IEA Discloses 10-Point Plan to Reduce EU Reliance on Russian Gas
The International Energy Agency released a suite of measures spanning natural gas supplies, the electricity system and end-use sectors that could result in the EU’s annual call on Russian gas imports falling by over one-third within one year.
Measures that relate to gas supply include no new gas supply contracts with Russia; replacing Russian supplies with gas from alternative sources; and, introducing minimum gas storage obligations to boost market resilience.
For the power sector, the measures include accelerating the deployment of new wind and solar projects; maximizing generation from existing dispatchable low-emissions sources, including bioenergy and nuclear; and, enacting short-term measures to shelter vulnerable electricity consumers from high prices.
Measures concerning end-use sectors include speeding up the replacement of gas boilers with heat pumps; accelerating energy efficiency improvements in buildings and industry; and, encouraging a temporary thermostat adjustment by consumers.
The 10-point plan also includes stepping up efforts to diversify and decarbonize sources of power system flexibility. If these measures are fully implemented, the EU’s annual call on Russian gas imports could drop by over 50 billion cubic feet while still reducing emissions, the IEA said.
For these measures to be successfully implemented, it is critical that EU governments strengthen international cooperation with alternative pipeline and LNG exporters, as well as with other major gas importers and consumers. Clear communication between governments, industry and consumers will also be essential, according to the IEA.
Agency Confirms Individual Contributions to Release of Strategic Oil Reserves
IEA also confirmed individual contributions by its member countries toward the coordinated release of strategic oil reserves, with the amount surpassing the 60 million barrels previously announced.
The IEA Governing Board confirmed that the total amount committed to date stands at 61.7 million barrels, making it the largest stock release in the history of the agency. READ: IEA Increases Global Oil Demand Growth Outlook
“The decision taken to release emergency stocks – for only the fourth time in the IEA’s history – has sent a strong message that IEA members are unified in support of Ukraine and will do all they can to provide stability to the market during these difficult days,” said IEA Executive Director Fatih Birol.
As the IEA continues to monitor the situation and its impacts on energy markets, Birol said the IEA is ready to recommend additional steps to build on the initial release.
IEA member countries hold 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry. The initial response represents only 3% of total emergency reserves, the agency said. #IEA Discloses 10-Point Plan to Reduce EU Reliance on Russian Gas
