How could the reduction of Russian gas imports to the EU by 2/3 be achieved by the end of the year?

“Bruegel Institute researcher Simon Taliapetra in the French newspaper Le Figaro sums up how the reduction of Russian gas imports to the EU could be achieved by two thirds by the end of the year, noting that Brussels, without launching an embargo, proposes” two speed”. This is the “REPowerEU” plan, which will be discussed tomorrow, Thursday, by the EU Heads of State and Government meeting in Versailles.

The first part includes “a set of flexible and fast options in order to reduce dependence on Russian gas from this year”. Common gas markets and the creation of strategic gas reserves before next winter are proposed. The second part is longer-term and includes accelerating the transition to renewable energy sources and reducing consumption by boosting energy efficiency. Among the options, Brussels proposes doubling biogas production from agricultural waste and food waste, quadrupling hydrogen use and boosting solar power generation. The Commission proposal, as mentioned, does not forget the support of households and businesses in the face of price spikes. Governments will be able to redistribute coal market revenues and a new tax on energy companies’ profits to consumers. It is also proposed to extend the scope of state aid to provide short-term support to companies affected by high energy prices.

In Paris, he welcomed the proposals: “The proposals are an important turning point: the Commission ratifies all the measures supported by France,” said Economy Minister Bruno Lemerre. However, Paris is also considering moving further into grouped gas markets, leading to higher-priced contracts. This would mean reaching an agreement with Norwegian and Algerian producers for a very high fixed price guaranteed for one year, the publication said.

SOURCE: AMPE