The European Energy Law Report XV presents a selection of the most important developments in the field of international, European Union (EU) and national energy and climate law as discussed at the 32nd and 33rd European Energy Law Seminars, which took place in The Hague (the Netherlands) in May 2022 and November 2023 respectively.

Although a wide range of topics were discussed at the seminars, four general themes emerged from the presentations. They range from internal market and climate change developments (Part I), the governance of energy suppliers and the supply chain (Part II), the relationship between the EU and third countries (Part III) and, finally, challenges affecting the energy system and system security (Part IV). These issues are discussed in fourteen chapters divided over four parts of this volume. Noticeably, the impact of the war in Ukraine is a recurring matter in several chapters.

INTERNAL ENERGY MARKET AND CLIMATE CHANGE: JUDICIAL AND LEGISLATIVE DEVELOPMENTS

Part I offers a review of some landmark legislative and judicial developments with regard to the internal energy market and climate change. Apart from a review of EU case law in the energy sector, this part also offers a review of the effects of climate change litigation on energy companies and a review of the EU ‘Fit for 55’ legislative package.

INTRODUCTION

The 1992 UN Framework Convention on Climate Change (UNFCCC) recognised the need to reduce greenhouse gas (GHG) emissions. More detailed goals and legal measures to reach these goals were developed by the Conference of the Parties (COP) of the UNFCCC and have been included in additional agreements like the Kyoto Protocol and the Paris Agreement. Also the 28th COP, organised in Dubai in December 2023, stressed the need to reduce GHG emissions and limit the use of fossil fuels. Since World War II, developed countries have relied on the use of fossil fuels in (nearly) all economic sectors, including electricity generation. Globally, electricity generation is responsible for over a quarter of GHG emissions5 and thus attempts are made to decarbonise the power system. A key instrument is to use renewable energy sources as a primary source in power generation instead of fossil fuels. Many countries need to rely on solar and wind energy to replace fossil-based power generation. However, solar and wind are intermittent in nature. This variability poses challenges for the availability of electricity as well as the balance of the electricity network which operates within limited voltage and frequency values.

The EU and its Member States are party to the UNCCFC and have issued a wide range of measures to combat CO2 emissions, ranging from permitting CO2 emissions and trading CO2 emission rights via the EU Emissions Trading System to obliging Member States to consume specific levels of renewable energy sources.

INTRODUCTION

The European Union has established very ambitious climate goals. The ultimate aim is to be carbon neutral and energy independent in 2050. In order to achieve this goal, all Member States have been required to submit to the European Commission their national energy and climate plans (NECP) and once approved, Member States need to meet the goals they have set themselves. When drafting these NECPs, Member States will make use of the resources and instruments that are available to them. Whereas hydropower will be an obvious choice in mountainous areas, this is obviously not the case in most countries bordering the North Sea. These countries will make use of other renewable sources like solar and wind. As wind speeds are higher in the North Sea and public opposition offshore is mostly absent, North Sea states are focussing on developing offshore wind and other renewable energy sources. However, production and transport of renewable energy sources at sea is a relevant new development. Whereas a legal framework governing oil and gas exploration and production onshore as well as offshore has been in place since the 1970s, such framework is relatively new with regard to production of renewable electricity offshore. Moreover, each coastal state has been drafting such framework individually in the absence of a harmonising EU law. Consequently, each coastal state has drafted its own permitting regime for the development of offshore wind energy and park-to-shore cables, which means that electricity has been transported to shore via ‘national’ electricity cables with either an offshore or onshore connection to the electricity transmission system.

The editors are very pleased to present the European Energy Law Report XV. The European Energy Law Report is an initiative taken by the organisers of the European Energy Law Seminar (EELS) which has taken place on a regular basis in the Netherlands since 1989. The aim of this seminar is to present an overview of the most important legal developments in the field of international, EU and national energy and climate law. Whereas the first seminars concentrated on the developments at (then) European Community level, which were the results of the establishment of an Internal Energy Market, the focus has gradually expanded to developments affecting the energy sector such as climate change and security of supply. Likewise the focus extended to developments at the national level following the implementation of the EU directives on the internal energy market, the promotion of renewable energy sources, the mitigation of climate change and the reinforcement of security of supply. This approach can also be found in the present volume.

Similar to the previous European Energy Law Reports, this book includes chapters based on papers presented at the preceding EELS, which normally takes place on an annual basis. Due to the Covid-19 pandemic and the necessary adjustments to the annual organisation of EELS, this book gathers – in four thematic parts – the main central topics discussed at the EELS of 2022 and 2023. First, it presents in Part I some legislative and judicial developments regarding the Internal Energy Market and climate change mitigation.

The editors are very pleased to present the European Energy Law Report XIV. The European Energy Law Report is an initiative taken by the organizers of the European Energy Law Seminar which has taken place on a regular basis in the Netherlands since 1989. The aim of this seminar is to present an overview of the most important legal developments in the field of international, European Union (EU) and national energy and climate law. Whereas the first seminars concentrated on the developments at the European Community level, which were the results of the establishment of an Internal Energy Market, the focus has now gradually switched to the developments at the national level following the implementation of the EU directives on the internal electricity and gas markets, promoting renewable energy sources, mitigating climate change and securing energy supply. This approach can also be found in the present volume.

Similar to the previous European Energy Law Reports, this book includes chapters based on papers presented at the preceding European Energy Law Seminar (EELS), which is held on an annual basis. In this case, the book covers the main contents of the European Energy Law Seminars of 2020. Although a wide range of topics and developments were discussed at the seminar, we recognise that the common thread is energy transition and cross-border energy activities and their impacts. These issues are discussed in the five parts of this volume. As a preliminary matter, the book starts by presenting three developments that will have an impact on the EU and EU energy law (Part I). These are Brexit and its effects on the EU energy market, followed by a chapter on possible changes of the Energy Charter Treaty and their impact on energy transition, and a chapter reviewing the progression towards the EU’s 20-20-20 goals. The next part (Part II) concentrates on EU case law and in particular on State aid cases in relation to renewable energy sources (and in particular offshore wind) and energy transition measures. Part III reviews some key legal and market developments as well as new infrastructure projects aiming at ensuring cross-border energy flow in Europe. The next two parts discuss two new developments relevant for the energy transition.