The EU will gradually end Russian energy imports

As the US decides to ban Russian oil imports, the EU makes medium-term plans. EU Commission President Ursula von der Leyen said: “We need to get rid of our dependence on Russia for gas, oil and coal.” But it is clear that these measures have no immediate effect nor are they feasible in the short term. A new plan for the future of energy in Europe has long been being prepared in Brussels – now because of the war in Ukraine the plan is accelerating.

“REPower EU” is the title of the program on which EU leaders will be consulted at the weekend summit. “Obviously before 2030.” The EU must become independent of fossil fuels from Russia and jointly develop safe, cost-effective and sustainable energy sources, the statement said. At the same time, solutions must be found to increase energy prices for consumers and gas reserves must be replenished for next winter.

All of this needs to be set in motion to meet the climate target for 2050. Now we need to act much faster – and this is the biggest problem: Because it is clear that immediate energy sanctions on Russia, now for now Europeans consider them as a last resort. European economies are so dependent on Russian subjects: Bulgarian Prime Minister Kirill Petkov warned that his country receives all its energy from Russia and cannot afford to cut off supplies.

Chancellor Olaf Scholz believes that even the richest EU country fails: In the meantime we can not otherwise secure the supply, so energy “consciously” is excluded from sanctions against Russia, Scholz said in a video conference with the president of the USA Joe Biden. Foreign Minister Anthony Blinken said: “There is a need for a chance for European countries to be liberated from Russian energy.”

What does the plan contain?

Commission Vice President Frans Timmermans expresses optimism: By the end of the year he will replace two-thirds of Russian gas imports with other types of gas. “It will be extremely difficult, but doable,” he swears. The Commission proposes a package of measures to this end.

More clean energy: Agriculture must produce more biogas, liquefied natural gas (LNG) imports will increase significantly and new hydrogen production plants must be set up. In addition, the EU must “accelerate the clean energy revolution,” says Timmermans. These include the faster issuance of licenses for wind power plants and solar panels as well as heating generators and their financing with less bureaucracy. The much-talked-about restoration of buildings as well as consumer behavior that should play a role in this regard should advance: If citizens use heating more carefully, ten billion cubic meters of gas could be saved every year. “We need to get rid of Russia faster and we can do it even faster,” he said.

Better grid interconnection: plans include improving the connection between EU member states and synchronizing power grids. So far plans have failed for gas circulation between these countries due to different pipeline systems and complex technical problems because the networks are not harmonized with each other or are not suitable for certain types of gas.

Security of supply: An EU emergency plan must guarantee security of supply. Countries that do not have their own gas deposits should be supplied from central deposits in the event of international supply shortages. New EU rules will be proposed, aiming at a fair compensation of resources and prices as well as opportunities for central purchases.

Compensation for price fluctuations: At the same time, the Commission emphasizes that consumers must be protected from extreme price fluctuations by energy suppliers. This applies to both citizens in need and small enterprises. In this way member countries are given the opportunity to regulate prices and encourage countries that e.g. increase the tax on the market profits of energy enterprises to compensate consumers. In general, the current market rules for energy supply in the EU are out of the question.

Preparing for winter: All experts agree that the EU, meanwhile, can meet its energy needs by summer. The problem lies in the preparations for next winter, when consumption increases significantly again. The Commission proposes a rule that gas reservoirs in Europe in the summer be filled to 90 percent of their capacity. Gas storage facilities should be declared a “critical infrastructure” and solidarity mechanisms should help, until a new legal package sets clear rules.

Many technical and political problems remain

Experts see dangers for extreme situations in the market, when in the summer gas tanks have to be filled. “700 Terrawatt Gas for the EU would currently cost 70 billion euros, compared to 12 billion a year ago,” the Bruegel Research Institute estimated. And without Russian gas this will not be possible anyway. Even in planning to increase liquefied gas imports, researchers note problems: Spain has many terminals needed for liquefied natural gas, LNG, but a pipeline once planned for France has not yet been built. The situation in the member states is extremely different, because energy supply is managed at the national level.

Since the beginning of last winter, the plans for joint purchase of energy were closed again in the drawers, because the member countries have different contract partners, partly with long supply terms and so far have operated individually in the market seeking favorable conditions. Only stronger coordination in this sector can be extremely difficult.

The EU receives a total of 60 percent of its energy from Russia and is heavily dependent on these imports. “I have been warning about this for a long time,” said Frans Timmermans, vice-president of the EU Commission. Germany has been restrained in this regard for years. Now the German government must help in the search for new solutions.

top channel