The European Commission presents the REPowerEU Plan to increase energy efficiency

The European Commission has presented the REPowerEU Plan, its response to the difficulties and disruption of the global energy market caused by the Russian invasion of Ukraine. The aim is to transform Europe’s energy system by ending the EU’s dependence on Russian fossil fuels and addressing the climate crisis.

The measures of the REPowerEU Plan can respond to this, through energy savings, diversification of energy supply and accelerated deployment of renewable energy to replace fossil fuels in homes, industry and power generation.

In addition, the green transformation will strengthen economic growth, security and climate action for Europe and its partners. The Recovery and Resilience Facility (RRF) is at the core of the REPowerEU Plan and supports coordinated planning and financing of national and cross-border infrastructure, as well as energy projects and reforms.

The Commission proposes to make specific amendments to the RRF Regulation to integrate specific chapters of REPowerEU into Member States’ existing recovery and resilience plans (RPRs). The country-specific recommendations of the 2022 European Semester cycle will be incorporated into this process.

Energy efficiency

The Commission wants to improve energy efficiency measures in the long term, including an increase from 9% to 13% of the binding energy efficiency target under the “Fit for 55” package of European Green Deal legislation. Saving energy will now help the countries of the Union to be prepared for the challenges of next winter.

The Commission has also published an ‘EU Energy Savings Communication’ detailing short-term behavioural changes that could reduce oil and gas demand by 5% and encouraging Member States to launch targeted communication campaigns targeting households and industry.

It is also encouraged to use tax measures to encourage energy savings, such as reduced VAT rates on energy-efficient heating systems, insulation of buildings, household appliances and products.

Deployment of renewable energies

The Commission proposes to increase the 2030 headline target for renewable energy from 40% to 45% under the “Fit for 55” package. Setting this greater overall ambition will create the framework for other initiatives, including an EU solar strategy dedicated to doubling solar PV capacity by 2025 and installing 600 GW by 2030; a solar rooftop initiative with a gradual legal obligation to install solar panels on new public and commercial buildings and new residential buildings.

It also proposes doubling the rate of deployment of heat pumps and measures to integrate geothermal and solar thermal energy into community heating systems; and the recommendation that Member States should establish specific access areas for renewable energy with abbreviated and simplified authorisation processes in areas with lower environmental risks.

It also sets a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of imports by 2030, to replace natural gas, coal and oil in hard-to-decarbonise industries and transport sectors; and a Biomethane Action Plan setting out tools including a new Biomethane Industrial Alliance and financial incentives to increase production to 35 bcm by 2030, including through the Common Agricultural Policy.

Measures in the gas markets

The Commission makes available to Member States three short-term measures that can be used now and in the next heating season, such as the possibility for Member States to temporarily extend the regulation of prices to the final consumer to a wide range of customers, including households and industry.

In addition, temporary ‘circuit breakers’ and emergency liquidity measures to support the effective functioning of commodity markets, in full compliance with State aid provisions; and using the EU Energy Platform to aggregate gas demand, ensure competitive gas prices through voluntary joint purchases, and reduce the EU’s dependence on Russian fossil fuels.

In addition, in the event of a total interruption of the russian gas supply, exceptional measures may be taken. Thus, the Commission will facilitate the creation of a coordinated EU demand reduction plan with preventive voluntary reduction measures to be prepared in the event of an emergency; and an administrative cap on the price of gas could be set at EU level in response to a total supply disruption.

Source: ESEficiencia