Following full-scale russia’s invasion of Ukraine, the case for EU 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 accounted for around 25% of oil imports and 45% of coal imports.
▪ In March 2022, in response to the unprecedented energy price crisis, the European Commission presented #REPowerEU #Plan to create an affordable, secure, resilient and sustainable EU energy market and phase out EU dependence on russian fossil fuels well before 2030.
REPowerEU plan is based on two pillars:
📌 Diversifying gas supplies, via higher Liquefied Natural Gas (LNG) and pipeline imports from non-russian suppliers, and larger volumes of biomethane and renewable hydrogen production and imports;
📌 Reducing faster the use of fossil fuels by households, producers, and power system, by boosting energy efficiency, increasing renewables and electrification, and addressing infrastructure bottlenecks.
▪ To alleviate future gas supply disruptions, the Plan proposes minimum gas storage fillings, setting a target of 90% by 1 October each year, designating gas storage as critical infrastructure and tackling the storage infrastructure ownership risks. As far as diversification is concerned, the EU could import 50 bcm more of LNG on a yearly basis from Qatar, the US and Egypt and West African nations, and nearly 10 bcm yearly from Azerbaijan, Algeria and Norway. LNG could replace 60 bcm of russian gas within the next 12 months.
▪ The REPowerEU plan provides for increased use of biomethane and renewable hydrogen. In addition, REPowerEU will create a #Hydrogen#Accelerator that will aim to develop integrated infrastructure, storage facilities and port capacities. The European Commission will also support pilot projects on renewable hydrogen production and transport, starting with a Mediterranean Green Hydrogen Partnership.
▪ In terms of incentivising investments in clean energy, during 2022, the Commission and the European Investment Bank Group will agree on the financing mechanisms best suited to promote the development of power purchase agreements (#PPAs) in Europe, including how to offer better access to PPAs for new off-takers such as SMEs.
▪ REPowerEU also seeks to front-load #renewables by doubling capacity by 2025 and tripling it by 2030. The Plan aims to nearly triple current installed wind and PV capacity in the EU. Thefore, it envisages faster permit regimes for wind and solar projects.
⚡ With the measures in the REPowerEU plan at least 155 bcm of fossil gas use can be gradually removed, which is equivalent to the volume imported from russia in 2021. Nearly two thirds of that reduction can be achieved within a year.
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