This Week in Energy — Brussels (#27, 2026)
Commission launches Electrification Action Plan, ETS review; major State aid decisions for France (offshore wind), Czechia, Ireland; EU expands energy sector sanctions on Russia; Council updates Research Fund for Coal and Steel.
July 12, 2026 to July 18, 2026
Commission launches Electrification Action Plan, ETS review; major State aid decisions for France (offshore wind), Czechia, Ireland; EU expands energy sector sanctions on Russia; Council updates Research Fund for Coal and Steel.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission presents Electrification Action Plan and revised EU ETS
On 16 July, the European Commission unveiled its Electrification Action Plan and conducted an extensive review of the EU Emissions Trading System (ETS), aiming to accelerate industrial and economy-wide decarbonisation. The Plan includes an indicative electrification target of 46% by 2040, and strategies to cut dependency on fossil fuel imports, which have cost the EU over €50 billion in additional expenditures since the Middle East conflict. The ETS review proposes a revised Linear Reduction Factor and conditions post-2030 free allocation of allowances on decarbonisation investments, integrating permanent carbon removals, and increasing funding for the Industrial Decarbonisation Bank and Innovation Fund. President Ursula von der Leyen, Executive Vice-President Teresa Ribera, Commissioners Wopke Hoekstra and Dan Jørgensen presented the proposals, emphasizing grid expansion, future-proof electricity bills, and closing the cost gap between electricity and fossil energy. Key supporting documents include COM/2026/595 (Electrification Action Plan), COM/2026/600 (amendments to Regulation (EU) 2019/943), and SWD/2026/596.
ec.europa.eu | ec.europa.eu | ec.europa.eu | ec.europa.eu
Commission approves €63 billion French State aid scheme for offshore wind
On 12 July, the Commission cleared a €63 billion French State aid scheme for the construction and operation of eleven offshore wind farms, covering up to 11.1 GW of capacity under the Clean Industrial Deal State Aid Framework (CISAF, adopted 25 June 2025). The aid, provided via two-way contracts for difference awarded through competitive bidding, is expected to support 47.8 TWh of annual renewable electricity output. This measure replaces previous schemes for three projects approved in August 2025. The arrangement aligns with Article 107(3)(c) TFEU and CISAF sections 3 and 4.1.2.
Approval of Czech market-wide capacity mechanism under CISAF
On 15 July, the Commission approved Czechia's ten-year market-wide capacity mechanism under the Clean Industrial Deal State Aid Framework (CISAF). This instrument, running from July 2026 with contracts up to 15 years, aims to secure long-term electricity supply through capacity payments awarded by competitive tender to generation, storage, and demand response participants. The budget is estimated at €3.1–6.2 billion, financed through consumer charges, and capacity agreements for the 2030–31 delivery window will be allocated by auction. The scheme was assessed as compatible with Article 107(3)(c) TFEU.
Commission approves €300 million Irish State aid for electricity price relief
On 15 July, the Commission authorised a €300 million Irish State aid scheme to provide temporary electricity price relief to energy-intensive companies. Approved under the CISAF, aid is conditioned on beneficiaries reinvesting at least 50% into decarbonisation. The measure operates through direct grants for up to three years, applicable to sectors with high electro-intensity and risk of relocation outside the EU. The scheme is in force from 4 July 2025 to 31 December 2029 and complies with Article 107(3)(c) TFEU.
EU Legislation (Official Journal)
Commission Implementing Regulation (EU) 2026/1778: Digital product passport registry implementation
On 16 July, Commission Implementing Regulation (EU) 2026/1778 was adopted, detailing the technical and operational framework for the EU digital product passport registry established under Regulation (EU) 2024/1781. The text covers verification requirements, data management, access rights, and interconnection with other systems—including provisions on energy-related products, batteries (Regulation (EU) 2023/1542), and construction products. The regulation applies directly as of its entry into force.
Council Decisions renew Research Fund for Coal and Steel implementation and research programme
On 29 June, two Council Decisions—(EU) 2026/1545 and (EU) 2026/1561—were adopted to update financial and technical guidelines for the Research Fund for Coal and Steel (RFCS). Decision (EU) 2026/1545 determines annual funding for coal and steel research through 2034 (up to €120 million/year for 2027–2033, with a final call in 2034), updates the use of assets, and strengthens focus on the green transition. Decision (EU) 2026/1561 sets out the multiannual research programme, technical priorities, and eligibility rules, supporting large-scale collaborative projects and focusing on industrial decarbonisation.
eur-lex.europa.eu | eur-lex.europa.eu
Council Regulation (EU) 2026/1805 on Russia sanctions prolongs oil price cap timeline
On 16 July, Council Regulation (EU) 2026/1805 amending Regulation (EU) No 833/2014 was published. The act postpones the timeline for amending the crude oil price cap mechanism, maintaining the current cap until 15 August 2026, with calculations based on market prices for the period 15 January–17 June 2026 and entry into force of any new cap from 15 August.
EU Council
Upcoming Informal meeting of Environment Ministers
An informal meeting of environment ministers in the Environment Council configuration is scheduled for 23 July 2026.
EP Committee Work
ENVI Committee: Chair Maran comments on Commission ETS proposal
On 17 July, ENVI Chair Pierfrancesco Maran (S&D, IT) responded to the Commission's ETS review proposal, terming the ETS a central pillar of climate and industrial policy. Maran noted that the Committee is ready to begin its legislative work on the review, referencing insights from the June ENVI hearing on emissions trading and underlining the need for transparency in the use of ETS revenues.
REGI Committee Hearing: Continuity of Just Transition Fund for regions in transition
On 16 July, the REGI Committee held a public hearing on the continuity of the Just Transition Fund for regions in transition. Speakers included regional stakeholders and Commission officials, who discussed lessons learned and approaches to ensure support continues post-2027 so no region is left behind. The event addressed the practical implications of industrial and energy transition for affected territories.
ITRE Committee holds ordinary meeting on industry and energy
The ITRE Committee on Industry, Research and Energy met on 13 July in Brussels for its regular session. The agenda covered ongoing policy developments in the fields of energy, research, and industrial competitiveness.
What We're Reading This Week
- Solar 'hats' aid Bavarian hop growers' fight for survival: Innovative solar panel installations are helping Bavarian hop farmers combat climate and economic pressures while generating renewable energy.
- Storage: Data storage technologies are rapidly evolving to meet growing demands for capacity, speed, and energy efficiency across industries.
- How smart meters can save you money and boost renewables: Smart meters help households cut energy costs and support the integration of more renewable power into the grid.
- EU still in talks on new Russia sanctions, as two sanctioned ‘shadow fleet’ tankers sail through European waters: As EU debates new Russia sanctions, two tankers linked to sanctioned "shadow fleet" transit European waters undeterred.
- How solar has saved Europe €20 billion since the war on Iran began: Europe’s rapid solar adoption has cut energy costs by €20 billion amid instability and price spikes linked to the Iran conflict.
