with new auctions and funding mechanisms.
• Aggregate EU Platform: A permanent tool for joint purchasing of natural gas and strategic commodities, enhancing energy security.
• European Net-Zero Academies: Providing workforce training in renewable energy, hydrogen, and other key sectors.
• Expansion of LNG Infrastructure: New terminals and expansion projects have increased the EU’s LNG import capacity, improving energy security.
• European Renewable Energy Auctions Platform: A new platform to consolidate information on planned renewable energy auctions across the EU, streamlining investments in the sector.

17 January was the deadline for EU member states to transpose the new electricity market design rules into national law. These rules have been created to tackle rising energy prices. They aim to make energy prices more stable and predictable for consumers and less dependent on the price of fossil fuels.

Member States were required to take national measures to:

• Energy costs which are more reflective of (cheaper) renewable energy and also more predictable.
• Wider choice of consumer contracts and clearer information before signing contracts.
• Option to lock in secure, long-term prices. 
• Dynamic pricing contracts, if needed, to take advantage of price variability to use electricity when it is cheaper.
• Protection from being without electricity through the establishment of suppliers of last resort. 
• Protection from disconnection for those who are vulnerable or energy poor.
• More opportunities for energy sharing, for example, tenants will be able to share surplus rooftop solar power with a neighbour.

According to EUR-Lex, the vast majority of EU member states have failed to transpose the New Market Design Directive into national law.

On 23 January during the World economic forum in Davos a new Global Energy transition Forum was launched by European Commission President Ursula von der Leyen along with international partners with the objective of reaching for ambitious climate targets at world level and supporting countries for whom the clean transition is more challenging.

• The forum aims to:
  1. Maintain momentum on global energy agreements and integrate these targets into new Nationally Determined Contributions (NDCs) ahead of the COP.
  2. Transform these targets into concrete projects that benefit people, such as bringing power to underserved communities and scaling up clean energy globally.
  3. Unlock more investment through smart finance, de-risking tools, blended finance, and other creative solutions to attract private capital.
• President von der Leyen highlighted the unprecedented levels of world spending on clean energy. “Last year alone, global spending on clean energy hit a record USD 2 trillion. For every dollar invested in fossil fuels, you had two dollars invested in renewable energy. In the power sector, clean energy investments outnumber fossil fuels ten to one. This is a shift we have been working towards for years,” she remarked.
• Challenges: Despite progress, regions like Africa still struggle to benefit from the clean energy transition, receiving only 2% of clean energy investment despite having 60% of the world’s best solar resources.
• Scaling Up Manufacturing: The forum also focuses on scaling up manufacturing to improve grids and storage capacity, requiring massive investment that no single company or country can undertake alone.
• The President concluded saying: “I want to be very clear with my message: Europe stays the course and we stand ready to work with all global actors to accelerate the transition to clean energy.”

The European Commission has published a new study that provides an in-depth look at the state of net-zero technology manufacturing across the EU. The study highlights advancements in key sectors such as wind, solar, batteries, carbon capture, and heat pumps. It aims to fill data gaps and offer a reliable assessment of the manufacturing capacities for these technologies in all 27 EU countries.

Key findings include:

• 1. Manufacturing Capacity: A detailed mapping of the current manufacturing capabilities for net-zero technologies in each EU country.
• 2. Policies and Incentives: Analysis of the national policies and incentives that support the growth of manufacturing capacities. This includes regulatory frameworks, investment incentives, and skills development programs.
• 3. Challenges and Opportunities: Identification of bottlenecks in the manufacturing process and potential opportunities to increase production capacity.
• The study also highlights best practices in policy frameworks and notes that nearly three-quarters of EU countries have introduced incentive programs to boost investments in net-zero technology manufacturing. At the EU level, the Net-Zero Industry Act aims to enhance manufacturing capacity by addressing barriers to scaling up production in Europe.
• The report and its summary can be found here: The net-zero manufacturing industry landscape across the Member States European Commission.

The European Commission recognizes the importance of involving young people in policymaking processes and ensuring they are well-informed and actively participating in the energy transition.

• Youth Involvement: The European Commission aims to enhance youth participation in energy policy discussions, recognizing that 67% of young people see EU actions impacting their daily lives.
• Employment and Skills: The renewable energy sector is growing, with significant job opportunities expected. By 2030, 3.5 million new jobs will be needed, particularly in wind and photovoltaic sectors.
• Education and Awareness: The Commission is stepping up its efforts to provide information and tools for young people to get involved in the energy sector and to remove barriers such as lack of information and relevant curricula.
• Young Energy Ambassadors: Launched in 2023, this program selects 30 young people annually to promote engagement and awareness about EU energy policies.
• Educational Initiatives: The ‘Back to School’ initiative and e-learning content on the EU Academy website aim to educate students about energy, climate, and environment issues.

The Commission, the EU Agency for the Cooperation of Energy Regulators (ACER) and the Renewables Grid Initiative (RGI) have launched a survey on enhancing regulatory environments for stakeholder engagement in electricity infrastructure projects in the EU, under the EU’s Pact for Engagement.  The survey will be open for 4 weeks, i.e. until 23 February 2025.

• Purpose: To understand practices, opportunities, challenges, and enabling conditions related to regulatory and legal frameworks of stakeholder engagement.
• Target Audience: Grid operators across Europe (TSOs and DSOs) and National Regulatory Authorities (NRAs).
• Outcome: Results will contribute to enhanced regulatory environments and will be presented at the 11th Energy Infrastructure Forum in June 2025 and at the Pact for Engagement Stakeholder Meetings.
• Survey link: EUSurvey – Survey.

Energy and Petroleum

The Presidency of the Republic modified the name of the Ministry of the Popular Power for Petroleum, which is now called Ministry of the Popular Power for Hydrocarbons. (Official Gazette of 12/17/2024. Decree No. 5.061. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during August, September, and October 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for August, September, and October 2024 are: 59.26%, 59.23% and 59.30%, respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during the aforesaid months. (Official Gazette of 12/06/2024 and 12/19/2024. Administrative Rulings Nos. SNAT/2024/000108, SNAT/2020/000109, and SNAT/2020/000123).

A Presidential Decree extended until 06/09/2025 the validity of Decree No. 4.525 (Decree of Optimization and Revitalization of Exportation Processes) published in Official Gazette of 06/09/2021. Therefore, the exemptions from the exportation legal regimes indicated in said Decree No. 4.525 continue to be in force. (Official Gazette of 12/16/2024. Decree No. 5.058. Entry into force: As from 12/09/2024). The SENIAT established the schedule of Special Taxpayers and Withholding Agents for the obligations to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000118. Entry into force: Upon publication in the Official Gazette). The SENIAT established the schedule of Taxpayers not Categorized as Special Taxpayers for activities of games of chance to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000119. Entry into force: As from the date of publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the use of digital media for the issue of invoices and other fiscal documents. For purposes of said Ruling, other documents refer to debit notes, credit notes, delivery orders or waybills and withholding certificates. The taxpayers subject to the obligation to use digital media for the issue of invoices and other documents must perform said obligation as from the first day of the third calendar month after the entry into force of the aforesaid Administrative Ruling. The provisions of said Administrative Ruling will not be applicable to the invoicing by telephony services intermediaries as established in Administrative Ruling No. 0474, published in Official Gazette of 10/01/2004. Administrative Ruling No. SNAT/2014/0032, published in Official Gazette of 09/02/2014, which rules the use of different media for the issue of invoices and other documents by suppliers of mass services, was repealed. The authorizations granted under the validity of said Administrative Ruling No. SNAT/2014/0032 continue to be in effect. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000102. Entry into force: Upon publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the conditions and requirements to be met by the providers of information technology systems used for the issuance of invoices and other fiscal documents, in order to be homologated and authorized by the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT). (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000121. Entry into force: Upon publication in the Official Gazette).

The SENIAT established the schedule for declaration and payment of the special contribution for protection of social security pensions in the face of the imperialist blockade to be performed in year 2025. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000120. Entry into force: As from the date of publication in the Official Gazette).

Presidential Decree No. 5.071 established as follows: (i) an exemption of ninety percent (90%) from import duties and from value added tax is established for the final importation of new or used corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix 1 to Decree No. 5071. This benefit operates by reason of law only; (ii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix II to Decree No. 5.071.

This exemption is subject to the Certificate of No National Production or Insufficient National Production (Certificado de No Producción Nacional o Producción Nacional Insuficiente (CON or CPNI); (iii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Mining Ecological Development or the entities assigned to it and that made exclusively by the Corporación Venezolana de Guayana (CVG) or the companies assigned to it, classified in the schedule of customs duties indicated in Appendix III to Decree No. 5.071; (iv) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Attention to Waters or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix IV to Decree No. 5.071; (v) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Electric Energy or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix V to Decree No. 5.071; (vi) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by Corporación Socialista del Cemento (CSC) and the companies assigned to it, classified in the schedule of customs duties indicated in the Decree; (vii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property made exclusively by Corporación Venezolana de Comercio Exterior (CORPOVEX), classified in the schedule of customs duties indicated in the Decree. The exemption benefit will apply as of the date of recording of the relevant Customs Declaration for importation. The exemption benefits established in the Decree will apply from 01/01/2025 to 03/31/2025. (Official Gazette No. 6.869 Extraordinary of 12/27/2024. Decree No.5.071. Entry into force: Upon publication in the Official Gazette).

Labor

A Presidential Decree established a fire freeze in favor of the workers of the public and private sectors from 01/01/2025 up to and including 12/31/2026. As a result of the foregoing, the workers protected by the fire freeze may not be dismissed or transferred, nor may their employment conditions be worsened, without a justified cause approved by the Labor Inspector. The fire freeze will apply to the workers referred to in article 87 of the Organic Law of Labor and Workers. Workers of direction and casual or temporary workers are exempted from this Decree. (Official Gazette No. 6.868 Extraordinary of 12/27/2024. Decree No. 5.070. Entry into force: As from 01/01/2025).

TELECOMMUNICATIONS The National Telecommunications Commission determined the portions of the radio spectrum that will be submitted to the public offering procedure, in accordance with the provisions of the Organic Telecommunications Law and other applicable provisions. The National Telecommunications Commission may only assign through the public offering procedure the portions of the radio spectrum that the Administrative Ruling indicates in accordance with the attribution established in the National Chart of Frequency Band Attribution. Administrative Ruling No. 011, published in Official Gazette of 04/27/2016, was repealed. (Official Gazette of 12/03/2024. Administrative Ruling No. 113. Entry into force: Upon publication in the Official Gazette. It will have the character of annex to the National Telecommunications Plan).

Miscellaneous

The Ministry of the Popular Power for National Trade declared the following standard as Venezuelan COVENIN Standard of national character: Standard 2257-1:2024 “Installations of ionizing radiations. Part 1: Classification, delimitation, and demarcation of work environments. Requirements. (2nd. Review).” The content of said Standard will be published in the institutional site of the Deconcentrated Service of Standardization, Quality, Metrology, and Technical Regulations (Servicio Desconcentrado de Normalización, Calidad, Metrología y Reglamentos Técnicos - SENCAMER) (www.sencamer.gob.ve). (Official Gazette of 12/16/2024. Resolution No.091/2024. Entry into force: Upon publication in the Official Gazette).

Banking and Finance

Paraguay reaches investment grade for the first time in its history

The risk rating agency Moody's announced that it raised Paraguay's credit rating from Ba1 to Baa3, granting it investment grade for the first time in its history, reported the Ministry of Economy and Finance (MEF) on past July 24, 2024. Paraguay joins a select group of countries in the region to have the sovereign degree, Chile, Colombia, Mexico and Peru.

In a statement, they indicated that this stable outlook is reached after 26 years when the rating agency assigned a rating to Paraguay for the first time and after 9 years since the last upward review. "This unprecedented achievement is based on the country's solid economic fundamentals and its long history of macroeconomic stability," the MEF said.

They claim that it is the result of more than 20 years of responsible, consistent and predictable public policies. Prudent management of macroeconomic policies was able to achieve and preserve the sustainability of public finances and maintain low inflation

Tax

Agreement between Paraguay and Spain to avoid double taxation finally in force

After ratification by Paraguayan Law Nr. 7.271/2024 and publication in the Official bulletin of the Spanish Kingdom on July 29, 2024, said important agreement for the economic relationships between both countries shall be in force starting October 14, 2024, having effect for all tax purposes since January 1, 2025.

The agreement comprehends the Personal Income Tax, Corporate Tax and Non Resident income taxes in both countries (the so called IRP, IRE and IDU, and INR in Paraguay and IRPF, IS and IRNR in Spain) document observes OECD standards and includes measures to prevent tax base erosion and profit shifting (BEPS), affecting to Personal and Company income taxes in both countries (including income taxes for non-residents), which must now be ratified by the respective Congresses for its entry into force. Model Tax Convention on Income and on Capital 2017 shall be applicable for the interpretation of articles 5 (permanent establishment) and 7 (entrepreneurial benefits) of said Agreement.

Energy

Amendment of Law "On the Independent Production and Transmission of Electric Energy (PTIEE)"

On August 20224 Law No. 7299/2024 that amend Law Nr. 3009/2006 was enacted to foster private investments for the generation of renewable electricity through small hydroelectric plants (SHPs), by introducing correction of concepts that blocked the previous legislation to be applicable and improving the legal framework, by extending the threshold to grant licenses up to 50 MW and generation greater than 50MW should be subject to international public tenders, without the requirement of a risk-sharing contract with the national utility company (ANDE) as stated in the previous Law, although it retains a first call right to acquire the energy generated in case it is not exported or it is needed in the internal market.

Among other changes, the Ministry of Public Works and Communications replaced a Council of several Ministries (MOPC, Environment, Industry and Trade, Foreign Affairs) that made the procedure very bureaucratic. It must be clarified that shall Law is only applicable for the generation of electricity from the use of natural gas and/or minor hydroelectric generation, which also includes cogenerators and self-generators. This Law does not apply to other renewable energies (solar, wind) governed by Law No. 6977/2023, on Non-Conventional Renewable Energies (NCRE).

Public Procurement

Enactment of Decree Nr. 2264/2024, which regulates Law No. 7021 of December 9, 2022, "On Public Supply and Procurement".

This decree imposes a significant advance in what has to do with administrative management in public procurement. It seeks to improve efficiency, transparency and all flexibility in everything that has to do with public procurement processes. There are updates in terms of terminology, structure, facilitating reading and limiting the search for information and providing greater clarity to the management of State procurement, reducing the deadlines that have to do with protests, reconsideration appeals and deadlines for responses from public institutions to the DNCP.

A special type of bidding that he highlighted is joint procurement, which he described as an innovation in public procurement. It consists of public institutions coming together to buy goods or services, in search of efficiency through the implementation of economies of scale and administrative standardization. The annual average of the awards is USD 3.246 million, with 9.513 procedures and 3.266 suppliers.

Uruguay: Pioneering a Green Energy Future

Uruguay has solidified its position as a global leader in renewable energy, with more than 90% of its electricity matrix powered by renewables between 2016 and 2022. Now, the country faces a new challenge: decarbonizing its transportation and industrial sectors, which still rely on fossil fuels. In this context, green hydrogen emerges as a key solution in the transition towards a fully sustainable energy matrix.

a) Why Invest in Green Hydrogen in Uruguay?

Proven Expertise and Leadership: Uruguay successfully completed its first energy transition, with 98% of its electricity demand met by renewable sources. Now, with a focus on green hydrogen, the country is advancing towards full decarbonization.

Unmatched Natural Resources: Uruguay's abundant solar and wind resources enable the competitive production of green hydrogen, with projected costs of USD 1.2–1.4 per kg by 2030.

Robust Infrastructure and Stability: With strong regulatory frameworks and political stability, Uruguay offers an ideal environment for long-term investments in clean energy projects.

b) The HIF Project in Paysandú: A Milestone for Uruguay

The announcement of the construction of a green hydrogen and eFuels plant in Paysandú, led by HIF Global, marks a US$ 4 billion investment. This plant is set to produce 256 million liters of eGasoline annually, contributing to the decarbonization of more than 150,000 vehicles per year. The investment includes US$ 2 billion for the construction of the plant and an additional US$ 2 billion for the development of wind and solar parks that will supply the renewable energy required to generate green hydrogen.

This project is a landmark in Uruguay’s second energy transition, placing the country at the forefront of green energy production worldwide. Uruguay’s first energy transition, completed over the past decade, enabled 98% of its annual electricity demand to be met by renewable sources such as wind, biomass, solar, and hydropower.

With sustained economic growth, social and political stability, forward-looking legislation, and privileged natural resources, Uruguay has become a global leader in renewable energy. Now, with green hydrogen and the promotion of electric mobility, the country aims to complete its transformation into a fully sustainable energy economy.

This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

• Competition Law and State Aid
• Sanctions
• Trade
• Energy and Green Deal
• Banking & Finance
• EU Funds
• Life Sciences
• Transport and Electric Vehicles
• Data, IP and Privacy
• Consultions and Calls

EUROPEAN COMMISSION (EC)

The European Commission publishes a guidance document to facilitate common approach to data interoperability repository sector (05.07.2024) – With EU rules foreseeing a new repository on electricity metering data interoperability next year, the Commission has published a Guidance document to enable EU countries to follow a consistent and comparable approach for reporting their respective national practices, which will be stored there. This approach aims to streamline the process and ensure uniformity. As part of the Commission’s Digitalisation of Energy Action Plan, the repository will make it easier for electricity suppliers and innovative energy service companies to operate across the internal electricity market, and thereby promote competition in the retail market, while also avoiding excessive administrative costs. It will also foster innovation in energy services, particularly in energy efficiency and renewable energy, and is part of the Commission's commitment to a more consumer-centric, decarbonised, decentralised, and digitalised energy landscape.

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CEF Energy: four preparatory studies selected for funding under cross-border renewables (04.07.2024) – Following the publication of the 2023 CEF Energy call for preparatory studies for cross-border renewable energy (CB RES) projects, four projects have been selected requesting a total of 1,02 million euro of EU funding, which represents an oversubscription of the call. The awarded projects involve five EU countries (Portugal, Belgium, Denmark, Germany and Poland), and cover different sectors such as offshore wind, green hydrogen and solar PV. The beneficiaries will carry out the studies needed to assess the feasibility of the projects and/or to prepare their implementation.

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The European Commission sets new eco-design rules for industrial fans (03.07.2024) – New harmonised EU rules to reduce the energy consumption and facilitate repair of industrial fans have been adopted by the European Commission. Updating and replacing the existing regulation from 2011, the new measures cover a wide variety of fan types, sizes and applications, used in all kinds of domains - from industrial processes to heating, cooling and ventilation equipment in tertiary or larger residential buildings. The requirements will contribute to reduced energy costs for European businesses and give manufacturers of efficient, durable and reparable products a competitive advantage. With the changes introduced, the overall EU electricity consumption of industrial fans is expected to be roughly 31 TWh a year lower, by 2030, than a situation without any requirements. This saving is the equivalent to the annual electricity use of some 10 million electric vehicles. The new changes, relative to the 2011 rules, will generate annual savings of 8 TWh by 2030, increasing to 14 TWh per year by 2040. In addition, it is estimated that in 2030 consumers and businesses will save around 4 billion euro each year in lower energy bills and reduced replacement costs (due to longer lifetimes of fans meeting the new requirements).

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Declining market shares of biggest EU energy companies (02.07.2024) – In 2022, the largest electricity and gas producers experienced a decrease in market share in many EU countries, highlighting the increasing competition in the energy market compared with 2021.Overall, the market share of the largest electricity producer in the electricity market varied across EU countries. The largest share was recorded in Cyprus (87.5%), followed by Croatia (73.6%) and France (72.5%). Moreover, in 2022, the market share of the largest natural gas importer and producer decreased in 11 EU countries (out of 22 reporting EU countries). In particular, between 2021 and 2022, the largest market share decrease was reported in Lithuania (-29.8 pp), Bulgaria (-14.5 pp) and in France (-11.5 pp). Conversely, an annual increase of the largest market share was reported for Slovakia (+11.0 pp) and Croatia (+5.4 pp).

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EU imports of energy products continue to drop (01.07.2024) – In the first quarter of 2024, the EU imported 95.5 billion euro worth of energy products, amounting to a total of 183.8 million tonnes. Compared with the same quarter of 2023, imports decreased both in value (-26.4%) and in net mass (-10.4%). The value of imported natural gas in gaseous state decreased by 56.8% in the first quarter of 2024, compared with the same quarter of 2023, while the volume dropped by 11.7%. A similar trend was observed for liquified gas, with imports showing a sharp decrease in value (-54.1%) and a more modest decrease in volume (-11.4%). The significant decrease in value reflected the declining prices of natural gas after the price surge in 2022, while the decrease in volume should be seen in the context of the EU reduction plan, where EU countries committed to reducing their gas consumption by at least 15%. Both the value and volume of imported petroleum oils remained stable compared with the first quarter of 2023 (0.4% increase in value and 0.9% decrease in volume).

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The European Commission provides guidance on collaborative investment frameworks for offshore energy projects (28.06.2024) – A guidance document outlining ways in which investment frameworks for cross-border offshore grid and renewable projects can be organised most efficiently has been published by the European Commission . It will support EU countries, national regulatory authorities and system operators in their discussions on cost-sharing agreements for achieving EU countries’ regional offshore renewable targets. The guidelines are foreseen under the TEN-E Regulation and also follow on from the EU Action Plan for Grids last November in which the Commission stressed the importance of collaborative investment frameworks to realise the EU’s political ambitions on offshore renewables, signalling the need for guidance to support the process.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

Recovery fund: Council greenlights Germany’s amended plan that includes a REPowerEU chapter (16.07.2024) – The Council of the EU approved the European Commission’s positive assessment of Germany’s amended recovery and resilience plan. The amended plan now includes a new REPowerEU chapter worth 2.3 billion euro. This will contribute to accelerating Germany’s transition towards clean energy by increasing the share of renewables in the German energy mix. The modified plan has a strong focus on the green transition, allocating 49.5% of the available funds to measures that support climate objectives, up from 47% in the original plan. The digital ambition of the plan remains strong with 47.5% of its funds dedicated to digital measures. The plan is now worth 30.3 billion euro in grants and covers 17 reforms and 28 investments.

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Energy Charter Treaty: Council notifies EU withdrawal (27.06.2024) – The President of the Council, as represented by the Belgian presidency and acting on behalf of the Union, gave written notification to the depositary of the Energy Charter Treaty of the withdrawal of the Union from the Energy Charter Treaty. The withdrawal will take effect one year after the depositary has received the notification. With the two decisions adopted on 30.05.2024, the Council of the European Union gave the final green light for the European Union and Euratom to leave the Energy Charter Treaty; at the same time, remaining member states will be able to support its modernisation when voted during the next Energy Charter Conference. These decisions are linked as they form the two pillars of a political compromise known as the Belgian roadmap for the Energy Charter Treaty.

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This newsletter provides a selection of opinions and analysis from our EU legal experts on interesting policy developments, recent case law and new regulatory directions of major industry practices. It is released biweekly and covers areas such as: Competition Law, Sanctions, Trade, Energy, Finance, EU funds, Data IP and Privacy, Life Sciences, Transport and Court of Justice of the European Union news.

The aim is to provide an up–to–date tool for quick and easy consultation on the most current and important topics at EU level.

• Competition Law and State Aid
• Sanctions
• Trade
• Energy and Green Deal
• Banking & Finance
• EU Funds
• Life Sciences
• Transport and Electric Vehicles
• Data, IP and Privacy
• Consultions and Calls

First Net-Zero Academy to train 100.000 workers in the EU solar photovoltaic value chain (20.06.2024) – The European Commission has launched the European Solar Academy, the first in a series of EU Academies to be set up under the Net-Zero Industry Act (NZIA) to have in place the necessary skills along the net-zero technologies value chains. The role of NZIA academies is to develop learning content and programmes together with the industry, to ensure that sufficient skills and workforce in the value chain. It is estimated that in the solar photovoltaic (PV) manufacturing sector alone, some 66,000 skilled workers will be needed by 2030 for the EU to meets its ambitious renewable energy targets while ensuring industrial competitiveness. The Solar Academy aims to train 100,000 workers in the solar photovoltaic value chain over the next three years to address the current labour and skills gap in the sector.

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Pan-European exercise to foster preparedness in case of large-scale cyber-attacks in energy sector (20.06.2024) – The European Commission took part in an exercise called 'Cyber Europe', designed to test the preparedness in case of a large-scale cyber-attack on Europe’s energy sector. The exercise tested coordination, cooperation capabilities and crisis management skills in order to assess the resilience of the sector. This year's Cyber Europe exercise focused on a scenario involving cyber threats to the EU's energy infrastructure. The pan-European exercise brought together 30 national cyber security agencies, a number of EU agencies, bodies and networks, and over 1,000 experts covering a range of areas from incident response to decision-making.

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Italy: European Investment Bank lends 200 million euro to Iren Group to boost electricity infrastructure (19.06.2024) – The European Investment Bank (EIB) and the Iren Group have signed a 200 million euro financing agreement to support the development and modernisation of electricity infrastructure in the municipalities of Parma, Turin and Vercelli. The project aims to increase the resilience of the grid, digitise services and offer more precise and personalised management of electricity consumption. The operations will be carried out in the municipalities of Parma, Turin and Vercelli. Green financing supports the objectives of REPowerEU, for which the EIB has earmarked additional financing of 45 billion euro by 2027.

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Further step towards establishing the European Network of Network Operators of Hydrogen (18.06.2024) – The intention of establishing a European Network of Network Operators of Hydrogen (ENNOH) in the course of 2025 has moved closer today, following agreement among future Hydrogen Transmission Network Operators (HTNOs) on draft rules required in order to establish this new network. Addressing today’s meeting, EU Commissioner for Energy Kadri Simson took the opportunity to underline the crucial importance that the Commission places in ENNOH in terms of developing a European hydrogen infrastructure. She recalled that this association would have the task to plan and manage the hydrogen infrastructure and to develop market rules for its efficient operation. While it will now be up to the Commission and the Agency for the Cooperation of Energy Regulators (ACER) to evaluate these drafts – which cover the Articles of Association, Rules of Procedures, and List of Members – the fact that the future HTNOs have been able to reach agreement on these elements bodes well for the remaining steps in the process and for future cooperation once ENNOH has been established.

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The European Commission seeks feedback on State aid to the agricultural sector (17.06.2024) – The Agricultural de minimis Regulation exempts small amounts from State aid control since they are deemed to have no impact on competition and trade in the Single Market. Following its last revision in 2019, Member States can currently grant support to the agricultural sector of up to 20.000 euro per beneficiary over a period of three fiscal years without prior notification for Commission approval. If a Member State has a central register at national level to register de minimis aid, a higher ceiling applies, of 25.000 euro over a period of three fiscal years. Besides these ceilings per beneficiary, each EU Member State has a maximum national amount for such support (a so-called ‘national cap'), in order to avoid any potential distortion of competition. The Agricultural de minimis Regulation is set to expire on 31^st December 2027. A review of the Regulation was planned ahead of this expiry.

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COUNCIL OF THE EUROPEAN UNION (COUNCIL)

The Council releases statement on Energy for Growth in Africa (14.06.2024) – The Council at the G7 meeting that took place between the 13^th and the 15^th of June, the Council undersigned the leaders’ statement on Africa’s significant but largely untapped clean energy potential. To meet the internationally agreed clean energy objectives and the global efforts decided upon at the 5th session of the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement (CMA5), the leaders established the launch of the G7’s 'Energy for Growth in Africa' initiative. The initiative will help develop bankable clean energy projects, attract private capital through the catalytic use of public finance and technical assistance, encourage the flow of concessional finance, and overcome barriers to investments in clean energy across Africa.

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The Council publishes proposal for a Regulation on circularity requirements for vehicle design (12.06.2024) – On 13^th July 2023, the European Commission published a Proposal for a Regulation on circularity requirements for vehicle design and on management of end-of-life vehicles, amending Regulations (EU) 2018/858 and 2019/1020 and repealing Directives 2000/53/EC and 2005/64/EC (the ‘Proposal’). The review of the legislation on end-of-life vehicles (ELVs) stems from the broader context of the European Green Deal, with the aim of promoting more circular business models by linking design issues to end-of-life treatment. This appears necessary with respect to the significant environmental footprint of vehicle production, which is primarily due to the greenhouse gas emissions of the energy required to extract and process primary materials (coal and iron ore for steel, bauxite for aluminium and copper and oil for plastics). In addition, the increasing use of sophisticated and composite materials poses particular challenges for dismantling, reusing and recycling end-of-life vehicles, which undermine the overall treatment quality of the end-of-life vehicles.

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