The global energy group has developed a roadmap to help deal with Europe’s dependence on natural gas from Russia, which has given President Vladimir Putin leverage over the European Union, making it difficult to impose energy sanctions on the country as punishment for its intrusion. Ukraine.
The plan of the International Energy Agency, a political body made up of 31 government representatives, is to reduce the region’s dependence on Russian natural gas by one-third in one year while adhering to the European Green Deal, an EU agreement to reduce greenhouse gas emissions. gas emissions by at least 55% of the 1990 level by 2030.
His recommendations are similar to measures reportedly coming from the EU that would cut Russia’s natural gas imports by 80% next year.
But, according to experts, it will be difficult to quickly turn off the tap on Russian gas. This is both because the EU is so dependent on it and because it has committed itself to limiting its greenhouse gas emissions.
According to the IEA, in 2021 the EU imported 155 billion cubic meters of natural gas from Russia, which is almost half (45%) of its gas imports and almost 40% of its total gas consumption. Switching from burning natural gas to burning coal is a quick and technically feasible solution, but it will not help the EU achieve its climate goals.
The IEA cut, called the “10-Point Plan to Reduce the European Union’s Dependence on Russian Natural Gas”, is a set of actions aimed at diversifying Europe’s energy supply, accelerating its transition to renewables and focusing on energy efficiency.
“No one has any more illusions. Russia’s use of its natural gas resources as an economic and political weapon shows that Europe needs to act quickly to be prepared to face significant uncertainty about Russian gas supplies next winter,” said IEA Executive Director Fatih Birol. a written statement announcing the plan.
Here is a summary of the 10 recommendations:
Do not renew gas supply contracts with Russia. The EU currently has a contract with Gazprom, the multinational energy corporation with a majority stake in Russia, to import more than 15 billion cubic meters of gas per year. This contract expires at the end of the year. The EU is advised to wait for this and other gas import contracts to expire.
Replace expired contracts from Russia with contracts from other sources. Domestic natural gas production and imports from non-Russian sources, including Azerbaijan and Norway, should increase next year by as much as 10 billion cubic meters compared to 2021. But the IEA believes the EU should go further and increase imports of liquefied natural gas (LNG), which is natural gas that has been cooled to a liquid state at around -260° Fahrenheit to make it easier to transport on ships or trucks.
The IEA also recommends that the EU increase the supply of biogas and biomethane, but expansion of these supply chains takes time. The same can be said for the supply chains of low-carbon “green” hydrogen produced by electrolysis.
Store more gas. Gas storage gives any region a buffer of safety in case of changing seasons, extreme events or, in this case, war. The IEA will fill the storage capacity to 90% by October 1 to keep homes warm in the winter.
Accelerate the adoption of renewable energy sources such as wind and solar. In 2022, the EU is expected to see a 15% increase in capacity generated from renewable energy compared to 2021, driven by increased spending on new solar and wind installations and favorable weather conditions. The IEA recommends accelerating the implementation of renewable energy projects by eliminating permit delays. This will require more administrative workers, which will improve communication between permitting authorities, set clear deadlines and digitize applications.
Keep existing nuclear plants open and operate bioenergy plants at full capacity. Some of Europe’s existing nuclear reactors were taken offline in 2021 for maintenance and safety checks, but when those plants come online again this year, they will add to clean energy production. Nuclear power plants, once built, generate energy without greenhouse gas emissions. In addition, a new nuclear power plant in Finland is expected to begin commercial levels of nuclear power in 2022, helping to meet the region’s emission targets.
Several nuclear power reactors are scheduled to be shut down in 2022 and 2023, but keeping those reactors operational would reduce the EU’s need for Russian natural gas.
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In addition, bioenergy power plants that operate at only 50% capacity must be fully fueled and run at full capacity.
Protect vulnerable clients. When energy prices rise, energy companies prosper, while some consumers often face economic hardship. The EU must be prepared to support low-income consumers paying high electricity bills. One way to explain the current market with high energy prices is to impose temporary taxes on the excessively high profits of energy companies and use the money raised to pay electricity bills for low-income users.
Accelerate the replacement of gas boilers with heat pumps. The IEA is calling on the EU to accelerate the pace of replacing gas stoves with heat pumps in homes.
Doubling the rate at which heat pumps are installed in homes will cost the region $16.3 billion (€15 billion) and save another 2 billion cubic meters of gas in the first year. According to the IEA, it would be ideal to simultaneously increase the number of energy efficiency projects in homes.
Accelerating energy efficiency programs in buildings and industrial facilities. Currently, about 1% of buildings in the EU are retrofitted annually for energy efficiency. To maximize impact, the region should focus on improving the efficiency of the least efficient homes and non-residential buildings.
The IEA also proposes to accelerate the installation of smart thermostats to reduce energy consumption. Adoption can be accelerated, for example, by providing subsidies to households to install them.
Ask the people to turn off the heating. Most buildings average almost 72 degrees Fahrenheit, and asking consumers to turn off the thermostat by 1.8 degrees Fahrenheit or 1 degree Celsius could reduce gas demand by 10 billion cubic meters.
Improve reliability of low emission power system mechanisms. The IEA recommends that the EU focus on improving the resilience of the energy system, both in terms of resilience to seasonal changes and the ability to cope with short-term spikes in demand. It currently manages the ebb and flow of demand in the grid from stored natural gas.
Increasing the reliability and flexibility of the grid in the future will depend on a diverse portfolio of solutions, including both battery technologies and other large-scale long-term energy storage technologies. Some low-carbon gases produced in the EU, such as biomethane, low-carbon hydrogen and synthetic methane, could be part of improving grid reliability, but would not be enough to meet overall energy needs.
It’s worth noting that the IEA’s plan pales in comparison to news of another plan reportedly received from the EU on Tuesday, which calls for an 80% cut in Russian natural gas imports next year.