Content updated 14 Februrary 2023
RePowerEU
In early March 2022, the Commission proposed the outline of a plan, RePowerEU to make Europe independent from Russian fossil fuels before 2030, in light of Russia’s invasion of Ukraine.
The measures in the REPowerEU Plan include energy savings, diversification of energy supplies, and accelerated roll-out of renewable energy to replace fossil fuels in homes, industry and power generation.
The Commission has proposed to more than double the rate of renewables in the EU, from 20% to at least 45% by 2030.
In May 2022, the Commission published an ‘EU Save Energy Communication’, which details short-term behavioural changes which could cut gas and oil demand by 5%. It also encourages Member States to start specific communication campaigns targeting households and industry
Energy savings are considered as the quickest and cheapest way to address the current energy crisis, and reduce bills. The Commission proposes to enhance long-term energy efficiency measures, including an increase from 9% to 13% of the binding Energy Efficiency Target under the Fit for 55 package of the European Green Deal legislation.
Industry and transport
According to the Commission, energy efficiency, fuel substitution, electrification, and an enhanced uptake of renewable hydrogen, biogas and biomethane by industry could save up to 35 billion cubic meters of natural gas by 2030 on top of what is foreseen under the Fit for 55 proposals.
The Commission will roll out carbon contracts for difference to support the uptake of green hydrogen by industry and specific financing for REPowerEU under the Innovation Fund and give guidance on renewable energy and power purchase agreements.
The Commission also proposes to establish an EU Solar Industry Alliance and a large-scale skills partnership, and a Greening of Freight Package. The EU Save Energy Communication includes many recommendations to cities, regions and national authorities that can effectively contribute to the substitution of fossil fuels in the transport sector.
Financing RePowerEU
Delivering the REPowerEU objectives requires an additional investment of €210 billion between now and 2027. However, cutting Russian fossil fuel imports can also save the EU almost €100 billion per year.
To support REPowerEU, funding is available through loans under The Recovery and Resilience Facility (RRF).
