‘Turn short-term crisis measures into lasting reforms’: Experts on EU’s energy battle plan
Facebook
Twitter
Flipboard
Send
Reddit
Linkedin
Messenger
Telegram
VK
Bluesky
Threads
Whatsapp
Green energy organisations have praised the proposals, but underline that they need to be supported with concrete, implementable reforms in order to be effective.
As geopolitical tensions linked to the US-Israel war in Iran drive volatility in fossil fuel markets, Europeans are facing alarming energy cost spikes.
ADVERTISEMENT
ADVERTISEMENT
Surging prices could impact living standards, strain businesses, and call for substantial public spending to cushion the blow.
“The latest fossil fuel price spike - the second to hit Europe in four years - is a painful reminder that fossil fuel dependency is a strategic vulnerability for Europe, and the fundamental reason for its high energy prices,” says Chris Rosslowe, an analyst at energy think tank Ember.
“Clean power paired with electrification is the only way to permanently protect against sudden gas and power price hikes.”
In a bid to reduce dependency on unstable oil and gas sources, the European Commission presented a plan of action on 22 April.
AccelerateEU aims to deliver “energy security [and] clean, abundant and homegrown energy, which is affordable to EU consumers and businesses”.
The measures range from providing energy vouchers and lowering electricity taxes to removing barriers to the electrification of the industrial, transport and building sectors.
Green energy organisations have praised the proposals, but underline that they need to be supported with concrete, implementable reforms in order to be effective.
What is the EU’s clean energy plan?
AccelerateEU comprises five pillars that aim to “provide immediate relief to consumers facing energy price spikes and accelerate the transition to secure and affordable clean energy”.
The Commission proposes increased coordination between EU countries, both within the single market and with fossil fuel providers, such as filling gas storage facilities, exceptional releases of oil stocks, or adopting national measures.
Another set of measures will support EU countries in protecting consumers, as well as industry, from price peaks, including targeted income support schemes, energy vouchers and lowering excise duties on electricity – which are typically far higher than gas taxes – for vulnerable households.
RelatedThe shift to homegrown clean energy will be accelerated to reduce imports of oil and gas. To encourage manufacturers to increase capacity and invest in more renewables and skills, measures include an electrification target, as well as removing barriers to the electrification of the industrial, transport and building sectors.
An upgrade and transformation of the EU’s energy system will ensure that current rules are fully implemented and speed up negotiations on the EU Grids Package. Outdated grid networks, which deliver energy to homes and businesses, are a major barrier to the expansion of wind and solar power.
Finally, AccelerateEU proposes to scale up private capital input for the clean energy transition, mobilising public funding on both an EU and national level.
‘Turn short-term crisis measures into lasting reforms’
Clean energy groups have backed the proposals, but urge actions that not only protect consumers now, but also accelerate the transition to a more stable and affordable energy system.
“The Commission rightly recognises that Europe’s exposure to energy price shocks is not the result of a temporary failure, but rather a structural one,” says Caterina Molinari, Senior Policy Advisor Finance at ECCO.
“Turning short-term crisis measures into lasting reforms requires rebalancing taxation and levies to lower the cost of electricity and accelerate electrification.”
Louise Sunderland, Europe director of the Regulatory Assistance project, has called the proposal to reduce network and tax elements of the electricity bill - which account for on average across the EU over 50 per cent of the household bill - a “quick acting step in the right direction”.
“But these reforms will only be as effective as their implementation and many governments have not yet made use of their existing ability to reduce taxation on electricity,” she adds.
RelatedDries Acke, Deputy CEO of SolarPower Europe, has praised the Commission’s decision to set a single EU-wide electrification target and recognition of the need to scale EU storage capacity to 200 GW by 2030.
Insufficient energy storage capacity is a key bottleneck for renewables in Europe, with some countries regularly forced to shut down wind and solar production due to grid congestion.
“Battery energy storage will be the main driver of this scale-up, enabling an electricity system that is both secure and competitive,” Acke says.
“The Commission, however, fails to propose concrete measures to get to these levels of battery storage and other non-fossil flexibility.”
As Juliet Phillips, campaigner at Beyond Fossil Fuels, concludes, “AccelerateEU has diagnosed the problem, but there remain gaps in the long-term cure.”
Go to accessibility shortcuts Share CommentsRead more
Ghost fish farms pollute Greek seas and threaten ship safety
Схожі новини
