REPOWEREU INITIATIVE TAKES SHAPE

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solar panels with wind turbine and sunset .concept power energy in nature

Problem: Much of the EU has been heavily dependent on oil, gas, and coal, in particular from Russia. Europe’s infrastructure is designed for traditional energy sources and there has not been sufficient political will to transition to renewables and build the infrastructure they require – until now.

Background: Russia’s attack on Ukraine has motivated the EU to publish the REPowerEU initiative as a pathway to get to energy independence. The initiative’s three key ideas are:

1. Speed up the transition to renewable energy (solar and wind)

2. Increase efficiency and energy savings

3. Switch to green gases, particularly hydrogen, and diversify the import channels of these sources

Policy aims:

The REPowerEU initiative, if turned into law, will expand the scope – or increase the ambition – of current EU Commission proposals, primarily the Energy Efficiency Directive (EED), the Renewable Energy Directive (RED) and the Energy performance of buildings directive (EPBD).

  • To meet its climate targets, the EU must sharply increase the number of heat pumps and solar panels installed in or on buildings over the coming few years.
    • Gas heating will need to be replaced by renewable sources like biomass, solar thermal, geothermal, and excess heat.
    •  The proposed legislation includes:
      • Improving building insulation, increase renovation rates, and change to smart home features
      • Switching to district heating (H2, geothermal, excess heat)
      • Expanding public charging networks for electric vehicles
      • Attracting investment in the tech and infrastructure necessary for fully electrified cities.
  • The legislation calls for defined “go-to areas” for renewables, shortening the permitting process and enabling greater investment.
  • In the short run, liquified natural gas (LNG) will replace Russian gas, with renewable “green” hydrogen the focus for the mid- and long run. The policy’s target for 2030 is 10 million tonnes (mt) of domestic hydrogen production from renewable sources and 10 mt of imported renewable hydrogen.
  • The EU additionally proposes measures to enhance planning security and build in other incentives, since innovation in and expansion of hydrogen and its infrastructure will require long-term, large-scale public as well as private investments.

Timeline: In late September 2022, the EU Parliament will make concrete proposals of how to implement and incorporate the objectives of the RePowerEU plan into the RED and EED. The amendments will also entail an additional law that is looking to fast-track permitting procedures for renewables and low-carbon infrastructure projects of critical strategic importance.

In detail: On July 12, the EU Parliament’s ITRE committee already considered parts of the RePowerEU ambitions in its position on the RED, and the EED raised the ambition level of the EU Commission (EU COM) significantly:

  • 45% renewable energy by 2030, in line with the RePowerEU objective (EU COM had proposed only 40%) 
  • 14% energy savings by 2030 (had been only 9%, from EU COM)
  • 5,7% e-fuels in transportation by 2030 (instead of the 2,6% from the EU COM), which would translate into > 50 GW hydrogen capacity for the transport sector alone
  • 5% quota for innovative renewable energy technologies (floating PV, etc.)

On July 26, the European energy ministers will discuss the current gas crisis, scenarios for the winter, and ways to curb gas demand and to fill the gas storages.

The ITRE agreement will seek plenary adoption by the EU Parliament in September 2022, after the summer break and before the trilogue negotiations with the EU Council (Member States) and the EU Commission are initiated.

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