REPowerEU: Commission’s plan for decoupling from Russian fossil fuels

The European Commission today proposed a plan to rid Europe of Russian fossil fuels long before 2030, starting with natural gas, in light of Russia’s invasion of Ukraine.

The plan also outlines a series of measures to tackle rising energy prices in Europe and to replenish gas reserves for next winter.

According to the Commission in a statement, for several months now, energy prices in Europe have risen, but now the problem is exacerbated by uncertainty over supply. The REPowerEU project will seek to diversify gas supply, accelerate the use of renewable gases and replace natural gas in heating and electricity generation. This could reduce EU demand for Russian gas by two-thirds before the end of the year.

“We have to get rid of Russia’s oil, coal and gas. We simply cannot rely on a supplier who explicitly threatens us,” she said. President of the Commission, Ursula von der Leyen He added: “We need to take action now to mitigate the effects of rising energy prices, diversify our gas supply for next winter and speed up the transition to clean energy. The faster we focus on renewables and hydrogen, combined with increased energy efficiency, the faster we will be truly independent and in control of our energy system.I will discuss the Commission’s ideas with European leaders in Versailles later this week and then work with with my team for their speedy implementation. ”

For his part Executive Vice President for the European Green Agreement, Frans Timmermans“It’s time to address our vulnerabilities and become more independent in our energy choices. We need to focus on renewable energy as soon as possible. Renewable energy is a cheap, clean and potentially inexhaustible source of energy.” “And instead of financing the fossil fuel industry elsewhere, they are creating jobs within Europe. Putin’s war in Ukraine demonstrates the urgent need to accelerate our transition to clean energy.”

Finally, the Energy Commissioner Countryside Simpson“Russia’s invasion of Ukraine has worsened security of supply and pushed energy prices to unprecedented levels. For the rest of the winter weeks, Europe has enough gas, but we urgently need to replenish our reserves,” he said. The Commission will therefore propose that gas storage facilities in the EU be at least 90% paid by 1 October, and that we have introduced protecting European households and businesses from the effects of extremely high prices. ”

Emergency measures for energy prices and gas storage

The Commission’s “energy price toolkit” last October helped Member States mitigate the effects of high prices on vulnerable consumers and remains an important framework for action at national level, the commission said.

The Commission is currently providing additional guidance to Member States, reaffirming the possibility of regulating prices in exceptional circumstances and determining how Member States can redistribute to consumers the revenue generated by high energy profits and emissions trading. EU state aid rules can enable Member States to provide short-term support to companies affected by high energy prices and help reduce their exposure to energy price volatility in the medium and long term. After consulting on targeted amendments to the Emissions Trading Scheme guidelines, the Commission will also consult with Member States on the needs and scope of a new interim crisis framework for state aid with the aim of providing aid to companies affected by the crisis, especially those facing high energy costs.

The Commission intends to submit, by April Legislative proposal requiring EU-wide underground gas storage facilities to have been paid for at least 90% of their capacity by 1 October each year. The proposal involves monitoring and adhering to filling levels and concluding solidarity arrangements between Member States. The Commission is also continuing to investigate the gas market in response to concerns about possible distortions of competition by operators, in particular Gazprom.

To address the spike in energy prices, the Commission will consider all possible options for taking emergency measures, e.g. establishing temporary price limits, in order to limit the possibility of electricity prices being affected by gas prices. It will also evaluate options for optimizing electricity market planning, taking into account the final report of the Agency for Cooperation of EU Energy Regulators (ACER) and other contributions on the benefits and disadvantages of alternative pricing mechanisms for electricity. energy to remain affordable, without disrupting supply and further investment in the green transition.

REPowerEU – De-dependence on Russian gas before 2030

“Our dependence on fossil fuels from Russia can be phased out long before 2030,” the commission said.

To achieve this, the Commission proposes to develop it REPowerEU projectwhich will increase the resilience of the energy system at EU level with base of two pillars:

–diversification of gas supplyby increasing LNG imports and pipeline imports from suppliers outside Russia, and by increasing production volumes and imports of biomethane and renewable hydrogen; and,

–the faster reduction of fossil fuel use in our homes, buildings and industryas well as in the electricity system, by enhancing energy efficiency, increasing renewable energy sources and electricity, and tackling infrastructure bottlenecks.

Reduction of annual consumption by 30%

The full implementation of the Commission’s proposals for “Fit for 55%” will reduce, by 2030, annual fossil gas consumption by 30%, ie 100 billion cubic meters (bcm), he notes. the Commission.

With the measures of the REPowerEU project, we could gradually reduce the use of fossil gas by at least 155 bcm. This equates to the volume imported by Russia in 2021. Almost two-thirds of this reduction can be achieved within a year, thus ending the EU’s excessive reliance on a single supplier. The Commission proposes to work with the Member States to identify the most appropriate projects to achieve these objectives, on the basis of the extensive work already carried out under the national recovery and resilience plans.

Record

The new geopolitical and energy market reality necessitates a drastic acceleration of the transition to clean energy and an increase in Europe’s energy independence from unreliable suppliers and volatile fossil fuels.

Following the invasion of Ukraine, the need for a rapid transition to clean energy is more urgent and clear than ever. The EU imports 90% of the gas it consumes and about 45% of these imports, at various levels in the Member States, come from Russia. About 25% of oil imports and 45% of coal imports also come from Russia.

The Commission’s October 2021 Energy Price Toolkit is helping citizens and businesses cope with rising energy prices in recent months. 25 Member States have adopted measures under the toolbox, which have already resulted in the easing of energy bills for more than 70 million household customers and several million small and medium-sized enterprises.

The Commission continues to work with its neighbors and partners in the Western Balkans and the Energy Community, who share the same fisheries dependence on the EU and exposure to price increases, and are also committed to long-term climate goals. As far as Ukraine, Moldova and Georgia are concerned, the EU stands ready to provide support to ensure reliable and sustainable energy. The ongoing effort to urgently synchronize the electricity grids of Ukraine and Moldova with the grid of mainland Europe is a clear indication of this commitment.