Europe Plans to Cut Russia From Energy Mix

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has revealed a plan to make Europe independent from Russian fossil fuels well before 2030, starting with natural gas.

Russia's invasion of Ukraine has caused turmoil in Europe's energy markets, threatening supplies and forcing oil and gas prices to record levels. The EC noted that Europe has been facing increased energy prices for several months, but now uncertainty on supply "is exacerbating the problem." The proposed REPowerEU plan 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 European Union (EU) demand for Russian gas by two-thirds before the end of the year, the EC claimed, and the region can phase out its dependence on fossil fuels from Russia "well before 2030."

Commission President Ursula von der Leyen said: "We 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."

Kadri Simson, Commissioner for Energy, added: "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. 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."

Industrial Info has been tracking the rapid rise in energy, minerals and food prices. For additional information, see March 14, 2022, article--Ukraine Invasion Drives Up Prices for Minerals, Oil and Wheat.

One of the first steps proposed by the EC is that underground gas storage across the EU must be filled up to at least 90% of its capacity by 1 October each year. Increasing the resilience of the region's energy system will be 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
• Faster reduction in the use of fossil fuels in our homes, buildings, industry, and power system, by boosting energy efficiency, increasing renewables and electrification, and addressing infrastructure bottlenecks

The EC claimed that its existing "Fit for 55" proposals would already reduce annual fossil gas consumption by 30%, equivalent to 100 billion cubic metres (Bcm), by 2030. With the measures in the REPowerEU plan, Europe could gradually remove at least 155 Bcm of fossil gas use, which is equivalent to the volume imported from Russia in 2021. It stated: "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."

Following the invasion of Ukraine, the commission claimed that 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.

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