EU Accelerates Renewables and Seek More US Gas to Reduce Dependency on Russia

Commissioner Dan Jorgensen said that in order to reduce its dependency on Russian energy, the EU plans to boost US gas imports and speed up renewable energy.

According to EU Energy Commissioner Dan Jorgensen, the EU will accelerate its shift to renewable energy sources and look to boost gas imports from nations like the US in order to lessen its need on Russian supply.

After Moscow invaded Ukraine in 2022, Jorgensen stressed in a joint media interview the necessity of stopping fossil fuel payments to Russia.

Although the EU has committed to phase out Russian fossil fuels by 2027, last year saw a rise in the import of Russian liquefied natural gas (LNG), despite a sharp decline in Russian pipeline gas supply.

Jorgensen made reference to Russian President Vladimir Putin when he stated, “We need to make sure that we produce our own energy instead of using taxpayers’ money, citizens’ money, to pay for gas where the revenue goes into Putin’s war chest.”

In order to accomplish this, Jorgensen stated that Brussels was working on amending permit regulations to speed up the development of renewable energy projects. But, he admitted, gas would continue to be used for home heating and in some businesses where electricity cannot swiftly replace it.

There will still be a demand for gas, therefore we will need to look outside of Russia for it, which may require greater imports from the US, Jorgensen said. After then, it is my responsibility to ensure that it is not Russian and is inexpensive.

In the midst of European energy markets’ instability, where benchmark gas prices recently hit two-year highs, there was a demand for alternate gas suppliers.

Despite the rapid expansion of renewable energy, gas prices continue to affect the cost of electricity for European consumers because of the EU’s electricity market regulations, which now tie gas pricing to retail power prices.

According to Jorgensen, the European Commission is trying to tighten regulations on the gas market in order to stop speculative trading from driving up prices.

In order to separate retail power pricing from excessive gas prices, the Commission intends to introduce new financial instruments the following week.

Although the European Commission has been interacting with LNG suppliers and contemplating investments in LNG export infrastructure overseas in order to secure more stable and long-term contracts, the EU does not buy gas directly. This was revealed in draft documents earlier this week.

The leaked draft materials, which the Commission is anticipated to release next week, prompted Jorgensen to reject to comment.

Nonetheless, he restated the EU’s resolve to lessen reliance on Russian gas while maintaining a steady and reasonably priced energy supply instead.

European gas contracts are required by EU law to expire by 2049 in order to meet the bloc’s 2050 net-zero emissions target for climate change.