The Future of Energy Newsletter - Summer 2024

Brought to you by the international Energy & Utilities Sector Group at Bird & Bird

Updates from our International Network

Poland Proposes Legal Framework for Hydrogen Market

As part of Poland's efforts to align with the European Union's strategic goals and drive its energy transition, the government has revealed details of a new legislative framework to support the hydrogen market. This initiative, embedded within the National Recovery Plan aims to establish the legal and regulatory structures necessary for the development of hydrogen infrastructure and market dynamics.

For more information please contact Tomasz Chabrzyk.

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German Federal Ministry for Economic Affairs and Climate Action publishes options paper on the electricity market design of the future - the role of energy storage systems

On 2 August 2024, the German Federal Ministry for Economic Affairs and Climate Action (“BMWK”) published the options paper "Electricity market design of the future - options for a secure, affordable and sustainable electricity system" (“options paper”). It has been developed since March 2023 by the Climate-Neutral Electricity System Platform (“PKNS”), which was set up by the coalition parties. The PKNS consists of various interest groups from the energy sector, consumers, industry and civil society and was supported by representatives from the scientific community. The options paper serves as the basis for a discussion within politics at European, national and federal level and with the various stakeholders. The public is invited and encouraged to participate in a written consultation on the options paper until 6 September 2024 by clicking here.

For more information please contact Hermann Rothfuchs, Tatjana Beck or Eva Filser.

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Green light to Hungarian wind energy! – An update 8 months in

We reported in January that, after a decade-long wait, regulatory barriers to the establishment and expansion of wind farms in Hungary were lifted thanks to a package of legislation that entered into force on 1 January 2024. The legislation both reduced the protection zone for wind farms from 12 km to 700 meters and repealed the mandatory tendering procedure for wind farm capacity. Our question was back than whether these changes be sufficient to reignite wind farm development in Hungary? How is Hungary faring 8 months after giving the green light to wind?

For more information please contact Daniel Aranyi.

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UK Government Lifts Ban on Onshore Wind

Labour's election manifesto pledged to decarbonise the UK's electricity grid by 2030. This has commenced with Chancellor Rachel Reeves announcing the immediate removal of the de facto ban on onshore wind projects, in place since 2015. The move is part of the new Labour government’s plan to double onshore wind energy capacity by 2030. The initiative aims to bolster the nation's energy security, reduce household energy bills, generate high-skilled jobs, and mitigate the climate crisis.

For more information please contact Michael Rudd.

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Germany: Faster, higher, further - hydrogen import strategy and faster authorisations for electrolysers

Shortly before the summer break, the German government launched two more projects aimed at accelerating the ramp-up of hydrogen utilisation in Germany.
The import strategy for hydrogen and hydrogen derivatives (in German) and the third ordinance amending the Ordinance on Installations Requiring Authorisation (in German) are intended to be important further steps on the path to a hydrogen economy. Such steps are also urgently needed in view of the faltering investments to date and the German government's forecast demand of 95 to 130 TWh of hydrogen and derivatives in 2030.

For more information please contact Matthias Lang or Tobias Büscher.

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Capture, store, utilise - Where to go with CO2?

Germany has set itself the goal of becoming greenhouse gas neutral by 2045. Further measures are necessary, despite efforts to switch energy generation to renewable energies and to make value chains climate-neutral, particularly in different industries. After previous political objections, carbon capture, utilisation and storage (CCUS) may be on the way to a comeback in Germany.

For more information please contact Matthias Lang or Tobias Büscher.

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Walloon Energy Sector Set for a Fundamental Changes

The Walloon government's recent political agreement outlines a comprehensive vision for the region's energy future. While this agreement is provisional and will be implemented through various legislative acts, it provides a clear indication of the government's intentions in the coming years.

For more information please contact Kevin Munungu.

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Management of Data Centres in Singapore – Key Legal Issues – Energy Use

Data centres are the bedrock for the global digital economy and are built to run ceaselessly 365 days a year, 7 days a week, 24 hours a day. The operation of a data centre (DC) in Singapore involves a fusion of workflows and processes spanning for instance:

• Leasing of real estate
  
• Construction and maintenance of DC infrastructure,
  
• Procurement of power to serve the DC
  
• IT systems architecture design and security
  
• Day to day regulatory compliance
  
• Storage of data and backup policies
  
• Management of services
  

In Part 1 of this series of articles, we provide an overview of the key legal issues that centre around the all-too-critical energy usage for the operation of DCs in Singapore.

For more information please contact Sandra Seah.

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Malaysia-to-Singapore Electricity Imports

The ASEAN Power Grid (APG) is a major regional infrastructure project aimed at enhancing connectivity and market integration in Southeast Asia. In November 2023, the ASEAN Power Grid Advancement Program (APG-AP) was launched by the ASEAN Centre for Energy (ACE) in collaboration with the CASE project and ETP to accelerate APG’s progress.

Singapore supports the APG’s goals, which aim to integrate renewable energy sources and provide accessible, affordable, and resilient electricity to ASEAN member states. Singapore plans to import up to 4 GW of low-carbon electricity by 2035, making up about 30% of its total electricity supply. This cross-border electricity trade will benefit exporting countries by attracting investments in renewable energy and energy-efficient technologies.

This article, co-authored by Bird & Bird, Tay & Partners and PSC Consulting, explores how Singapore and Malaysia’s power import policies and regulatory frameworks can facilitate power trading projects between the two countries.

For more information please contact Sandra Seah or Terrance Goh.

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Further Bird & Bird Insights

HR & Employment Law: Horizon Scanning & Update 2024/25 – Energy Sector

The energy sector is undergoing substantial transformation, with trends from recent years still holding relevance. These trends have a considerable impact on companies’ operations and their labour needs, necessitating various rearrangements and training to address new energy-related challenges. The evolving shortage of skilled employees will continue to affect mobility, posing legal and practical issues for companies. Additionally, due to changes in the global situation, both consumers and companies feel the impact of fluctuations in energy prices. Our latest Horizon Scanning & Update Report discusses the 12 key trends influencing the global HR and employment law agenda in 2024 and beyond. 

For more information please contact Ian Hunter.

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Upcoming Events

Innovation in EV Charging Conference, London - 16 October 2024

In January this year the Government launched a new regulatory framework for the switch to electric vehicles. The Zero Emission Vehicle Mandate provides that 80% of new cars and 70% of new vans sold in Great Britain will now be zero emission by 2030, increasing to 100% by 2035. In anticipation of the increased demand for reliable charging points and all the opportunities and challenges that that will bring, we are delighted to invite you to our Innovation in EV Charging Conference where we will focus on what stakeholders in this sector are doing to increase adoption of EV charging and how we can overcome the challenges faced by CPOs and developers of EV charging facilities. 

The conference will include:

• Discussions on how we can improve consumer confidence in EV charging
  
• Insights about different models of charge point development
  
• Broader perspectives including EV batteries, networking infrastructure and green electricity supplies
  
• Debate about how we can increase supply of charge points to meet demand
  
• Leading industry figures from local authorities, developers, CPOs, DNOs, innovators and other key stakeholders.
  
• Your chance to ask questions of our panelists and presenters
  

Please join us at our London offices on 16 October 2024 for an afternoon of interesting discussions focused on innovation in EV Charging, led by the leading lights in the industry. The conference will be followed by networking drinks and nibbles.

If you'd like to attend, please register with the button below. Once you register, you can add the event to your calendar including the joining link.

Sign up here