{"id":98671,"date":"2022-03-09T08:32:02","date_gmt":"2022-03-09T07:32:02","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=98671"},"modified":"2022-03-09T10:50:08","modified_gmt":"2022-03-09T09:50:08","slug":"repowereu-joint-european-action-for-more-affordable-secure-and-sustainable-energy","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/repowereu-joint-european-action-for-more-affordable-secure-and-sustainable-energy\/","title":{"rendered":"REPowerEU: Joint European action for more affordable, secure and sustainable energy"},"content":{"rendered":"

The European Commission has today proposed an outline of a\u00a0plan to<\/strong>\u00a0make<\/strong>\u00a0Europe independent from Russian fossil fuels well before 2030<\/strong>,\u00a0<\/strong>starting with gas, in light of Russia’s invasion of Ukraine.<\/p>\n

This plan also outlines a series of\u00a0measures to respond to rising energy prices<\/strong>\u00a0in Europe and to\u00a0replenish gas stocks for next winter<\/strong>. Europe has been facing increased energy prices for several months, but now uncertainty on supply is exacerbating the problem. REPowerEU will seek to diversify gas supplies, speed up the roll-out of renewable gases and replace gas in heating and power generation. This can\u00a0reduce EU demand for Russian gas by two thirds before the end of the year<\/strong>.<\/p>\n

Commission President Ursula\u00a0von der Leyen<\/strong>\u00a0said:\u00a0\u201cWe must become independent from Russian oil, coal and gas. We simply cannot rely on a supplier who explicitly threatens us. We need to act now to mitigate the impact of rising energy prices, diversify our gas supply for next winter and accelerate the clean energy transition. The quicker we switch to renewables and hydrogen, combined with more energy efficiency, the quicker we will be truly independent and master our energy system. I will be discussing the Commission’s ideas with European leaders at Versailles later this week, and then working to swiftly implement them with my team.\u201d<\/em><\/p>\n

Executive Vice-President for the European Green Deal, Frans\u00a0Timmermans<\/strong>\u00a0said:\u00a0\u201c<\/em>It is time we tackle our vulnerabilities and rapidly become more independent in our energy choices. Let’s dash into renewable energy at lightning speed. Renewables are a cheap, clean, and potentially endless source of energy and instead of funding the fossil fuel industry elsewhere, they create jobs here. Putin’s war in Ukraine demonstrates the urgency of accelerating our clean energy transition.<\/em>\u201d<\/em>\u00a0<\/em><\/p>\n

Commissioner for Energy, Kadri\u00a0Simson<\/strong>, said:\u00a0\u201c<\/em>Russia’s invasion of Ukraine has aggravated the security of supply situation and driven energy prices to unprecedented levels. For the remaining weeks of this winter, Europe has sufficient amounts of gas, but we need to replenish our reserves urgently for next year. The Commission will therefore propose that by 1 October, gas storage in the EU has to be filled up to at least 90%. We have also outlined price regulation, state aid and tax measures to protect European households and businesses against the impact of the exceptionally high prices.\u201d<\/em>\u00a0<\/strong><\/p>\n

Emergency measures on energy prices and gas storage<\/strong><\/h4>\n

The Commission’s \u2018Energy Prices Toolbox’ from last October has helped Member States to\u00a0mitigate the impact of high prices on vulnerable consumers<\/strong>\u00a0and it remains an important framework for national measures. Today the Commission is presenting Member States with\u00a0additional guidance<\/strong>, confirming the possibility to regulate prices in exceptional circumstances, and setting out how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers.\u00a0EU State Aid rules<\/strong>\u00a0also offer Member States options to provide short-term\u00a0support to companies affected by high energy prices<\/strong>, and help reduce their exposure to energy price volatility in the medium to long term. Following a consultation on targeted amendments to the Emission Trading System State aid Guidelines, the Commission will also be consulting with Member States on\u00a0<\/strong>the needs for and scope of\u00a0a new State aid Temporary Crisis Framework<\/strong>\u00a0to grant aid to companies affected by the crisis, in particular those facing high energy costs.<\/p>\n

The Commission intends to present by April a legislative proposal requiring underground\u00a0gas storage across the EU to be filled up to at least 90%<\/strong>\u00a0of its capacity by 1 October each year. The proposal would entail the monitoring and enforcement of filling levels and build in solidarity arrangements between Member States. The Commission continues\u00a0<\/strong>its\u00a0investigation into the gas market<\/strong>\u00a0in response to concerns about potential distortions of competition by operators,\u00a0notably Gazprom<\/strong>.<\/p>\n

To address the skyrocketing energy prices, the Commission will look into all possible options for emergency measures to limit the contagion effect of gas prices in electricity prices, such as temporary price limits. It will also\u00a0assess options to optimise the electricity market design\u00a0<\/strong>taking into account the final report of the EU Agency for the Cooperation of Energy Regulators (ACER) and other contributions on benefits and drawbacks of alternative pricing mechanisms to keep electricity affordable, without disrupting supply and further investment in the green transition.<\/p>\n

REPowerEU \u2013 eliminating our dependence on Russian gas before 2030<\/strong><\/h4>\n

Phasing out our dependence on fossil fuels from Russia can be done well before 2030. To do so, the Commission proposes to develop a REPowerEU plan that will increase the resilience of the EU-wide energy system based on two pillars:\u00a0Diversifying gas supplies, via higher Liquefied Natural Gas (LNG)\u00a0<\/strong>and pipeline<\/strong>\u00a0imports<\/strong>\u00a0from non-Russian suppliers, and larger volumes\u00a0of biomethane and renewable hydrogen production and imports<\/strong>; and,\u00a0reducing faster the use of fossil fuels<\/strong>\u00a0in our homes, buildings, industry, and power system, by\u00a0boosting energy efficiency<\/strong>,\u00a0increasing renewables<\/strong>\u00a0and electrification, and\u00a0addressing infrastructure bottlenecks<\/strong>.<\/p>\n

Full implementation of the Commission’s \u2018Fit for 55′ proposals would already reduce our annual fossil gas consumption by 30%, equivalent to 100 billion cubic metres (bcm), by 2030. With the measures in the REPowerEU plan, we could\u00a0<\/strong>gradually\u00a0remove at least 155 bcm of fossil gas use, which is equivalent to the volume imported from Russia\u00a0<\/strong>in 2021.\u00a0Nearly two thirds of that reduction can be achieved within a year<\/strong>, ending the EU’s overdependence on a single supplier. The Commission proposes to work with Member States to identify the most suitable projects to meet these objectives, building on the extensive work done already on national Recovery and Resilience Plans.<\/p>\n

Background<\/strong><\/h4>\n

The new geopolitical and energy market reality requires us to drastically accelerate the clean energy transition and increase Europe’s energy independence from unreliable suppliers and volatile fossil fuels.<\/p>\n

Following the invasion of Ukraine, the case for a rapid clean energy transition has never been stronger and clearer. The EU imports 90% of its gas consumption, with Russia providing around 45% of those imports, in varying levels across Member States. Russia also accounts for around 25% of oil imports and 45% of coal imports.<\/p>\n

The Commission’s Energy Prices Toolbox of October 2021 has been helping citizens and businesses to face high energy prices in recent months. 25 Member States have adopted measures in line with the toolbox which are already easing energy bills for over 70 million household customers and several million micro, small and medium-sized enterprises.<\/p>\n

The Commission continues to work with neighbours and partners in the Western Balkans, and in the Energy Community, which share the EU’s fossil fuel dependencies and exposure to price hikes, while also having 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 an emergency synchronisation of the Ukrainian and Moldovan electricity grids with the continental European grid is a clear token of this commitment.<\/p>\n

For More Information<\/strong><\/p>\n

Communication on REPowerEU: Joint European action for more affordable, secure and sustainable energy<\/a><\/p>\n

Questions & Answers<\/a><\/p>\n

Factsheet – REPowerEU<\/a><\/p>\n

European Green Deal website<\/a><\/p>\n

EU Support to Ukraine website<\/a><\/p>\n

Source: European Commission – Press release<\/a><\/strong><\/p>\n

\n

REPowerEU: European Parliament Energy committee Chair reacts to new proposals<\/span><\/h4>\n
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Industry, Research and Energy Committee Chair Cristian Bu\u015foi (EPP, RO) welcomed the new package of measures tabled by the European Commission on Tuesday.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
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“The ITRE Committee backs the initiative to make Europe independent from Russian gas. We need to get rid of suppliers that finance Putin’s war in Ukraine, and we need to do it quickly. Parliament is ready to work as fast as possible on the concrete proposals to come. These measures not only make sense in the context of the Russian aggression of Ukraine, but also in the long term, for our energy transition and growth” said Cristian Bu\u015foi on Tuesday.<\/p>\n

“The measures proposed aim to help ensure that households and businesses are protected from supply and price shocks before the next heating season. Member States should now quickly follow up and adopt the necessary measures” he added.<\/p>\n

“Diversification is also key to energy security, in terms of suppliers and energy sources. We agree that indigenous generation of low-carbon sources should be increased further, as well as boosting efforts in energy efficiency in all areas of our economy. Parliament is ready to proceed quickly with the proposal allowing for joint procurements of gas and to boost strategic stocks. But we need the Commission to use the appropriate instrument to help us do so. The Amendment to the security of gas supply regulation needs to be a standalone proposal” he added.<\/p>\n

“Finally, ITRE is also committed to delivering its share of the “Fit for 55″ package, on renewables, on energy efficiency, on the energy performance of buildings and on the internal gas market package. These will define the future basics of our economy in the next 30 years. The quicker we can move, the better in the long term” M. Bu\u015foi added.<\/p>\n

Plenary debate on possible anti-competitive behaviour in the gas market<\/strong><\/h4>\n

On Tuesday around 19.15, the European Parliament will also ask the Commission about the findings of its investigation on possible anti-competitive behaviour in the gas market, as laid down\u00a0in a parliamentary question<\/a>. In the text, MEPs also ask which concrete market structural changes at EU level could allow member states to protect consumers against the volatility of the international gas market in the future. The debate can be followed\u00a0here<\/a>.<\/p>\n

MEPs highlight that the surge in gas prices was driven by the global supply and demand dynamics, exacerbated by factors linked to the pandemic and geopolitical tensions, combined with fewer than expected imports in Europe, especially from Russia. This has led to gas storage reaching lower than average levels, and higher energy prices, also resulting in increasing inflation rates across the European Union.<\/p>\n

Next Steps<\/strong><\/h4>\n

The European Parliament will give its input on the Communication. It will also debate and vote on the legislative proposals to be tabled by April by the European Commission.<\/p>\n

Background<\/strong><\/h4>\n

The\u00a0plan proposed by the European Commission on Tuesday<\/a>\u00a0outlines a series of measures to respond to rising energy prices in Europe and to replenish gas stocks for next winter. Europe has been facing increased energy prices for several months, but now uncertainty on supply is exacerbating the problem. REPowerEU will seek to diversify gas supplies, speed up the roll-out of renewable gases and replace gas in heating and power generation. This can reduce EU demand for Russian gas by two thirds before the end of the year.<\/p>\n

According to the European Commission quarterly\u00a0gas market report<\/a>, the share of Russian pipeline gas in EU gas imports was 41 % in the third quarter of 2021. Oil and gas are particularly important for Russia, funding just over a third of its\u00a0federal budget<\/a>\u00a0in 2021 (RUB9.1 billion out of RUB25.3 billion total revenue).<\/p>\n

Source: European Parliament – Press release<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The European Commission has today proposed an outline of a\u00a0plan to\u00a0make\u00a0Europe independent from Russian fossil fuels well before 2030,\u00a0starting with gas, in light of Russia’s invasion of Ukraine. This plan also outlines a series of\u00a0measures to respond to rising energy prices\u00a0in Europe and to\u00a0replenish gas stocks for next winter. 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