REPowerEU mobilises €300bn to end Russian gas dependence

"When Europe acts together, it has more clout." So said European Commission president Ursula von der Leyen in a press briefing today about the urgent need to end Europe's dependence on Russian gas while simultaneously ensuring energy security.

"Putin's war is heavily disrupting the global energy market. It shows on one hand how dependent we are on imported fossil fuel, but it also shows how vulnerable we are on relying on Russia for importing our fossil fuels...Therefore we must now reduce, as soon as possible, our dependency on Russian fossil fuels".

Von der Leyen made this statement while announcing the mobilising of REPowerEU, a package designed to drive the phasing out of Russian fossil fuels. "We are going in the right direction, but we need to accelerate," said von der Leyen.

Also of interest
Siemens exits Russia as a result of Ukraine war
EU energy ministers address gas supply cuts in Europe

The package will mobilise up to euros 300 billion euros ($315 billion) to ensure investments are directed into three main pillars:

• Demand-side: Increasing the EU efficiency target for 2030 from 9% to 13%.
• Supply-side: Diversifying away from Russia to other reliable suppliers. A platform has been established for the joint purchase of gas, LNG, and hydrogen. Also, a mechanism for joint procurement and joint outreach to supplying countries will help secure the needed energy imports without the competition between member states.
• Accelerating investment in renewables: Increasing the 2030 target from 40% to 45% renewable energy.

The 300 billion euros will be made available through grants, as well as 225 billion euros ($237 billion) in loans, 10 billion euros ($10.5 billion) for LNG, and 2 billion to develop oil infrastructure to stop the shipment of Russian oil.

Von der Leyen added that several key actions will be put in place to support this package and speed up the energy transition, such as speeding up permitting procedures for renewables.

"The foundation is already in place through the European Green Deal and Fit for 55... but we need to take it to another level to become independent as soon as possible.

"REPowerEU will help us save energy, phase out fossil fuel and kickstart investment on a new scale - [it's the] speed charging of our EU Green Deal," added Von der Leyen.

Commenting on the announcement, Ignacio Galán, CEO and chairman of Iberdrola, said: “...REPowerEU is a set of progressive proposals that will help Europe to accelerate this path by boosting investments in renewables, networks, storage and green hydrogen. This will also increase self-sufficiency, improve our competitiveness and create industrial development and jobs all over Europe.

“Increasing the 2030 EU share of renewable energy from 40% to 45% is a bold but achievable step, and the promise to speed up permitting procedures for renewables and grids is both welcome and necessary.

“The private sector is already doing its part, and we stand ready to make this plan a reality as quickly as member states can translate the proposals into clear policies backed by stable regulation across the EU.“