Issue 01 · 28 August 2026

This week’s takeaways

• Flexibility assessments need careful reading. Poland and Slovakia’s flexibility assessments show why a renewable-generation shortfall and a shortage of flexibility are different investment questions.
• Connections and reserve markets are being reshaped. Denmark is consulting on queue priorities, Croatia proposes flexible connections, and the Nordics will cap static FCR-D up provision from 30 September.
• Water joins the data-centre permitting debate. Questions in the Dutch parliament put cooling choices and drinking-water use under scrutiny. That is this week’s market deep dive.

How to read this

↑ Tailwind   ↓ Headwind   • Neutral

Tailwind helps the businesses affected. Headwind adds cost, delay or risk. Neutral means no clear overall benefit or drawback, though the change may still matter.

Potential means the effect depends on a proposal being adopted or another condition being met. Consultations are proposals open for feedback; closing dates appear beside each item.

Our five themes
Market Design · Taxes, Subsidies and Public Programmes · Siting, Permitting and Land Use · Grid · Environmental Markets

The regulatory picture

Updates in this edition, by market and likely effect. Bar length shows how many updates we cover, not how big their impact is. Select a market to jump to its section.

↑ Tailwind • Neutral ↓ Headwind

This week’s deep dive

🇳🇱 Netherlands · Siting, Permitting and Land Use

Amsterdam’s data-centre debate moves from power to water

A grid connection is only one part of getting a data centre built. The latest questions in the Dutch parliament bring another constraint into focus: the water needed to keep it cool.

In their first set of questions and second set of questions, MPs ask about reported drinking-water use at an Amsterdam data centre exceeding the expectations associated with its permit. They want to know whether alternatives to drinking-water cooling should be required, and what powers the national government has to limit consumption. These are parliamentary questions, not a new restriction.

The Dutch Data Center Association describes the local precedent: Amsterdam and Haarlemmermeer paused new data-centre construction in 2019. The policies introduced in 2020 restricted new projects to designated areas and imposed efficiency and sustainability requirements.

For energy developers and investors, the connection is practical. A delayed data centre can delay the electricity demand that an associated PPA, private-wire project or co-located asset expects to serve. Water availability and cooling design therefore belong alongside power availability in early site diligence.

What to watch: Permitting risk for water-intensive data centres could increase. Watch whether the government’s response points to tighter permit conditions, cooling requirements or consumption limits.

Carbon-market review opens

 Environmental Markets  Consultation · • Neutral
 Closes 21 October 

The Commission is reviewing the EU ETS and its Market Stability Reserve, which governs how allowances enter or leave the market.

The outcome could move allowance supply and carbon-price exposure. There is no settled direction yet.

Nordics cap static FCR-D up provision

26 August ·  Market Design  Announcement · ↑ Tailwind

Applies from 30 September

The Nordic TSOs will initially cap static provision at 50% of total FCR-D up demand, securing a minimum share for dynamic response. Accepted static and dynamic bids receive the same marginal price. Fingrid expects the initial market impact in Finland to be very limited.

Supportive of qualifying dynamic providers, including batteries. The benefit will differ between markets.

APG puts €240 million into its 220 kV network

18 August ·  Grid  Announcement · ↑ Tailwind

APG plans to modernise the Ennstal transmission line as renewable generation grows. The upgrade is intended to increase network capacity.

More network capacity should help regional renewable integration, although the benefit arrives with the upgrade.

Capacity-auction price caps under review

 Market Design  Consultation · • Neutral
 Closes 30 August 

CREG is consulting on three proposals affecting price caps in Capacity Remuneration Mechanism auctions. For bidders, the caps set the upper limit on the capacity revenues they can seek. Proposal 1 · Proposal 2 · Proposal 3

Material to bid economics, but the effect depends on the relevant auction category and proposed cap.

Transmission-tariff methodology proposed

 Grid  Consultation · • Neutral
 Closes 31 August 

CREG proposes an amendment to the methodology used to calculate transmission tariffs.

A cost-allocation question for network users; a uniform tariff increase or decrease cannot be inferred.

Flexible connections proposed for constrained networks

19 August ·  Grid  Bill · ↑ Potential Tailwind

Electricity Market Act amendments would allow connections combining firm capacity with variable additional access. Curtailment under the flexible arrangement would be uncompensated. The bill also covers electricity sharing and consumer protection.

A route to connect where firm capacity is scarce, in exchange for accepting curtailment risk.

Flexibility assessment adds to the regional picture

 Market Design  Report · • Neutral

Published earlier in August

The Czech assessment examines renewable integration alongside the need for storage and dispatchable capacity.

A reference for comparing storage and dispatchable-capacity assumptions across Central Europe.

Connection priority could replace queue order

 Grid  Consultation · ↑ Potential Tailwind
 Closes 22 September 

One of six draft executive orders would replace first-come-first-served allocation with four priority categories, including storage and data centres.

Qualifying projects could move ahead of older applications. Projects outside the priority categories face the opposite risk.

Market Design · Also in this issue: Nordic FCR-D procurement changes.

Reserve-provider and balance-responsibility terms change

25 August ·  Market Design  Announcement · • Neutral

Implementation in autumn

Fingrid will update reserve-supplier and balance-responsible-party contracts, including security requirements and the treatment of production below 1 MW in balance settlement.

Less direct administration for some small producers, but imbalance costs can still reappear in their offtake terms.

Market Design · Also in this issue: Nordic FCR-D procurement changes.

New facilities retain access to multi-year capacity contracts

13 August ·  Market Design  Decree · ↑ Tailwind

Catch-up

The capacity-mechanism amendment preserves eligibility for relevant facilities unable to supply the grid before the auction date.

Broadens access to multi-year capacity revenues for projects still approaching commissioning.

Funding for lower-impact data centres

 Taxes, Subsidies and Public Programmes  Funding · ↑ Tailwind
 First round closes 29 October 

The funding call supports equipment and technology that reduce data centres’ environmental impact, including cooling, heat recovery and circular-economy solutions. It is not general support for every data-centre development.

A funding opportunity for eligible equipment and technology projects.

AgNes keeps network-cost allocation in focus

 Grid  Consultation · • Neutral
 Closes 18 September 

Consultation reminder

BNetzA’s network-charging reform addresses how grid and congestion-management costs should be shared as the electricity system changes. The treatment of generation and storage is central to the debate.

Costs may shift between network users, but the proposal does not support a blanket headwind rating for generation or storage. The treatment of each asset class matters.

Renewable-auction rules and timetable approved

22 August ·  Market Design  Decision · ↑ Tailwind

MASE approved the operating rules and technology-specific timetable for competitive renewable-energy tenders. Developers now have the submission process and auction windows against which to prepare bids.

Greater visibility on the route to market and the timing of support auctions.

2028 capacity-auction design approved

24 August ·  Market Design  Decision · • Neutral

The decision sets the participation rules, capacity obligations and auction framework for the 2028 capacity market.

Gives prospective bidders a basis for qualification and delivery planning.

Reporting rules for regulated companies

 Market Design  Consultation · • Neutral
 Closes 28 August 

SPRK is consulting on amendments to energy-sector information-submission requirements. The deadline falls on this issue’s date.

An operational compliance item for regulated companies, rather than a change to project revenues.

ETS indirect-cost aid proposed for industry

25 August ·  Taxes, Subsidies and Public Programmes  Order · ↑ Potential Tailwind

The proposal provides up to 80% reimbursement for the most exposed eligible industries and up to 75% for other listed sectors, including battery manufacturing. The 2026–2029 budget is €5.64 million, with an annual cap of €1.41 million.

Lower electricity-related costs for eligible industrial users, subject to the scheme’s limits.

State-land lease relief in Pagėgiai

25 August ·  Siting, Permitting and Land Use  Procedure · ↑ Tailwind

The district council approved a procedure providing relief for renewable projects leasing state land under the national Law on Land.

Lower land costs for qualifying projects in the district.

Network-cost accounting guidance amended

26 August ·  Grid  Guidance · • Neutral

The regulator amended guidelines for the Long-Run Average Incremental Cost model used in network-cost and tariff calculations.

Changes how network costs are calculated, rather than setting a new tariff in this announcement.

Data-centre water use under scrutiny

 Siting, Permitting and Land Use  Questions · ↓ Potential Headwind

MPs are questioning drinking-water use and cooling choices at an Amsterdam data centre. Read this week’s market deep dive for the permitting implications and the earlier moratorium context.

BRP collateral methodology under consultation

 Market Design  Consultation · • Neutral
 Closes 6 October 

ACM proposes changes to the collateral calculation for balance-responsible parties providing security to TenneT.

Higher requirements would tie up working capital. The direction for each BRP depends on the revised calculation.

Dynamic reserve provision gains protection

26 August ·  Market Design  Announcement · ↑ Tailwind

Norway participates in the Nordic FCR-D up procurement changes. The cap on static provision secures a minimum share for dynamic response.

Supportive of qualifying dynamic reserve providers, including batteries.

Flexibility needs depend on renewable buildout

29 July ·  Market Design  Report · • Neutral

Catch-up

PSE’s assessment examines 2030 and 2035 against renewable-output targets of 97 TWh and 119 TWh. A shortfall caused by insufficient generation capacity needs more generation; curtailment of available output is a different problem, which storage can help address. The 2035 analysis points to around 16 GWh of storage on average across the relevant scenarios.

A useful development signal, but the scenario result is not a storage procurement target.

Central data-exchange rules proposed

 Market Design  Consultation · • Neutral
 Closes 4 September 

PSE’s proposed Transmission Grid Code amendments concern the central energy-market information system and how metering and settlement data are exchanged.

Generators and BRPs may need to adapt data processes and interfaces.

Designated areas offer a faster permitting route

25 August ·  Siting, Permitting and Land Use  Resolution · ↑ Tailwind

The government approved more than 800 geographic areas under the Renewable Energy Directive’s accelerated-development framework. Projects in scope can benefit from streamlined permitting and the applicable environmental-assessment arrangements.

A potentially shorter route to consent in designated areas. Environmental conditions still apply.

Licensing guarantees proposed, with targeted exclusions

 Market Design  Consultation · ↑ Potential Tailwind
 Closes 23 September 

ANRE’s draft sets out how financial guarantees under its licensing rules would be constituted, called and released. It includes proposed exclusions for CfD projects and co-located storage.

The exclusions could reduce capital tied up in guarantees for qualifying projects.

Flexibility assessment separates different system needs

18 August ·  Market Design  Report · • Neutral

Catch-up

SEPS finds no uncovered renewable-integration flexibility need in 2030 or 2035 that would cause the national renewable target to be missed. The assessment separately covers residual-load changes, forecast errors and local network constraints.

The result does not rule out storage demand for balancing or local grid services. Those markets need their own analysis.

Next regulatory period takes shape

 Grid  Consultation · • Neutral
 Deadline unconfirmed 

URSO is seeking views on the price-regulation framework for 2028–2032, including the approach to regulated cost recovery and returns.

Regulated returns and allowed costs for the next five-year period are at stake.

Supply and aggregation rules

 Market Design  Consultation · ↑ Potential Tailwind
 Closes 3 September 

Consultation reminder

The proposal sets out how independent aggregation would work in practice, including demand-response baselines and compensation to affected retailers at the day-ahead price.

A clearer operating framework for independent aggregators. Settlement and compensation costs will still determine whether individual services are profitable.

Non-peninsular generation and dispatch

 Market Design  Consultation · ↑ Potential Tailwind
 Closes 4 September 

Consultation reminder

The draft brings standalone and hybrid storage into dispatch in Spain’s non-peninsular systems. It also changes renewable remuneration to reduce exposure to zero or negative mainland prices.

Better access for storage and a more suitable price signal for renewables in these systems, if the proposals are adopted.

Renewable-fuels certification and electricity credits

 Environmental Markets  Consultation · ↑ Potential Tailwind
 Closes 15 September 

Consultation reminder

A proposed Order would establish a Renewable Fuels Certification System and a renewable-electricity credit mechanism.

An additional source of value for eligible renewable output if the proposed credit mechanism is implemented.

Compensation supports early grid-land agreements

25 August ·  Siting, Permitting and Land Use  Announcement · ↑ Potential Tailwind

For the Ekhyddan–Nybro line, Svenska kraftnät has offered an additional payment to eligible landowners if the anticipated compensation legislation takes effect by 1 July 2028. Eligibility depends on the agreement and land-access conditions.

Could reduce the incentive to delay land agreements on this project. It is a conditional, project-specific arrangement, not a nationwide compensation increase.

Market Design · Also in this issue: Nordic FCR-D procurement changes.

Northern Ireland sets out a licensing route for synchronous condensers

 Grid  Consultation · ↑ Potential Tailwind
 Closes 1 September 

The Utility Regulator proposes a generation-licence form for synchronous condensers. These assets provide inertia and short-circuit strength, helping the system accommodate renewable generation.

A clearer regulatory route for investment in system-strength services.

Planning relief for network ground investigations

 Siting, Permitting and Land Use  Consultation · ↑ Potential Tailwind
 Closes 4 September 

Consultation reminder

DESNZ proposes a permitted development right for certain transmission and distribution ground investigations, removing the need for a separate planning application for those activities.

Could shorten early survey and investigation work on network projects.

Northern Ireland offshore-wind compensation framework

 Siting, Permitting and Land Use  Consultation · ↓ Potential Headwind
 Closes 21 September 

DAERA proposes arrangements for environmental compensation where offshore-wind projects affect protected marine sites.

Additional compensation requirements could add development cost and consenting work.

Land Remediation Relief reform

 Taxes, Subsidies and Public Programmes  Consultation · ↑ Potential Tailwind
 Closes 21 September 

Consultation reminder

The government is considering changes to make relief more accessible and targeted towards brownfield development.

Could improve the economics of qualifying contaminated-land redevelopment.

CfD supplier-obligation changes for industrial relief

 Taxes, Subsidies and Public Programmes  Consultation · ↑ Potential Tailwind
 Closes 9 September 

Consultation reminder

The government proposes using Exchequer funding through the CfD supplier obligation to finance the British Industrial Competitiveness Scheme without shifting the relief’s cost onto households and other non-exempt consumers.

Electricity-cost relief for eligible industrial consumers. This is not an increase in support payable to CfD generators.

NESO’s annual financial model consultation

 Grid  Consultation · • Neutral
 Closes 25 September 

NESO is consulting on its regulatory financial model as required by Ofgem.

A regulatory-finance update, rather than a standalone change to every generator’s connection charges.

Household price cap rises for the fourth quarter

26 August ·  Market Design  Announcement · • Neutral

The typical household dual-fuel price-cap bill will rise by 4% for October–December 2026. Individual outcomes vary with consumption and fuel mix; this is not a 4% increase in every electricity bill.

Retail context for this audience. The household cap is not a corporate PPA price benchmark.

Closing by 31 August