This Week in Energy — Brussels (#29, 2026)
Commission approves €290m Dutch State aid for sustainable aviation fuels; €59m Slovenian battery storage scheme cleared; new guidance on State aid for social support; Malta's €60m Social Climate Plan endorsed; Regulation (EU) 2026/1740 amends CBAM rules; energy reporting templates revised (EU) 20...
July 26, 2026 to August 01, 2026
Commission approves €290m Dutch State aid for sustainable aviation fuels; €59m Slovenian battery storage scheme cleared; new guidance on State aid for social support; Malta's €60m Social Climate Plan endorsed; Regulation (EU) 2026/1740 amends CBAM rules; energy reporting templates revised (EU) 2026/1807.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 📚 What We're Reading This Week
European Commission
Commission approves €290 million Dutch State aid to support sustainable aviation fuels
On 30 July 2026, the European Commission approved two Dutch State aid schemes totalling €290 million to support sustainable aviation fuel (SAF) production, under Article 107(3)(c) TFEU, the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG), and the 2025 Clean Industrial Deal State aid Framework (CISAF). The schemes offer investment support for SAF production and grants for preparatory works such as engineering studies. Projects supported are expected to produce about 285 kilotonnes of SAF annually from 2027 to 2031. Technologies targeted include non-HEFA advanced bio-SAF and synthetic fuels (e-SAF), with compliance required under EU criteria for renewable fuels of non-biological origin and sustainability criteria for advanced biofuels. The decisions pertain to State aid cases SA.121979 and SA.123605; non-confidential versions will be published in the State aid register once confidentiality issues are resolved.
Commission approves €59 million Slovenian State aid scheme to promote battery energy storage systems
On 30 July 2026, the Commission approved Slovenia's €59 million State aid scheme for battery energy storage, aligned with the Clean Industrial Deal and CISAF adopted on 25 June 2025. The scheme supports the installation of at least 370 MWh in new storage capacity, financed by the Just Transition Fund and ETS Modernisation Fund. Aid is awarded as direct grants for the construction of standalone battery systems, calculated based on individual project costs. The scheme is deemed necessary and proportionate, with eligibility running until 31 December 2030, and must comply with Article 107(3)(c) TFEU and CISAF. The approval is registered under case SA.122160.
Belgium, Bulgaria, Denmark, and Slovenia receive more than €1.86 billion under NextGenerationEU
On 30 July 2026, the European Commission disbursed over €1.86 billion under the Recovery and Resilience Facility (RRF) of NextGenerationEU to Belgium (€567m), Bulgaria (€896m), Denmark (€359m), and Slovenia (€41m), following successful completion of milestones and targets in national recovery plans. Belgium receives its fourth RRF payment, Bulgaria its fourth with partial fulfilment, Denmark its fifth and final payment (completing disbursements), and Slovenia its sixth. Denmark becomes the first Member State to receive all RRF grants ahead of the 2026 deadline. Disbursements are performance-based, requiring full milestone and target completion by 31 August 2026.
Commission endorses Malta's €60 million Social Climate Plan to support vulnerable households and small companies in the clean transition
On 28 July 2026, the Commission endorsed Malta’s Social Climate Plan, the fourth national plan adopted under the Social Climate Fund. The plan mobilises €60.6 million until 2032, with €45.4 million from EU resources, for energy-efficiency upgrades, renewable energy systems, and expanded sustainable transport for vulnerable households and micro-enterprises. The measures target energy poverty and anticipate a reduction of greenhouse gas emissions by 3,500 tonnes CO₂ equivalent. Malta can request its first payment once implementation begins. The Fund draws on revenues from ETS2 and aims to support measures and investments for the clean transition from 2026–2032.
Commission seeks feedback on proposed amendments to regional State aid guidelines
On 27 July 2026, the Commission launched a public consultation inviting comments on proposed amendments to the Guidelines on regional State aid, which establish the legal framework for regional development in the EU. These amendments use updated socio-economic data for identifying eligible areas for regional aid from 2028–2034, and consider the challenges facing eastern EU regions bordering Russia, Belarus, and Ukraine. National and regional authorities are urged to respond by 30 September 2026. Final adoption of the guidelines is planned for late 2026, ahead of the expiry of current regional aid maps in 2027.
Commission opens in-depth investigation into arbitration award ordering Romania to pay compensation to ten energy investors
On 28 July 2026, the Commission launched an in-depth investigation into an arbitration award requiring Romania to pay €42.2 million plus interest to ten investors for changes to a renewable electricity support scheme. The Commission’s preliminary view is that the award constitutes State aid under Article 107(1) TFEU and may be incompatible with the internal market. The review considers potential breaches of EU Treaties, specifically Article 19(1) TEU, Articles 267 and 344 TFEU, and the autonomy of EU law. The process allows Romania and third parties to submit comments during the investigation. Romania withdrew from the Energy Charter Treaty (ECT) on 22 May 2026.
EU State aid rules enable social support and investments, new Commission guidance shows
On 26 July 2026, the Commission published new guidance illustrating how EU State aid rules facilitate Member State social support and investment, aligned with the Clean Industrial Deal. The guidance outlines allowable measures for services of general economic interest (public service obligations), employment of disadvantaged workers, energy efficiency in households, and SME support. It also distinguishes between permissible State aid and non-aid public support, and will be updated as regulations evolve, including pending changes to the General Block Exemption Regulation. The document aims to clarify options for designing aid measures supporting social objectives.
Commission greenlights Belgium's fifth payment request for €225 million under NextGenerationEU
On 26 July 2026, the Commission positively assessed Belgium’s fifth RRF payment request of €225 million, following completion of 7 milestones and 12 targets under the Council Implementing Decision. Flagship reforms include deploying low-emission buses, reforming vehicle circulation tax in Wallonia, and improving the energy efficiency of housing stock. Once the Economic and Financial Committee delivers its opinion, the Commission will issue a payment decision. With this payment, Belgium will have received €3.86 billion, or 73% of its total RRF allocation, with 67.6% of milestones and targets fulfilled.
EU Legislation (Official Journal)
Commission Implementing Regulation (EU) 2026/1740 of 20 July 2026 correcting Implementing Regulation (EU) 2025/2621 as regards Annexes I and IV thereto
Commission Implementing Regulation (EU) 2026/1740 of 20 July 2026 corrects Annexes I and IV of Regulation (EU) 2025/2621 pertaining to the carbon border adjustment mechanism (CBAM). The amendments address missing or incorrect production route indicators, clarify default value units, update country nomenclature, and correct transcription errors. The regulation applies retroactively from 1 January 2026 and streamlines CBAM benchmark calculations for certain Combined Nomenclature codes. These adjustments facilitate consistent application of CBAM reporting and allocation requirements across Member States.
Commission Implementing Regulation (EU) 2026/1807 of 24 July 2026 amending Implementing Regulation (EU) 2022/2299 as regards new and modified reporting obligations
Regulation (EU) 2026/1807 amends Implementing Regulation (EU) 2022/2299, modifying templates for integrated national energy and climate progress reports required under Regulation (EU) 2018/1999. The changes reflect new obligations from Directives (EU) 2018/2001, 2023/1791, 2024/1275, and 2024/1788. Reporting templates are simplified and updated for sectoral measures—including renewable energy, energy efficiency, building renovation, and fossil fuel subsidy phase-out. Transitional provisions allow flexibility for the 2024–2025 reporting cycle, with entry into force twenty days after publication.
Commission Implementing Decision (EU) 2026/1815 of 24 July 2026 on CO2 emissions values for new heavy-duty vehicles
Commission Implementing Decision (EU) 2026/1815 establishes CO2 emissions values per manufacturer and aggregate averages for new heavy-duty vehicles registered in the EU in 2024, under Regulation (EU) 2019/1242. The decision sets manufacturer-specific and Union-wide averages, as well as zero- and low-emission factors relevant for compliance with emissions reduction trajectories. These values are based on reporting required by Member States and are used for calculating emission credits.
Council Implementing Decision (EU) 2026/1902 of 28 July 2026 authorising Ireland to apply reduced rates of excise duty to commercial gas oil
Council Implementing Decision (EU) 2026/1902 authorises Ireland, under Article 19 of Directive 2003/96/EC, to apply reduced excise duty rates to commercial gas oil for road transport operators, in response to energy price shocks from geopolitical events. Effective rates of 0.25185 EUR/litre (to 31 August 2026) and 0.31689 EUR/litre (from 1 September to 30 September 2026) are permitted, below the minimum levels set by Article 7 of Directive 2003/96/EC. The temporary derogation is set to expire on 30 September 2026 unless new minimum levels are introduced earlier.
What We're Reading This Week
- Wind, solar and heat pumps can free EU from LNG dependence – study: A new study finds that expanding renewables and heat pumps could significantly reduce the EU's reliance on imported LNG.
- Heat pumps, solar and wind could cut EU gas use by a quarter and blunt next energy shock, study finds: Accelerating adoption of heat pumps, solar, and wind could significantly reduce EU gas dependence and boost energy resilience, study shows.
- Brussels found Russia’s LNG weak spot — then carved out an exception for a Greek billionaire: EU targets Russia’s LNG industry but grants an exemption benefiting a Greek shipping magnate, revealing policy inconsistencies.
- US Senate bill on Russia sanctions risks backfiring against European allies: New US Senate sanctions on Russia could unintentionally harm European allies' economies and energy security.
- Burnham’s first 10 days in No. 10: popular tax breaks, but North Sea oil gambit risks backlash: Burnham launches cost-of-living relief, but his North Sea oil strategy sparks environmental and political controversy.
