The Future of Energy Newsletter - Winter 2025

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

In Focus

Energy Outlook 2025

We’re delighted to introduce the third edition of our Energy Outlook report, where our global Energy & Utilities team anticipate the important developments across key areas of the sector and give an invaluable oversight of what to expect in 2025. 

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Updates from our International Network

Germany: Another summit for energy markets - Key considerations of the "Solar Peak Act”

In one of its final sessions ahead of the upcoming elections the German parliament on 31. January 2025 approved the "Energy Industry Act Amendment to Address Temporary Generation Surpluses" (BT Drucksache 20/14235; commonly known as the "Solar Peak Act”).

For more information please contact Hermann Rothfuchs or Tatjana Beck.

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Netherlands: REMIT update NL: ACM’s oversight priorities for 2025 and what about ‘marking the close’

The Dutch regulator ACM recently published its oversight priorities in relation to the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT, as amended by REMIT II) together with a market warning about conduct described as ‘marking the close’. This article discusses the ACM’s announcement of a reprimand against an international company for possible market manipulation as well as ACM’s oversight indicators for 2025.

For more information please contact Peter Willis, Tialda Beetstra, or Sander Wagemakers.

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Hello there regulation! Implications operators of German self-consumption facilities must now deal with following the latest ECJ judgement

On 28 November 2024, the European Court of Justice (ECJ) issued a decision declaring that the self-consumption facilities, cf. in German Kundenanlagen, are incompatible with the Directive on the internal electricity market. As a consequence of this judgment, current regulatory privileges granted to self-consumption facilities under German law are in violation of EU legislation – which is likely to have substantial consequences for those affected. 

For more information please contact Dr. Matthias Lang or Anja Holtermann, LL.M.

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Cross Border Power Trading in APAC

There have been great strides taken in the development of regional power trade in the Asia Pacific (APAC) region in recent years. ASEAN, in particular, has made great progress in its cross-border energy transmission infrastructure and inter-government cooperation in energy transmission projects. In the race towards net zero emissions, interconnected grids provide a viable solution to promote higher penetration of renewable generation and enhance network reliability. At the same time, countries with high energy generation capacity or potential, such as Lao PDR, may enjoy economic benefits from exporting renewable energy. With a growing number of trials and Power Integration Projects (PIPs), regional power trading now presents an exciting area for growth in APAC.

For more information please contact Sandra Seah or Genessa Chew.

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Enhancing Energy Security: Finland's Legislative Response to Russian LNG Imports

Russian LNG has been imported to Europe in record amounts in recent years, despite the EU imposing sanctions on Russian gas and oil exports due to the war in Ukraine. In Finland, the state-owned company Gasum imported Russian LNG until the summer of 2024, when EU sanctions came into effect.

For more information please contact Laura Huomo or Hilma Huttunen.

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Poland Introduces Auction-Based Support System for Biomethane Production in Installations Above 1 MW

Poland will launch a new auction-based support scheme for biomethane production in installations above 1 MW. The proposal, as outlined in the draft amendment to the Act on Investment in Wind Power Plants and Some Other Acts, calls for amendments of the Renewable Energy Sources Act (OZE Act) aimed at increasing the energy security of Poland, speeding up the transition in the energy sector, and providing stable conditions for investment by large biomethane producers. Whereas small biomethane plants below 1 MW have already tasted the advantage of a feed-in premium (FIP) system, larger plants have for long lacked investment opportunities. The legislative proposal tries to reverse this loss by implementing a competitive auction process, anchoring biomethane producers with the kind of financial security it requires for long-term sustainability.

For more information please contact Tomasz Chabrzyk.

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Offshore Developments in the Netherlands: Updates on the Wind Energy Roadmap and Offshore Hydrogen Demo Project

The Dutch government remains committed to achieving 21 GW of operational offshore wind capacity by 2030. In addition, the Dutch government is committed to stimulating the development of offshore hydrogen production by subsidising two demonstration projects that should lead to a total capacity of up to 550 MW by 2033.

On 21 November 2024, the Dutch Minister of Climate Policy and Green Growth provided an update on the ‘Offshore Wind Energy Roadmap’ (Routekaart Windenergie op Zee) and the subsidy process for the ‘Offshore Hydrogen Production Demonstration Project 1’ (Demo 1). 

For more information please contact Paul Waszink, Tialda Beetstra, or Sander Wagemakers.

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ESG Focus - Introduction to the UK Energy Savings Opportunity Scheme (ESOS)

The volume and variety of ESG regulations aimed at shifting corporate behaviour, increasing transparency and monitoring compliance continues to increase worldwide. These evolving regulatory requirements create a growing risk of non-compliance but also present opportunities for operational improvements and costs savings.

For more information please contact Andrew Dean or Hadrien Espiard.

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Energy Release 2.0 - A complete analysis

On November 14, 2024, the first "Tender notice for the allocation of electricity in the availability of the GSE - pursuant to Ministerial Decree No. 268 of July 23, 2024 (so-called Energy Release 2.0)" pursuant to, respectively, Article 1(2), of Law-Decree No. 181 of December 9, 2023, converted, with amendments, by Law No. 11 of February 2, 2024, and Decree of the Ministry of Environment and Energy Security of July 23, 2024 No. 268 (so-called DM Energy Release 2.0) was published on the website of Gestore dei Servizi Energetici S.p.A. (“GSE”).

For more information please contact Pierpaolo Mastromarini.

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Reflections on the U.K. government’s pledge to turbocharge the data centre industry

The UK government has announced ambitious plans this week for the UK data centre industry. British Prime Minister Kier Starmer set out how he intends to put a stake in the ground in AI, which will require development of numerous hyperscale data centres of 100MW or more. His aim is that the UK will become a leader as opposed to a follower in the pack of the global data centre industry - by its nature an industry where economies in different regions are in direct competition with one other. From a relatively short statement by the Prime Minister containing some emotive themes, we have extracted a few key commitments, and a few key omissions too. 

For more information please contact Hannah Buckley or Patrick Jones.

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