The proposals are a combination of an accelerated switch to sustainable energy (wind, solar, hydrogen, biogas), more energy savings, concluding contracts with more reliable gas suppliers and building up more gas reserves. The EU countries now buy approximately 155 billion cubic meters of gas from Russia each year, accounting for more than 40 percent of annual European gas imports. European government leaders will discuss the RepowerEU plan at a special EU summit in Versailles at the end of this week.
The Russian invasion of Ukraine and soaring energy prices are making Moscow’s energy dependence more and more painful. ‘The EU must be prepared for any possible scenario’, says the draft energy plan presented by Commissioner Timmermans (Green Deal) and Simson (Energy).
The Commission is boosting the earlier Green Deal plans. Accelerating the expansion of renewable energy (produced in Europe) not only makes the EU less dependent on Russia, but also reduces CO2emissions and protects against large price increases.
Biogas and hydrogen
The Commission proposes, among other things, to double the production of biogas to 35 billion cubic meters per year. The production of green hydrogen must be increased by at least 25 billion cubic meters. Extra wind energy saves 15 billion cubic meters of gas. In order to enable the construction of wind farms and solar panels, Member States should shorten their construction procedures.
Extra and faster investment in energy saving (insulation houses, heat pumps) reduces the annual demand for gas by approximately 25 billion cubic meters. Furthermore, the industry (with state support) is encouraged to switch to green production methods.
In addition to sustainable energy and energy savings, the Commission is aiming for 50 billion cubic meters of extra gas imports (including liquid ones) from other countries, such as the US, Qatar and Norway. Furthermore, the Commission wants to oblige EU countries to a strategic gas reserve for approximately 3 months. This means that on October 1, the storage capacity will be 90 percent full to get through the winter.
All in all, the greening, savings and alternative purchasing could already lead to 100 billion cubic meters less gas import from Russia this year, ie two-thirds of the total. If all plans are fully implemented, the counter in 2030 will be well above the 155 billion cubic meters that now comes from Russia.
Investing Profits
According to those involved, the investments required for RepowerEU are estimated at 100 billion euros up to 2030. This money could partly come from the large profits that energy companies make due to the high gas and electricity prices and from the higher yield from CO emission rights.2.
The Commission wants consumers and businesses to be compensated for the rising energy prices caused by the Russian invasion. Brussels points out that EU legislation allows a maximum price for electricity. Furthermore, the Commission promises to use ‘all possible flexibility’ in the state aid rules to help companies.
Concerned Commission officials foresee ‘a spirited debate’ with Member States on the RepowerEU plan. The interests are large and divergent. The corona pandemic has led to an unprecedented European economic recovery fund of 750 billion euros. The Commission hopes that the Russian aggression will bring about a breakthrough in the energy supply. She emphasizes that the EU must also get rid of imports of Russian oil (27 percent of total imports) and coal (46 percent of EU imports).