What is in the European plan for energy independence from Russia
The European Commission has presented a plan to make the Union independent of Russia's gas, oil and coal by 2030. All the details
European breakthrough in energy after Russia's war on Ukraine.
Following the Russian invasion of Ukraine, the European Commission yesterday proposed a draft of REPowerEu, a plan to make Europe independent of Russian fossil fuels before 2030, starting with gas. The plan also outlines a series of measures to respond to rising energy prices in Europe and to replenish gas stocks for the coming winter.
THE REPOWEREU PLAN
Europe has been facing a rise in energy prices for several months, but now supply uncertainty is exacerbating the problem. REPowerEU will seek to diversify gas supplies, accelerate the introduction of renewable gases and replace gas in heating and power generation. These measures could reduce EU demand for Russian gas by two thirds by the end of the year.
WHAT TO DO FOR ENERGY PRICES
The European Commission's Energy Prices Toolbox last October helped member states mitigate the impact of high prices on vulnerable consumers and remains an important framework for national measures. Today the Commission presented further guidance, confirming the possibility of regulating prices in exceptional circumstances and establishing how Member States can redistribute the revenues from energy sector profits and emissions trading to consumers.
THE STANDARD ON STATE AID
EU state aid rules also offer options to provide short-term support to companies affected by high energy prices and help reduce their exposure to medium- and long-term price volatility. Following a consultation on targeted changes to the State aid guidelines of the Emissions Trading Scheme, the Commission will also consult Member States on the need for a new temporary state aid crisis framework to grant aid to companies affected by the crisis, in particular those facing high energy costs.
GAS STORAGE DOSSIER
The Commission wants to present a legislative proposal by April that requires underground gas storage across the EU to be filled to at least 90% of its capacity by 1 October each year. The proposal will involve monitoring and enforcement of fill levels and will complement solidarity agreements between Member States. The Commission is continuing its investigation into the gas market in response to concerns about potential distortions of competition by operators, in particular Gazprom.
To address the soaring energy prices, the Commission will examine all possible options for emergency measures aimed at limiting the "contagion effect" of gas prices on electricity prices – such as temporary price limits – and will also evaluate options for optimizing the design of the electricity market taking into account the final report of the Agency for the Cooperation of Energy Regulators (ACER) and other contributions on the advantages and disadvantages of alternative charging mechanisms to keep electricity accessible, without disruption of supply and further investment in the green transition.
LNG, ALTERNATIVE SUPPLIERS, ELECTRIFICATION, HYDROGEN
The phasing out of our dependence on Russia's fossil fuels can be achieved even before 2030. To this end, the Commission proposes to develop a REPowerEU plan that will increase the resilience of the European energy system based on two pillars: diversifying gas procurement, through increased imports of LNG and pipelines from non-Russian suppliers and increased production volumes and imports of biomethane and renewable hydrogen; and by more rapidly reducing the use of fossil fuels in our homes, buildings, industry and electrical systems, increasing energy efficiency, renewable energy and electrification.
THRUST TO DIVERSIFICATION
An unprecedented supply of LNG to the EU in January 2022 ensured the security of gas supply for this winter. The EU could import 50 billion cubic meters more of LNG (e.g. from Qatar, USA, Egypt, West Africa) on an annual basis. Diversification of pipe sources (eg Azerbaijan, Algeria, Norway) could lead to an additional 10 billion cubic meters of annual savings on Russian gas imports.
The Commission will assess as a matter of priority whether measures and investments in hydrogen-ready gas infrastructure and interconnections are needed to overcome bottlenecks for full utilization of LNG capacity.
Doubling the Fit for 55 target for biomethane would lead to production of 35 billion cubic meters per year by 2030. To this end, Member States' CAP strategic plans should channel funding for biomethane produced from sustainable sources of biomass, including agricultural waste and residues.
THE GOALS ON GREEN HYDROGEN
Another 15 million tons of renewable hydrogen in addition to the 5.6 tons foreseen under the Fit for 55 can replace 25-50 billion cubic meters per year of imported Russian gas by 2030. This would be an additional 10 tons. of hydrogen imported from different sources and another 5 mt of hydrogen produced in Europe, going beyond the objectives of the EU hydrogen strategy and maximizing national hydrogen production. Other fossil-free forms of hydrogen, particularly nuclear-based, also play a role in replacing natural gas.
The Commission will further develop the regulatory framework to promote a European hydrogen market and support the development of an integrated gas and hydrogen infrastructure, hydrogen storage facilities and port infrastructure. The new cross-border infrastructure should be compatible with hydrogen. The Commission will assess the State aid notification for hydrogen projects as a matter of priority and undertake to complete the assessment of the first major projects of common European interest on hydrogen within 6 weeks of the submission by participating Member States of a full notification. The common goal should be to allow the evaluation to be completed by the summer.
In addition, the Commission will support pilot projects on renewable hydrogen production and transport in the EU's neighborhood – starting with a Mediterranean partnership for green hydrogen – and will also work with partners to conclude partnerships for green hydrogen and with the industry to create a global European hydrogen plant by increasing Member States' access to affordable renewable hydrogen.
THRUST ON RENEWABLES
Fit for 55 plans to double the EU's photovoltaic and wind capacity by 2025 and triple it by 2030, saving 170 billion cubic meters of gas per year by 2030. Accelerating the deployment of solar photovoltaic systems on roofs up to 15 TWh, the EU could save an additional 2.5 billion cubic meters of gas this year.
In June, the Commission will present a communication on solar energy with the aim of helping to unlock the potential of this energy as the main renewable energy source in the EU. Based on an analysis of the progress of solar energy in the EU, the strategy will propose a European initiative on solar roofs, which will identify obstacles, propose measures to accelerate the introduction and ensure that the public can take full advantage of solar energy on the roof.
The Commission will help further develop the value chain of solar and wind energy and heat pumps, also strengthening the EU's competitiveness and addressing strategic dependencies. If necessary to attract sufficient private investment, measures will include channeling EU funding into next generation technologies, mobilizing InvestEU or Member State support.
REDEVELOPMENT OF THE LABOR FORCE
Particular attention will be paid to accelerating investments in retraining and retraining of the workforce, essential to support the transformation. The Commission, Member States and industry will need to continue to closely monitor the supply of critical and other raw materials, promote strategic partnerships to secure supplies and consider other actions, such as strategic storage , if necessary.
THE CONTRIBUTION OF HEAT PUMPS
By doubling the planned annual rate of deployment of heat pumps in the first half of this period, the EU would reach 10 million heat pumps installed over the next five years. This would save 12 billion cubic meters for every 10 million heat pumps installed by households. The rapid deployment of heat pumps on the market will require a rapid strengthening of the entire supply chain and will be accompanied by measures to promote the renovation of buildings and the modernization of the district heating system. In addition to home and building projects, energy supply based on wind, solar and other low-emission sources for power generation will also reduce our dependence on gas.
THE DECARBONIZATION OF INDUSTRY
The REPowerUE plan will accelerate the deployment of innovative hydrogen-based solutions and renewable electricity at competitive costs in industrial sectors. The Commission will continue the implementation of the Innovation Fund to support the shift to electrification and hydrogen, including through an EU-wide scheme for carbon-for-difference contracts, and to improve EU production capacities for innovative equipment with zero and low carbon dioxide emissions, such as electrolysers, next generation solar / wind power and other technologies.
The full implementation of the "Fit for 55" proposals would already reduce our annual consumption of fossil gas by 30%, equal to 100 billion cubic meters, by 2030. With the measures of the REPowerEU plan we could gradually remove at least 155 billion meters cubes of fossil gas consumption, equivalent to the volume imported from Russia in 2021. Nearly two-thirds of this reduction can be achieved within a year, ending the EU's over-reliance on a single supplier. The Commission proposes to work with Member States to identify the most suitable projects to achieve these goals, building on the extensive work already done on national plans for recovery and resilience.
THE ENERGY PRICES TOOLBOX
The new geopolitical and energy market reality requires us to drastically accelerate the transition to clean energy and increase Europe's energy independence from unreliable suppliers and volatile fossil fuels. After the invasion of Ukraine, the reasons for a rapid transition to clean energy have never been so strong and clear. The EU imports 90% of its gas consumption, with Russia providing around 45% of imports, at varying levels between member states. Russia also accounts for around 25% of oil imports and 45% of coal imports.
The October 2021 "Energy Prices Toolbox" has helped citizens and businesses cope with high energy prices in recent months, with 25 Member States taking measures in line with the toolbox they are already easing the energy bills for over 70 million domestic customers and several million micro, small and medium-sized enterprises.
COLLABORATION WITH THE BALKANS AND NOT ONLY
The Commission continues to work with neighbors and partners in the Western Balkans and the Energy Community, who share the EU's dependence on fossil fuels and exposure to price increases, while committed to the same long-term climate goals . For Ukraine, Moldova and Georgia, the EU stands ready to provide support to ensure reliable and sustainable energy. The ongoing effort to provide for emergency synchronization of the Ukrainian and Moldovan power grids with the continental European grid is a clear sign of this commitment.
WHAT TIMMERMANS SAYS
According to the vice president of the European Commission, Frank Timmermans, “with the plan presented today we can give new strength to Europe. The Fit For 55 will reduce gas consumption by 30% by 2030 and this means 100 billion cubic meters of gas that we will no longer need. By the end of the year we can replace 100 billion m3 of imports from Russia, or 2/3, to put an end to our excessive dependence and this will give us more room for maneuver. The plan is based on a double track: on the one hand we will diversify the supply by looking for new sources to replace 60 billion cubic meters and by focusing on biomethane we can replace another 18 billion cubic meters helping our farmers to become energy producers. We will also be able to increase the import of renewable hydrogen and this will allow us to develop an interconnected infrastructure that will allow us to supply sustainable hydrogen capable of replacing 60 billion cubic meters of Russian gas ”.
WHAT SIMSON SAYS
For the EU Commissioner for Energy, Kadri Simson, “we must move fast and reduce our dangerous dependence on Russian fossil fuels. The urgency to give up Russian gas is perceived more strongly in some states than in others. We need to protect fellow citizens and companies from rising prices due to Covid and now the conflict in Ukraine. In October, we took a number of measures to regulate electricity prices by sector taken by all Member States, but they are no longer sufficient. Profits from high energy prices can be considered to be taxed, and the revenues can also be used to support consumers. We think that the warehouses should be full when it comes to April, at least 90% considering them as strategic infrastructures. Another course of action is to reduce dependence on gas, which means solar roofs, more renewables, more energy savings. However, we cannot think of renewables if obtaining a license to build a wind farm takes 7 years. These plants must be considered as being of primary public interest and we will propose that Member States designate suitable areas for projects by publishing a recommendation to facilitate the issuing of permits ”.
(Article published on Energia Oltre )
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/unione-europea-indipendenza-energetica-russia/ on Wed, 09 Mar 2022 10:25:12 +0000.