EU aims to slash Russian gas imports by two-thirds in 2022

The European Union has set out ambitious plans to cut its dependence on Russian gas imports to one-third of their current level by the end of this year.

Under the plan, which was announced on Tuesday (8 March) by the European Commission, the EU said it will diversify its gas supplies, speed up the roll-out of renewable gases and replace gas in heating and power generation.

The EU plans were published ahead of business and energy secretary Kwasi Kwarteng’s announcement on Monday afternoon of a ban on oil imports from Russia by the end of 2022. He said ministers are also exploring how to reduce the UK’s reliance on Russian gas, which makes up four per cent of the country’s supplies.

The measures, outlined in the REPowerEU plan, are to “gradually” remove by 2030  “at least” 155 billion cubic metre of natural gas use, which is equivalent to the volume imported from Russia in 2021.

Nearly two thirds of that reduction can be achieved within a single year, ending the EU’s “overdependence” on supply from Russia, the commission claimed.

The body is drawing up legislation by the beginning of next month that will require at least 90% of the capacity of underground gas storage across the EU to be filled up by 1 October each year.

The commission has said it can coordinate refilling operations, for example through joint procurement, collecting orders and matching supplies.

The plan also proposed to diversify European gas supplies by increasing LNG imports and pipeline flows from non-Russian suppliers as well as boosting levels of biomethane and hydrogen production.

The commission said the EU must reduce more rapidly its dependence on fossil fuels by improving energy efficiency and increasing the share of renewables in the electricity generation.

The plan also said existing state aid rules will be eased to allow member states to help consumers by regulating prices in “exceptional circumstances” and introducing windfall levies on high energy sector profits and emissions trading .

The commission will consult with member states on the need for and scope of a new state aid ‘Temporary Crisis Framework’ to allow aid to be granted to companies facing high energy costs as a result of the crisis.

And to address “skyrocketing” energy prices, the commission will look into emergency measures to limit the knock-on effect of gas costs on electricity bills, such as sanctioning temporary price limits.

The EU currently relies on Russian gas for nearly half of the 90% of gas consumed across the bloc which is imported.

Frans Timmermans, executive vice-president for the European Green Deal, said: “It is time we tackle our vulnerabilities and rapidly become more independent in our energy choices. Let’s dash into renewable energy at lightning speed.

“Renewables are a cheap, clean, and potentially endless source of energy and instead of funding the fossil fuel industry elsewhere, they create jobs here. Putin’s war in Ukraine demonstrates the urgency of accelerating our clean energy transition.”

Commenting on the UK’s plans, Amy MacConnachie, director of external affairs at the Association for Renewable Energy and Clean Technology, said: “We welcome the government’s ban on Russian oil imports and hope similar action on gas quickly follows.

“The UK should not be helping to inadvertently fund the invasion of Ukraine and we stand in solidarity with the Ukrainian people.

“Although only accounting for a relatively small amount of the UK’s oil and gas supplies, we know that the government will need to take significant action to replace any shortfall,” she added.

“However, it is crucial that the government looks to accelerate the deployment of renewables for its home-grown energy, rather than regressively binding the UK to more fossil fuels.

“That means boosting home insulation, replacing gas boilers with green alternatives, and ramping up the installation of renewables and clean tech, both domestically and at a utility scale.

“Our sector stands ready to deliver an energy future which is independent, secure and stable.”

Sepi Golzari-Munro, deputy director at the Energy and Climate Intelligence Unit, said: “Leaders have grasped the ugly truth: that our dependence on oil and gas continues to replenish Putin’s war chest, so the UK and European Commission proposals today are significant.

“Plans for accelerated renewables, heat pump and efficiency roll out to cut dependence not only on Russian gas, but gas overall, will bring down costs for European consumers and businesses while shaking off Putin’s grip.

“There will be bumps in the road and emissions may rise slightly in the short-term but the overarching message cannot be clearer: net zero is now synonymous with energy security and national interest.”