In July 2020 a ministerial decision of the Ministry of Environment and Energy was published in the Official Gazette. The decision encompasses the new transitional flexibility remuneration mechanism (ie, the fee paid to selected electricity providers for the provision of the flexibility service). The mechanism is now in force and will remain so until 31 March 2021 or the date of implementation of the long-term compensation mechanism regarding the electricity system's power sufficiency, whichever occurs sooner.
A significant component of the recently approved Proposal to Amend the Electricity Business Act for the Purposes of Establishing a Resilient and Sustainable Electricity System is the nullification of feed-in tariff (FIT) certificates. The Ministry of Economy, Trade and Industry (METI) has recently published a series of notices that provide further clarity on how the nullification will take effect and METI's intention to create exemptions for certain FIT certificate holders.
Following the completion of the Regulatory Energy Agency's (RAE's) recent consultation, the RAE designated 1 November 2020 as the effective date of operation of the intraday and day-ahead markets and the balancing market (electricity markets). Further, the RAE recently issued a series of delegated decisions in order to regulate access to the electricity markets, clearing members' obligations and risk management measures in both the electricity markets and the balancing market.
In May 2020 Law 4685/2020 on the modernisation and simplification of, among other things, renewable energy source (RES) production licensing was enacted. By virtue of Law 4722/2020, the next submission round for new applications for RES producer certificates has been scheduled for December 2020. Meanwhile, the Greek Regulatory Authority has been busy issuing RES producer certificates for which applications have been pending since before the enactment of Law 4685/2020.
The Committee on Procurement Price Calculation of the Ministry of Economy, Trade and Industry recently announced a recommendation to set the maximum procurement price that bidders may propose in their development plans for offshore wind renewable energy power generation facilities at Y29 per kilowatt hour. This recommendation reduces the standard procurement price by approximately 20%. The reduction is not expected to affect the pre-tax internal rate of return for developers.
With the 2020 voting almost complete, many in the energy sector are focused on how this year's election will influence the Federal Energy Regulatory Commission (FERC) – be it the re-election of President Trump or a new Biden administration. This article provides an overview of some of the topics and issues that may be of interest to either a continued Republican-led FERC or a newly Democratic-led one.
Pursuant to Article 20(3) et seq of EU Regulation 2019/943, some EU countries – including Poland – had to prepare a specific roadmap for the implementation of the new electricity market's principles, which could be adapted to accommodate the social and economic realities of the given country. This article summarises the actions taken by Poland to adapt its national legal environment to the requirements of the Clean Energy for all Europeans package.
The revision of the Electricity Supply Act is in full swing. The purpose of this revision is to adapt the act to an electricity market that has changed considerably since its introduction. The aim is to close existing loopholes in the law and to examine new regulations based on the changing conditions in the electricity industry. One thing seems certain: the revision of the Electricity Supply Act is far from complete.
Green Net Tax Profit Accounts (CUFINs) were established in 2016 as a double tax incentive. The effect of a Green CUFIN is deferral of income tax payment at the corporate level while the shareholders anticipate the benefits of their participation in the entity. This is a valuable incentive for power generation companies and its requirements can be easily complied with through an adequate corporate structure.
Until 11 November 2020, the Department for Business, Energy and Industrial Strategy (BEIS) is consulting on the draft Ecodesign for Energy-Related Products and Energy Information Regulations 2021. The consultation asks stakeholders to comment on the ecodesign and energy labelling proposals, BEIS's assessment of the costs and benefits and the intended timetable for reviewing the draft regulations after they came into force, noted in each product-specific section.
The eagerly awaited draft Renewable Energy Expansion Act (EAG) was recently published for evaluation. To help achieve the goals of the Paris Climate Agreement 2015, the draft creates new framework conditions for the expansion of renewable energy in Austria. In view of the high level of funding, the EAG leaves no doubt that the expansion of renewable energies is one of Austria's main objectives for the next 10 years. However, a look at other countries clearly shows that funding alone will not be enough.
The glowing reviews and legal and trade press headlines would have one believe that distributed energy resource (DER) aggregation under Order 2222 will soon transform the electric industry, as DERs that are too small to participate directly in regional transmission organisation or independent system operator markets will flock to third-party DER aggregators which will sell wholesale services to organised markets. Will DER owners leap at the chance to participate in wholesale markets?
Biomethane is an emerging source of renewable energy which may be a suitable substitute for fossil fuels. The prospects for biomethane as an energy source in Italy are promising; it has the potential to become one of the main protagonists in Italy's future energy sector and would facilitate the transition to a circular economy model. This article considers recent developments under Italian law to incentivise biomethane production.
Order 2222 goes to great length explaining why distributed energy resource (DER) aggregators selling power are public utilities making Federal Energy Regulatory Commission (FERC)-jurisdictional sales under Section 205 of the Federal Power Act. This holding is no surprise. The FERC has said for decades that sales by DERs at wholesale are FERC-jurisdictional.
The new federal government has taken many actions in an effort to prioritise the Federal Commission of Electricity, Mexico's state-owned power company, over other participants in the open electricity market implemented by the 2013 to 2014 energy reform. Now, despite multiple promises from the president that Mexico's energy legislation would not be reformed, his party has announced a legislative plan to embark on a new energy reform.
One would think that the issue of jurisdiction over interconnections to distribution facilities of resources selling wholesale power could not get more complex. Order 2222 proves that it could. Specifically, qualifying facility interconnections to distribution, an area where jurisdiction was previously relatively clear, has been muddled a bit.
The Oil and Gas Authority (OGA) recently announced its offer for the award of 113 licences over 259 blocks or part-blocks to 65 companies. Licences were awarded in the OGA's 32nd offshore licensing round, which was launched on 11 July 2019 and closed for applications on 12 November 2019. The 32nd round saw the offer of 768 blocks or part-blocks, with acreage on offer in the Central North Sea, the Northern North Sea, the Southern North Sea and the West of Shetlands.
In recent weeks, information has been published concerning the draft amendment to the Act of 8 December 2017 on the Capacity Market. The amendment aims to adapt Polish regulations to reflect the new electricity market structure agreed at the EU level as part of the Clean Energy for all Europeans package. The Ministry of Climate is responsible for the draft law, the adoption of which is planned for the third quarter of 2020.
In the long-awaited Broadview order, the Federal Energy Regulatory Commission reinforced the Public Utility Regulatory Policies Act's statutory limit for small power production qualifying facilities (SPP QFs) to a power production capacity of no more than 80MW. SPP QFs cannot evade this statutory limit by restraining the ability of much larger facilities to actually 'send out' more than 80MW through the use of limited inverters.
August 2020 saw the publication of two documents which will have a significant bearing on developments in the oil and gas industry in the next decade and are closely related. The Department for Business, Energy and Industrial Strategy published a response to its consultation on the reuse of oil and gas assets for carbon capture, usage and storage projects, while the Oil and Gas Authority published its final report on UK Continental Shelf energy integration.