Federal government investment in emerging technologies and funding changes for ARENA and CEFC

This week the Australian federal government announced a $1.9 billion funding package targeting new and emerging technologies for the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC). This provides important funding certainty to ARENA and CEFC and is expected to substantially assist in Australia’s energy transition towards a lower emissions energy … Read more

600MW Round 2 Victorian Renewable Energy Target (VRET) auction to drive Victoria’s Covid recovery

Victorian Government announce market sounding process to test industry interest and capacity for 600+ MW of new solar, wind and other renewable energy projects. Round 2 VRET auction The Minister for Energy, Environment and Climate Change, Lily D’Ambrosio, announced on 2 September 2020 the commencement of a market sounding process from interested proponents for the … Read more

Planning for the future of energy storage – a boost to the industry

The UK Government has announced legislation to change the consenting process for electricity storage projects. This is expected to provide a boost to the battery storage sector. Last November, we wrote a blog detailing the Government’s proposed changes in relation to energy storage under planning law. The Government is now proceeding with its proposals and … Read more

Germany: Federal Cartel Office launches sector inquiry into charging points for electric vehicles

The German Federal Cartel Office (“FCO”) has launched a sector inquiry in the provision and marketing of publicly accessible charging infrastructure for electric vehicles. According to the FCO’s president, Andreas Mundt, the FCO has received several complaints about prices and conditions at the charging stations. Germany has set itself the ambitious target to reduce emissions from transport by 40 to 42 percent (compared to 1990) by 2030. One aspect of this ambitious strategy is the government’s aim to have seven to ten million electric vehicles registered in Germany by that date. A bottleneck in increasing the number of electric vehicles on the road is the charging infrastructure. The German government aims to have a total of one million charging points available by 2030, which is the key milestone of its “Masterplan Charging Point Infrastructure”, adopted in November 2019. Over the next two years alone 50,000 public charging points are to be set up. Read more

The Spanish Government published the upcoming remunerative framework applicable to new renewable energy facilities in Spain

On 26 June, the Ministry for the Ecological Transition and Demographic Challenge published a draft Royal Decree which will regulate the Remunerative Framework for Renewable Energy applicable to Electricity Generation Facilities (the “draft Royal Decree”). The draft Royal Decree implements the provisions of article 14.7 bis of the Spanish Electricity Sector Law 24/2013, of 26 December (“LSE”), recently enacted by Royal Decree-law 23/2020, of 23 June, which approves measures in relation to energy and other areas to stimulate economic recovery (“RDL 23/2020”), the main contents of which were analysed here. Article 14.7 bis LSE set out, in effect, that the Spanish Government could establish a new remunerative framework applicable to renewable energy, which would be added to the current framework and would have the following defining features: a) it will be based on a long-term fixed price for energy; b) it would be awarded by tendering procedures in which electricity, installed power capacity or a combination of both would be up for auction and tenderers would make bids for the price of the remuneration for the energy produced; and c) separate auctions may be held by technology on the basis, among other criteria, of their technical characteristics, scale, dispatchability, localisation or technological maturity. Read more

Analysis of Royal Decree-Law 23/2020, of 23 June: its impact on renewable energy

On 24 June Spain’s Official State Journal (Boletín Oficial del Estado) published Royal Decree-law 23/2020, of 23 June, which approves measures in relation to energy and other areas to stimulate economic recovery (“RDL 23/2020”). RDL 23/2020 entered into force on 25 June 2020, although it has yet to receive final approval from Spanish Congress. RDL 23/2020 contains measures that affect a number of different sectors, but it primarily contains provisions for the electricity sector, with a particular focus on the regulations governing renewable energy generation facilities. Some of the measures (such as the design of the new renewable energy auctions system, the regulation of hybridisation and storage and independent aggregation) were already included in the Bill on Climate Change and Energy Transition (Proyecto de Ley de Cambio Climático y Transición Energética) (the “Climate Change Bill”) , which was sent to Spanish Congress on 19 May (which we covered in another e-bulletin - see here). The approval of those measures in RDL 23/2020 means that they can be brought into effect immediately. Read more

Investments in Energy: The Case for Oil and Gas [In a Nutshell]

Joining William Powell and Joseph Murphy of Natural Gas World, Lewis McDonald discusses what the future now looks like in terms of investments in energy, namely oil and gas. Given the burgeoning global population, rising standards of living and climate goals, there has been a serious increase in awareness and concern in global climate change around the world. The environmental, social and governance (ESG) agenda is now at the top of many companies’ priorities though currently appearing to mainly affect companies in Europe and less so in Asia. Prior to the outbreak of the Covid-19 pandemic, ESG was the major issue being discussed in board rooms. With about 12,000 entities, together controlling around $14 trillion, divesting or wanting to divest from fossil fuels primarily based on consumer demand and consumer sentiment and where the laws and regulation are heading, we have seen rather a chilling effect on investment in the oil and gas sector – and the big question is ... where does it all go from here… Read more

A SPECIAL, GLOBAL, EDITION OF THE EUROPEAN ENERGY HANDBOOK

We are delighted to present an update to our European Energy Handbook. The European Energy Handbook usually reports on regulatory, legal and market developments in the European energy sector. However, these are not usual times as the COVID-19 pandemic is creating significant health, social and economic challenges worldwide, forcing governments and businesses to critically assess the impact on their people, operations and governance. In many jurisdictions, governments have made available support schemes for businesses in an effort to mitigate the consequences of the pandemic on their businesses. In this special edition, we cover 52 jurisdictions across the globe. Read more

The CNMC approves a Circular to establish a new remuneration structure for natural gas distribution

On 3 April 2020, Spain’s Official State Journal (Boletín Oficial del Estado) published Circular 4/2020, of 31 March, of the National Markets and Competition Commission, which establishes the methodology for remunerating natural gas distribution (the “Circular”). In the Circular, the Spanish National Markets and Competition Commission (Comisión Nacional de los Mercados y la Competencia, or “CNMC”) establishes the remunerative framework applicable to the distribution of natural gas for the second regulatory period (beginning on 1 January 2021 and ending on 31 December 2026), replacing the framework applicable up to that date, as established in Annex X of Law 18/2014, of 15 October, on the approval of urgent measures for growth, competitiveness and efficiency (“Ley 18/2014”). Read more