This Week in Energy — Brussels (#17, 2026)
Commission invests €1bn in hydrogen; Five new energy market Recommendations published; Updated heavy-duty vehicle emissions credits; Portuguese electricity derogation; EU–Japan energy trade dialogue.
May 03, 2026 to May 09, 2026
Commission invests €1bn in hydrogen; Five new energy market Recommendations published; Updated heavy-duty vehicle emissions credits; Portuguese electricity derogation; EU–Japan energy trade dialogue.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
This Week's Calendar in Brussels
- Informal meeting of energy ministers: On May 12, the EU Council's Informal meeting of energy ministers configuration is scheduled to hold an informal meeting ministerial meeting in Brussels.
European Commission
Commission invests over €1 billion in European hydrogen projects via European Hydrogen Bank auction
On 6 May 2026, the European Commission announced the selection of nine hydrogen production projects across seven EEA countries, allocating approximately €1.09 billion in funding through the Innovation Fund under the European Hydrogen Bank's third auction. The projects are expected to deliver nearly 1.1 GW of electrolyser capacity and produce over 1.3 million tonnes of hydrogen over a decade, with a projected 9 million tonnes of CO2e emissions avoided. The auction’s fixed premiums per kilogram of hydrogen range from €0.44 to €3.49, to be paid for up to 10 years. Projects include Hellenic Hydrogen in Greece, Turn2X in Spain, MorGen and Hy2gen Nordic in Denmark, Wiener Wasserstoff in Austria, and others in Finland, Germany, and Norway. Spain and Germany are providing additional national support via the 'Auctions-as-a-Service' facility, contributing a further €1.7 billion. The selected projects must reach financial close within 2.5 years and begin operation within five years of grant signature. The agreements are expected to be signed in Q4 2026.
Commission approves €5 billion German State aid scheme for industrial decarbonisation
On 6 May 2026, the Commission approved a €5 billion aid scheme for Germany under EU State aid rules, aimed at supporting decarbonisation in energy-intensive industrial sectors. The scheme will use two-way carbon contracts for difference with a 15-year duration, covering sectors such as steel, cement, chemicals, and glass. Projects are selected via competitive bidding based on cost efficiency per tonne of CO2 avoided, with requirements for at least 50% emissions reductions within four years and 85% by contract end. The scheme replaces a previously approved but unimplemented version from March 2025 and aligns with Article 107(3)(c) TFEU and the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG).
Commission approves €800 million in State aid for Lithuanian development bank investments including energy
On 4 May 2026, the Commission approved capital injections totaling €813 million and tax exemptions for the Lithuanian development bank ILTE to support investments in sectors including renewable energy and district heating. The measure, notified by the Lithuanian Ministry of Finance, aims to address market failures in financing projects with high investment volumes and long payback periods. The approval was granted under Article 107(3)(c) TFEU.
EU and Japan reinforce cooperation on energy security and supply chains
During the 7th EU–Japan High-Level Economic Dialogue in Brussels on 7 May 2026, co-chaired by Stéphane Séjourné and Maroš Šefčovič for the EU and Akazawa Ryosei and Horii Iwao for Japan, both sides reaffirmed commitments to energy market stability, critical mineral supply chains, and clean energy technologies including hydrogen, batteries, and solar. Discussions covered export restrictions, economic security, the EU-Japan Competitiveness Alliance, and joint support for critical mineral projects. The dialogue addressed industrial policy coordination in energy and the expanded use of the EU Critical Raw Materials Act.
EU Legislation (Official Journal)
Regulation (EU) 2026/1046: Amending emission credits calculation for heavy-duty vehicles
Published on 7 May 2026, Regulation (EU) 2026/1046 amends Regulation (EU) 2019/1242 concerning the calculation of emission credits for heavy-duty vehicles for reporting years 2025–2029. The change allows manufacturers to generate emission credits if their CO2 emissions fall below the specific target, incentivising early deployment of zero-emission vehicles in light of charging infrastructure delays. Urban buses are excluded from the scope.
Commission Recommendation (EU) 2026/1001: Protection of vulnerable energy consumers during gas phase-out
Adopted 30 April 2026, this Recommendation provides guidance to Member States on preventing energy disconnections and protecting vulnerable consumers during the natural gas phase-out or decommissioning of gas distribution networks. It outlines structural measures, legislative safeguards, support mechanisms, and governance requirements, referencing Directives (EU) 2019/944, 2024/1711, and 2024/1788.
Commission Recommendation (EU) 2026/1007: Supporting energy communities and self-consumption
Issued 30 April 2026, Recommendation (EU) 2026/1007 encourages Member States to develop frameworks for energy communities and self-consumption, including simplified permitting, grid access, and targeted support. It covers the alignment with Directives (EU) 2018/2001, 2019/944, and 2024/1788, aiming to accelerate renewable deployment and citizen participation.
Commission Recommendation (EU) 2026/1008: Standardising energy supply contract summaries
Published on 8 May 2026, this Recommendation advises Member States to standardise the format and terminology of key contractual terms in energy supply contracts for electricity and gas, referencing Directives (EU) 2019/944 and 2024/1788. The objective is to improve consumer transparency and facilitate supplier switching.
Commission Recommendation (EU) 2026/1009: Supplier risk management in energy retail markets
Adopted 30 April 2026, Recommendation (EU) 2026/1009 provides guidance for Member States and regulators on enforcing supplier risk management and hedging obligations under Article 18a of Directive (EU) 2019/944, as amended by Directive (EU) 2024/1711. It covers prudential oversight, reporting, and proportional enforcement frameworks.
Commission Decision (EU) 2026/994: Portuguese electricity derogation for Berlenga island
On 4 May 2026, the Commission granted Portugal a derogation from certain provisions of Directive (EU) 2019/944 for the small isolated system of Berlenga island until 29 July 2040, allowing integrated generation, distribution, and storage operations under the Sustainable Berlenga renewable power project.
EU Council
Upcoming informal meeting of energy ministers (Transport, Telecommunications and Energy Council)
An informal meeting of EU energy ministers under the Transport, Telecommunications and Energy Council configuration is scheduled for 12 May 2026.
EP Committee Work
ENVI/ITRE: Joint committee discussions on accelerating energy permits and TEN-E guidelines
On 4–5 May 2026, the ENVI and ITRE committees held joint sessions covering the draft reports and opinions on the acceleration of permit-granting procedures for renewable projects (COM(2025)1007, rapporteur Niels Fuglsang, S&D) and the revision of guidelines for trans-European energy infrastructure (COM(2025)1006, rapporteur Tsvetelina Penkova, S&D). Amendments to both files are due in May. The committees also considered opinions on the Connecting Europe Facility and the Temporary Decarbonisation Fund.
ITRE: Research Fund for Coal and Steel—multiannual guidelines report adopted
On 7 May 2026, the ITRE committee adopted the report on the Council decision for the Research Programme of the Research Fund for Coal and Steel, including multiannual technical and financial guidelines, as presented by rapporteur Borys Budka (EPP). The decision repeals Decisions 2003/77/EC and 2008/376/EC, aligning research funding with EU industrial and energy transition priorities.
What We're Reading This Week
- Why Europe’s negative electricity prices won’t lower your bills: Despite falling wholesale electricity prices in Europe, consumers are unlikely to see significant reductions in their energy bills.
- Solar and wind with battery storage become more cost competitive, IRENA report shows: IRENA finds that solar and wind paired with battery storage are now rivaling or undercutting fossil fuels on cost.
- Video. Brussels mulls scrapping methane fines amid energy crisis - leak: EU officials consider dropping methane emission penalties to ease energy supply pressures during the ongoing crisis, according to leaked documents.
- Europe's electricity storage race: Who leads in battery capacity?: Germany and Spain are emerging as frontrunners in expanding battery storage capacity to support Europe's renewable energy goals.
- Sweden halts plans for power cable to Denmark over disagreement with EU funding plan: Sweden suspends cross-border energy project with Denmark after failing to agree with the EU on funding arrangements.
