Commission aims to REPowerEU

Press Release

The Commission today unveiled their new plan REPowerEU, intended to make Europe independent from Russian fossil fuels and respond to rising energy prices.

Upon the release of the Communication, Kristian Ruby, Eurelectric Secretary General said:

“Reducing gas imports from Russia by two-thirds still this year is difficult, but doable. In that sense, the European Commission takes necessary action.”

Positively, the Commission means encouraging an accelerated deployment of renewables and efforts to minimise permitting bottlenecks.

“Lowering Europe’s dependence on fossil imports will require a reliable electricity system drawing on the full range of technologies. It is encouraging that the European Commission actively seeks to harvest the clean-energy potential of electricity by accelerating heat pump installations and deployment of new renewable projects. Permitting delays remain the key barrier for new power capacity”, Kristian Ruby added.

The publication, however, also contains guidance for Member States on how to regulate prices in exceptional circumstances, and how they can redistribute, so called, ‘windfall profits’ from the energy sector to vulnerable consumers. The Communication also recalls the possibility of using ETS revenues to lower household bills.

The increased scope for government interventions in the market is concerning.

"The power sector remains very concerned about the outlook on market interventions. The combination of regulated retail prices and clawback measures could seriously threaten the financial health of the industry and make it less attractive to investors. Now more than ever, the electricity sector needs investor confidence,” Kristian Ruby concluded.