REPowerEU: The REPower plan to rapidly reduce dependence on fossil fuels from Russia and accelerate the ecological transition

The European Commission today presented the REPowerEU plan, its response to the strains and disruptions on the global energy market caused by Russia's invasion of Ukraine. Transforming Europe's energy system is urgent for two reasons: it will end the EU's dependence on fossil fuels from Russia, which are used as an economic and political weapon and cost European taxpayers nearly €100 billion annually, and it will help address the climate crisis. By acting as a union, Europe can end its dependence on Russian fossil fuels more quickly. 85% of Europeans believe the EU should reduce its reliance on Russian gas and oil as soon as possible to support Ukraine. The measures in the REPowerEU plan will help achieve this goal through energy savings, diversification of energy supplies, and the accelerated deployment of renewable energy to replace fossil fuels in homes, industry, and power generation.

The green transition will deliver greater economic growth and security in Europe and among our partners, and will strengthen climate action. The Recovery and Resilience Facility (ARF) is at the heart of the REPowerEU plan and supports coordinated planning and financing of cross-border and national infrastructure, as well as energy projects and reforms. The Commission is proposing targeted amendments to the Recovery and Resilience Facility Regulation to incorporate specific REPowerEU chapters into Member States' existing Recovery and Resilience Plans, alongside the numerous relevant reforms and investments already included. The country-specific recommendations from the 2022 European Semester cycle will feed into this process.

Energy savings are the fastest and most cost-effective way to tackle the current energy crisis and reduce energy costs. The Commission proposes to strengthen long-term energy efficiency measures, including raising the binding energy efficiency target under the 'Fit for 55' European Green Deal legislation from 9% to 13%. Energy savings will now help us prepare for the potential challenges of next winter. Against this backdrop, the Commission also published a communication on energy savings today, outlining short-term behavioral changes that could reduce gas and oil demand by 5% and calling on Member States to launch specific communication campaigns targeting households and industry. Member States are also encouraged to use tax measures to promote energy savings, such as reduced VAT rates on energy-efficient heating systems, building insulation, appliances, and products. Furthermore, the Commission will present contingency measures in the event of severe supply disruptions, issue guidelines on customer prioritization criteria, and launch a coordinated EU plan to reduce demand.

The EU has been working with international partners for several months to diversify its supply and has secured record levels of LNG imports and increased pipeline gas deliveries. The newly created EU Energy Platform, supported by regional task forces, will enable the voluntary joint procurement of gas, liquefied natural gas, and hydrogen by pooling demand, optimizing infrastructure use, and coordinating contact with suppliers. As a next step, the Commission will consider developing a "joint procurement mechanism"—similar to the one used for the joint vaccine purchase program—that would negotiate and contract gas purchases on behalf of participating Member States. The Commission will also consider legislative measures to require Member States to diversify their gas supplies over time. Furthermore, the platform will facilitate the joint procurement of renewable hydrogen.

The EU's external energy engagement strategy adopted today will facilitate the diversification of energy supplies and the building of long-term partnerships with suppliers, including cooperation on hydrogen and other green technologies. In line with Global Gateway, the strategy prioritizes the EU's commitment to a global green and just energy transition, increasing energy savings and energy efficiency to reduce price pressures, promoting the development of renewable energy and hydrogen, and intensifying energy diplomacy. Key hydrogen corridors are being developed in the Mediterranean and the North Sea. In light of the Russian attack, the EU will support Ukraine, Moldova, the Western Balkans and Eastern Partnership countries, and our most vulnerable partners. We will continue to work with Ukraine to ensure security of supply and a functioning energy sector, while paving the way for future trade in electricity and renewable hydrogen and rebuilding the energy system under the REPowerUkraine initiative.

A massive expansion and acceleration of renewable energy deployment in the electricity generation, industrial, building, and transport sectors will make us independent faster, drive the green transition, and lead to price reductions over time. The Commission proposes raising the core 2030 renewable energy target under the Fit for 55 package from 40% to 45%. Setting this more ambitious overall target will define the framework for other initiatives, including:

A specific EU solar strategy to double photovoltaic capacity by 2025 and install 600 GW by 2030.

An initiative to expand rooftop solar installations with the gradual introduction of a legal obligation to install solar panels on new public and commercial buildings, as well as on new residential buildings.
Doubling the pace of heat pump deployment and measures to integrate geothermal and solar thermal energy into modernized district heating systems.

A Commission recommendation to address the problem of slow and complex permitting procedures for large renewable energy projects, and a targeted amendment to the Renewable Energy Directive to recognize renewable energy as an area of ​​overriding public interest. Member States should establish dedicated “go-to” areas for renewable energy, i.e., areas with lower environmental risks and shortened and simplified permitting procedures. To quickly identify such “go-to” areas, the Commission is making datasets on ecologically vulnerable areas available through its digital mapping tool for geographic data related to energy, industry, and infrastructure.

The target has been set to produce 10 million tons of hydrogen from renewable sources in the EU by 2030 and to import 10 million tons of renewable hydrogen to replace natural gas, coal, and oil in industries and transport sectors that are difficult to decarbonize. To expand the hydrogen market, the two legislative bodies would need to agree on higher sub-targets for specific sectors. In addition, the Commission will publish two delegated acts on the definition and production of renewable hydrogen to ensure that production leads to net decarbonization. To accelerate hydrogen projects, an additional €200 million will be allocated to research, and the Commission commits to completing the evaluation of the first major projects of common European interest by the summer.

An action plan for biomethane includes instruments such as a new industry alliance for biomethane and financial incentives to increase production to 35 billion m³ by 2030, also within the framework of the common agricultural policy.

Replacing coal, oil, and natural gas in industrial processes will reduce greenhouse gas emissions and strengthen security and competitiveness. Energy savings, fuel substitution, electrification, and increased industrial use of renewable hydrogen, biogas, and biomethane could save up to 35 billion cubic meters of natural gas by 2030, in addition to the savings already envisaged in the "Fit for 55" proposals.

The Commission will introduce carbon-to-impact contracts to promote the use of green hydrogen by industry and provide dedicated funding for REPowerEU under the Innovation Fund, using revenues from emissions trading to further support the reduction of dependence on Russian fossil fuels. The Commission will also issue guidance on renewable energy and electricity supply contracts and provide a technical advisory facility to the European Investment Bank. To maintain or regain technological and industrial leadership in areas such as solar energy and hydrogen, and to support the workforce, the Commission proposes to establish an EU solar industry alliance and a comprehensive skills partnership. Furthermore, the Commission will intensify its work on securing the supply of critical raw materials and prepare a legislative proposal on this matter.

To improve energy savings and efficiency in the transport sector and accelerate the transition to zero-emission vehicles, the Commission will present a package on greening freight transport, which aims to significantly increase energy efficiency in this sector, and it will consider a legislative initiative to increase the share of zero-emission vehicles in public and commercial fleets above a certain size. The EU communication on energy savings also contains numerous recommendations for cities, regions, and national authorities that can effectively contribute to the substitution of fossil fuels in the transport sector.

To achieve the REPowerEU objectives, an additional investment of €210 billion is needed by 2027. This is a down payment on our independence and security. Reducing fossil fuel imports from Russia can also generate savings of nearly €100 billion per year. These investments must be made by the private and public sectors, at the national, cross-border, and EU levels.

To support REPowerEU, €225 billion in loans are already available under the Recovery and Resilience Facility. The Commission today adopted legislation and guidance for Member States outlining how they can amend and supplement their Recovery and Resilience Plans in light of REPowerEU. In addition, the Commission proposes to increase the Recovery and Resilience Facility's funding by €20 billion in grants. These funds would be generated from the sale of EU Emissions Trading System (ETS) allowances currently held in the Market Stability Reserve, which would be auctioned in a manner that avoids market disruption. The ETS not only reduces emissions and the use of fossil fuels but also provides the necessary resources to achieve energy independence.

Under the current Multiannual Financial Framework (MFF), projects for decarbonization and the green transition are already supported by cohesion policy with up to €100 billion through investments in renewable energy, hydrogen, and infrastructure. An additional €26.9 billion could be made available from the Cohesion Fund through voluntary transfers to the Recovery and Resilience Facility. A further €7.5 billion from the Common Agricultural Policy will be made available through voluntary transfers to the Recovery and Resilience Facility. The Commission will double the available funding for the large-scale 2022 call for proposals for the Innovation Fund to approximately €3 billion this coming autumn.

The Trans-European Energy Networks (TEN-E) have contributed to the creation of a resilient and interconnected gas infrastructure in the EU. To complement the existing Projects of Common Interest (PCIs) and fully offset the future loss of Russian gas imports, limited additional gas infrastructure is needed, estimated at around €10 billion. This will meet the substitution needs of the coming decade without creating dependencies on fossil fuels, losing assets, or hindering the achievement of our climate targets. Accelerating electricity-related Projects of Common Interest will also be crucial for adapting the electricity grid to our future needs. The Connecting Europe Facility will support this, and the Commission is launching a new call for proposals today with a budget of €800 million; a further call will follow in early 2023.

On 8 March 2022, in the context of Russia's invasion of Ukraine, the Commission presented a draft plan to make Europe independent of fossil fuels from Russia well before 2030. At the European Council meeting of 24-25 March, the EU Heads of State and Government agreed on this objective and asked the Commission to present the detailed REPowerEU plan, which was adopted today. The recent disruptions to gas supplies to Bulgaria and Poland demonstrate the urgent need to address the unreliability of Russia's energy supply.

In response to Russian aggression against Ukraine's territorial integrity and the increasingly brutal attacks on Ukrainian civilians and cities, the Commission has adopted five far-reaching and unprecedented sanctions packages. Coal imports are already covered by the sanctions regime, and the Commission has put forward proposals for phasing out oil by the end of the year, which are currently being discussed by the Member States.

The European Green Deal is the EU's long-term growth plan to make Europe climate-neutral by 2050. This goal is enshrined in the European Climate Law, as is the legally binding commitment to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. In July 2021, the Commission presented its "Fit for 55" legislative package to implement these targets. Implementing the proposals would already reduce our gas consumption by 30% by 2030, with more than a third of these savings resulting from achieving the EU's energy efficiency target.

On 25 January 2021, the European Council requested the Commission and the High Representative to develop a new external energy strategy. The strategy links energy security with the global transition to clean energy within the framework of external energy policy and diplomacy, and responds to the energy crisis triggered by Russia's invasion of Ukraine and the existential threat posed by climate change. The EU will continue to support energy security and the green transition of Ukraine, Moldova, and its immediate neighborhood partner countries. The strategy acknowledges that Russia's invasion of Ukraine has global repercussions for energy markets, particularly affecting developing partner countries. The EU will continue to work globally to ensure secure, sustainable, and affordable energy.

Solar glass – The forgotten component – ​​Image: Xpert.Digital / Juice Flair|Shutterstock.com

When discussing the entire PV value chain, the component that is heaviest by weight after the solar cells is consistently neglected: the solar glass. I am unaware of any publication to date that has described the problems involved in procuring large quantities of solar glass for the gigawatt-scale production of PV modules to realize the energy transition.

More information here:

• Solar glass – the forgotten component – ​​the next bottleneck is inevitable