On 18 May, the European Commission published its REPowerEU Plan, in order to reduce theEU’s dependency on Russian energy. The plan aims at: Saving energy, accelerating the rollout of renewables, reducing fossil fuel consumption in industry and transport and promote with smart investments.
The Plan includes the following key actions:
Increase energy savings for businesses and consumers
The Commission proposed increasing of the Energy Efficiency Target from 9% to 13%. Member states should introduce further tax relief measures to encourage energy savings. Moreover, a new set of contingency measures in case of severe supply disruption of Russian gas is encouraged.
Diversify Energy Supplies
The Commission asks to increase the use of the new EU Energy Platform with voluntary common purchases of gas, LNG and hydrogen. The creation of a ‘joint purchasing mechanism' to negotiate and contract gas purchases on behalf of participating Member States should facilitate gas purchases. moreover, the Commission has adopted an EU External Energy Strategy aiming to facilitate energy diversification and building long-term partnerships with suppliers.
Accelerating the rollout of renewables
2030 target increase for renewables from 40% to 45% under the Fit for 55 package is proposed. other actions include: an amendment to the Renewable Energy Directive to speed up permitting procedures, a new EU Solar Strategy, a Biomethane Action Plan and two Delegated Acts on the definition and production of renewable hydrogen.
Support the transport and industry green transition
The Commission will push for additional funding under the Innovation Fund, and further use of ETS revenues. Moreover, it will provide additional guidance on renewable energy and power purchase agreements. A critical raw materials legislative proposal will be announced later on.
It is estimated that implementing the REPowerEU will require €210 billion between 2022-2027. The Plan will be funded by new amendments to the RRF Regulation to integrate specific provisions in EU Member States' national plans with additional investments.