The EU will undertake a series of "massive investments and reforms" to accelerate the bloc's energy transition and end its dependence on Russian fossil fuels, European Commission President Ursula von der Leyen announced May 18.

The plan, known as REPowerEU, includes a pledge to ramp up the deployment of green energy, with von der Leyen committing to increase the EU's 2030 renewables target to 45% from 40%. It also contains mechanisms to diversify the bloc's gas supplies, including a joint purchasing program whereby gas is contracted collectively by EU nations.

REPowerEU, which was first unveiled March 8 in the early days of Russia's invasion of Ukraine, is designed to shore up the EU's energy security as a result of the war and help combat a period of high energy prices in Europe.

The strategy "will help us to save more energy, accelerate the phasing out of fossil fuels and kick-start investments on a new scale," von der Leyen said at a news conference.

Cutting Russian fossil fuel imports can save almost €100 billion per year, the commission said. REPowerEU objectives require an additional €210 billion of investment between now and 2027.

REPowerEU intends to mobilize close to €300 billion in grants and loans to help implement its proposals, including €225 billion of loans from the EU Recovery and Resilience Facility.

The EU plans to become energy independent from Russia by 2027. It has proposed an import ban on Russian oil by the end of 2022 and a similar sanction on Russian coal, but has stopped short of sanctioning gas imports. Russia accounted for about 45% of the EU's total gas imports in 2021.

Priority on faster permitting

The plan to speed up the installation of renewables includes a dedicated strategy to double the EU's solar capacity by 2025 and install 600 GW by 2030, as well as a proposed legal obligation to install solar panels on all new public, commercial and residential buildings.

The commission also set a target of 10 million tonnes of domestic renewable hydrogen production by 2030, as well as 10 Mt of imports, to replace fossil fuels in industries that are difficult to decarbonize.

However, the higher renewables deployment target hinges largely on a pledge from the commission to tackle slow and complex permitting for wind and solar projects. The commission called on member states to identify "go-to areas" that are particularly suitable for new development, urging them to undertake permitting procedures for such projects that do not exceed one year.

Targets include more savings, fewer emissions

The third pillar of the REPowerEU plan — alongside diversifying energy imports and ramping up renewables — centers on energy saving. The commission plans to increase the EU's 2030 energy efficiency target to 13% from 9% and said behavioral changes could cut gas and oil demand by 5%.

"Even small steps, if they are taken by 440 million people, have a huge effect," Frans Timmermans, executive vice president of the European Commission, said during a separate news conference on May 18.

Meanwhile, although coal-fired power generation may increase in the short term — replacing expensive gas generation — the REPowerEU package should cut Europe's emissions faster as measures to speed up renewables and energy efficiency kick in. The bloc is aiming for net-zero emissions by 2050, with an interim goal to achieve a 55% reduction by 2030.

"We will not end up with more emissions," Timmermans said.

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