EUROPEAN
COMMISSION

Brussels, 18.5.2022
COM(2022) 230 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEANPARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEANECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE
REGIONS
REPowerEU Plan
{SWD(2022) 230 final}EN

EN

Introduction
Russia’s unprovoked and unjustified military aggression against Ukraine, has massively
disrupted the world’s energy system. It has caused hardship as a result of high energy prices
and it has heightened energy security concerns, bringing to the fore the EU’s over-dependence
on gas, oil and coal imports from Russia. High amounts paid for Russia’s fossil fuels are
helping Russia sustain its war against Ukraine.
In March 2022, EU leaders agreed in the European Council1 to phase out Europe’s dependency
on Russian energy imports as soon as possible. Drawing on the Commission’s communication2,
they invited the Commission to swiftly put forward a detailed REPowerEU plan. Coal and oil
imports are now to be covered by the sanctions regime. The recent gas supply interruptions to
Bulgaria and Poland demonstrate the urgency to address the lack of reliability of Russianenergy supplies.
REPowerEU is about rapidly reducing our dependence on Russian fossil fuels by fast
forwarding the clean transition and joining forces to achieve a more resilient energy
system and a true Energy Union.
We can significantly reduce our dependency on Russian fossil fuels already this year, andaccelerate the energy transition. Building on the Fit for 55 package of proposals and completingthe actions on energy security of supply and storage, this REPowerEU plan puts forward an
additional set of actions to3:
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save energy;
diversify supplies;
quickly substitute fossil fuels by accelerating Europe’s clean energy transition;
smartly combine investments and reforms.

European Council Conclusions (24 and 25 March 2022)
Communication on REPowerEU: Joint European Action for more affordable, secure and sustainable energy,COM(2022) 108 final, (8.3.2022)
See the complete list of actions in Annex 1

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Taken together, these actions will structurally transform EU’s energy system. They require
effective coordination between European regulatory and infrastructure measures, as well as
national investment and reforms and joined-up energy diplomacy. They also require
coordination between action on the demand side, to reduce energy consumption and transform
industrial processes to replace gas, oil and coal with renewable electricity and fossil-freehydrogen, with action on the supply side to create the capacity and framework to roll out andproduce renewable.
Fairness and solidarity are defining principles of the European Green Deal. Our joint action toaccelerate the clean energy transition therefore reinforces the need for effective employment,
skills and social policies, in line with the European Pillar of Social Rights.Dependence amongst
Member States on Russian energy sources differs as the energy situationand energy mixes
differ from one country to the other. The approach taken in this REPowerEU plan reflects thesedifferences and proposes a variety of balanced responses corresponding to the specific Member
States needs whilst moving the EU as a whole towards climate neutrality by 2050.
REPowerEU builds on the full implementation of the Fit for 55 proposals tabled last year
without modifying the ambition of achieving at least -55 % net GHG emissions by 2030 andclimate neutrality by 2050 in line with the European Green Deal. It will have a positive impact
on EU’s emission reduction over the decade. However, the fast phasing out of fossil fuelimports from Russia will affect the transition trajectory, or how we reach our climate target,
compared to that under previous assumptions.
The REPowerEU plan cannot work without a fast implementation of all Fit for 55 proposals
and higher targets for renewables and energy efficiency. In the new reality, the EU’s gas
consumption will reduce at a faster pace, limiting the role of gas as a transitional fuel. However,shifting away from Russian fossil fuels will also require targeted investments for security ofsupply in gas infrastructure and very limited changes to oil infrastructure alongside large-scale
investments in the electricity grid and an EU-wide hydrogen backbone. In parallel, some of theexisting coal capacities might also be used longer than initially expected, with a role for nuclear
power and domestic gas resources too.
The public expects the EU and its Member States to follow through on the commitments madeto reduce our dependence on Russian fossil fuels. 85% of people polled believe that the EUshould reduce its dependency on Russian gas and oil as soon as possible. 84% agree that
Russia’s aggression against Ukraine makes it more urgent for EU Member States to invest in
renewable energy4.
While some Member States have already announced their intention to end fossil fuel imports
from Russia, no Member State can tackle this challenge on its own. By carrying out jointneeds assessments and planning, joint purchases and greater coordination, we will ensure thatthe phasing out of our dependency on Russian fossil fuels is both achievable and affordable for
all Member States. Legislation on renewable and energy efficiency will help realise ambitious
targets. A truly interconnected and resilient EU energy network will provide energy security
for all. These actions constitute our plan to repower the EU.

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Flash Eurobarometer 506: EU's response to the war in Ukraine, 5 May 2022.

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1.

Energy savings

Savings are the quickest and cheapest way to address the current energy crisis. Reducing energy
consumption cuts households’ and companies’ high energy bills in the short and long term, anddecreases imports of Russian fossil fuels. Reducing energy consumption through higher
efficiency is a vital component of the clean energy transition which increases the resilience of
the EU economy and shields its competitiveness against high fossil fuel prices.
Saving energy will help our supplies go further in the critical months ahead, while investments
are being rolled out. The accompanying EU Save Energy Communication presents a twopronged approach: strengthening structural change with mid- to long-term energy efficiency
measures and achieving immediate energy savings through behavioural changes.
Fit for 55 would lower our gas consumption by 30% by 2030, with more than a third of suchsavings coming from meeting the EU energy efficiency target. Updated modelling assesses theimpact of the phase out of Russian fossil fuel dependence5 in terms of higher energy prices andlower use of natural gas. A further reduction of energy consumption compared to the previous
Energy Efficiency Directive proposal6 and higher renewable energy targets would enable the
EU to fully meet the REPowerEU objectives, with other parts of the Fit for 55 package
unchanged.
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The Commission therefore proposes to increase to 13% the binding target in the Energy
Efficiency Directive.

In addition, the Commission invites the Parliament and Council to enable additional savingsand energy efficiency gains in buildings through the Energy Performance of Buildings
Directive, and to uphold the ambition of the Commission proposal for a Regulation on
Ecodesign for Sustainable Products7, the rapid deployment of which will lead to further energy
savings through improved energy and resource efficiency of a broad range of products.
Pending agreement on the legislative measures, immediate energy savings can be made bychanging our behaviour. The European Commission has launched, in cooperation with theInternational Energy Agency (IEA), a nine-point plan “Playing my part” for reducing energy
use in the EU. Based on input from stakeholders, the IEA estimates that these types of shortterm energy saving measures could achieve a 5% reduction in the demand for gas (around 13bcm) and in that for oil (around 16 mtoe).
Member States should also make full use of supporting measures such as reduced VAT rates
for high efficiency heating systems and for insulation in buildings and other energy pricing
measures, which encourage switching to heat pumps and purchase of more efficient appliances.
Such measures should cushion social and distributional impacts, e.g. focusing on vulnerable
households struggling to pay their energy bills and to manage the potential impact of theaccelerated energy transition on the labour market, with immediate upskilling and reskillingneeds.

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REPowerEU scenario in the staff working document Implementing the REPowerEU Action Plan: Investment Needs,
Hydrogen Accelerator and Achieving the Bio-methane Targets, accompanying this communication.
COM(2021) 558 final, 14.7.2021
COM(2022) 142 final, 30.03.2022

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Stepped up implementation and ambitious updating of National Energy and Climate Plans(NECPs) are key in delivering the REPowerEU objectives. NECPs have a crucial role inenhancing investor confidence and investment predictability. They provide a good frameworkfor planning and encouraging the reduction of use of fossil fuels.
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The Commission intends to publish guidance later this year for the Member States’
update of their NECPs in 2024 and will report progress on REPowerEU, among others,
through the State of the Energy Union and Climate Action reports.

Regions and cities are playing a leading role in developing energy saving measures tailored totheir local context. They should launch awareness and information and support schemes,
energy audits and energy management plans, pledging savings targets, and ensure citizens’
engagement such as through the European Mission on climate-neutral and smart cities or theEuropean Urban Initiative under cohesion policy.
2.

Diversifying energy imports

The EU has been working intensively with international partners for several months to diversify
supplies8 and mitigate the rise in energy prices.
Following the mandate by the European Council in March, the Commission and Member States
have set up an EU Energy Platform for the voluntary common purchase of gas, LNG andhydrogen. On 5 May, the Commission and Bulgaria set up a first regional taskforce, as part of
the EU's Energy Purchase Platform, in coordination with neighbours in the south east ofEurope.
The EU Energy Platform will fulfil three functions supporting common purchase of gas:

Demand aggregation and structuring: The demand pool will identify and aggregate
contestable volumes based on expiring long-term contracts as well as flexible volumes
under existing long-term gas contracts which could lead to roughly 30-70 bcm ofdemand in the short term. In addition, the Commission will encourage diversificationof supply and will consider legislative measures to require such diversification overtime. Demand pooling will be supported by electronic tools, which will make theprocess secure, automated and user friendly.
 Optimised and transparent use of the import, storage and transmission gas infrastructure
maximising security of supply and replenishment of storage.
A mechanism and an IT tool will be put in place to improve the transparency ininfrastructure bookings i.e. remaining availability, secondary markets, rerouting andexisting bottlenecks. The exchange of information will be in line with antitrust rules.
 International outreach: Joined up international outreach will focus on concluding longterm cooperation frameworks with trusted partners via binding or non-binding
agreements that support the purchasing of gas and hydrogen and clean energy project
development, while fully using the collective strength of the Union.

As a next step, the Commission will consider developing a voluntary operational ‘jointpurchasing mechanism’ responsible for negotiating and contracting on behalf of participating
Member States of the aggregated gas demand and competitive release to the market. Such
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EU-US_LNG_2022_2.pdf (europa.eu)

4mechanism could take the form of a Joint Venture or a business-owned entity, leveraging thepower of the European market. Such a construct will be subject to review of its impact oncompetition.
The Platform will also work through Regional Task Forces, which will identify needs anddiversification of supply options and coordinate on contractual issues9. The Platform will set
up a dedicated work stream with Member States on joint purchasing of hydrogen10.
Industry expertise on the global energy market will be important for the success of the Platform.
An Advisory Group will inform the Platform on issues such as LNG trade, financing, hedging
and other elements along the value chain. The exchange of information will have to becompliant with antitrust rules.
In line with the conclusions of the European Council the EU Energy Platform is open for the
Energy Community Contracting Parties (Western Balkans, Ukraine, Moldova, Georgia). The
Platform should also benefit EU’s partners in its close neighbourhood, partners who arecommitted to the EU’s internal market rules and joint security of supply. The Platform will
work closely with the Energy Community Secretariat to assist the Contracting Parties to makethe most of the Platform.
The emergency synchronisation of the electricity grids of Ukraine and Moldova with Europe’s
grid mid-March shows the commitment to ensure Ukraine’s and Moldova’s interconnection
with the EU’s power grid. As soon as the necessary technical improvements are completed, it
will allow Member States in the region to purchase excess electricity from Ukraine, thus
compensating for some of the reduced gas imports.
With a full implementation of the REPowerEU plan, high prices, gas alternatives (sustainablebiomethane, renewable hydrogen), further deployment of renewables, and structural demandmeasures such as energy efficiency, EU gas demand is expected to decrease at a faster rate thanforeseen under Fit for 55. The EU will provide its international partners with long-term
perspectives for mutually beneficial cooperation by integrating hydrogen and renewable energy
development and trade, as well as cooperation on methane emission reduction strategies in thegas diversification efforts, as described in the External Energy Engagement Strategy11.
Diversification options are also important for Member States currently dependent on Russia
for nuclear fuel for their reactors serving either power generation12 or non-power uses13. Thisrequires working within the EU and with international partners to secure alternative sources ofuranium and boosting the conversion, enrichment and fuel fabrication capacities available inEurope or in EU’s global partners. In addition to diversifying external suppliers, continuing
domestic natural gas production for Member States where this is possible can contribute tostrengthen security of supply.

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On 5 May, the Commission and Bulgaria set up a first regional taskforce, as part of the EU's Energy Platform, incoordination with neighbours in the South East of Europe. Further Regional Task Forces, covering Central Eastern
Europe, North-West and the Baltics will be proposed soon. In this context, it is important that the biggest energy marketsof the EU, with access to diversification infrastructure such as LNG terminals, are active participants inthe diversification and security of supply efforts of the Platform.
This dedicated hydrogen purchasing work stream will operationalise the European Global Hydrogen Facility, drawing on
the experience of H2Global and of the Euratom Supply Agency, to be established under the EU Energy Platform.
EU external energy engagement in a changing world, JOIN(2022) 23, (18.05.2022)
Five Member States (Bulgaria, Czechia, Finland, Hungary, Slovakia) currently have VVER reactors operated on theirterritory, all fully reliant at present on fuel supplied by a Russian provider.
Medium Power Research Reactors (MPRRs), which include reactors in Czechia, Hungary, Poland, are characterised bytheir original Soviet design and are still dependent for fuel on the monopoly Russian manufacturer.

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3. Substituting fossil fuels and accelerating Europe’s clean energy transition

A massive speed-up and scale-up in renewable energy in power generation, industry,buildings and transport will accelerate our phasing out of Russian fossil fuels. It will also,
over time, lower electricity prices and reduce fossil fuel imports.
Boosting renewable energy
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Based on its modelling of impacts and feasibility14, the Commission is proposing toincrease the target in the Renewable Energy Directive to 45% by 2030, up from
40% in last year’s proposal. This would bring the total renewable energy generation
capacities to 1236 GW by 2030, in comparison to 1067 GW by 2030 envisaged underFit for 55 for 2030.
Solar photovoltaics (PV) is one of the fastest technologies to roll out. That is why theCommission sets the REPowerEU target of over 320 GW of solar photovoltaic
newly installed by 2025, over twice today’s level, and almost 600 GW by 2030. As
part of the increased ambition for solar, the Commission:presents the EU solar strategy15 ;introduces the European Solar Rooftop Initiative anchored around a legally binding
EU solar rooftop obligation for certain categories of buildings.

Wind energy, in particular offshore wind represents a significant future opportunity: resources
are stable, abundant and public acceptance is higher. Europe is the global leader in offshore
wind. To further strengthen the EU wind sector’s global competitiveness, and achieve the
REPowerEU ambition with fast wind energy deployment, supply chains need to bestrengthened and permitting drastically accelerated.
The European Union should aim at doubling the current deployment rate of individual heatpumps, resulting in a cumulative 10 million units over the next 5 years. Member States canaccelerate the deployment and integration of large-scale heat pumps, geothermal and solar
thermal energy in a cost-effective way by:

developing and modernising district heating systems which can replace fossil fuels inindividual heating;clean communal heating, especially in densely populated areas and cities;
exploiting industrial heat whenever available.

To strengthen the supply chains for solar, wind and heat pump technologies and make themmore sustainable, the Commission will:
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enhance the regulatory framework and ensure life-cycle sustainability, by tabling, inthe first quarter of 2023, ecodesign and energy labelling requirements for solar PVs,
and by revising existing requirements for heat pumps.

Commission Staff Working Document Implementing the REPowerEU Action Plan: Investment needs, Hydrogen
Accelerator and Biomethane Targets, accompanying this communication.
EU solar energy strategy, COM(2022) 221, (18.05.2022)6

support efforts from Member States to pool their public resources via potential
Important Projects of Common European Interest (IPCEI) focused on breakthroughtechnologies and innovation along the solar and wind energy and heat pumps value
chains.

To promote the development of electricity storage capacities, the Commission proposes toconsider storage assets as being in the overriding public interest and facilitate permitting fortheir deployment.
Accelerating hydrogen
Renewable hydrogen will be key to replace natural gas, coal and oil in hard-to-decarbonise
industries and transport. REPowerEU sets a target of 10 million tonnes of domestic renewablehydrogen production and 10 million tonnes of renewable hydrogen imports by 2030. The
Commission:
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calls upon the European Parliament and the Council to align the sub-targets forrenewable fuels of non-biological origin under the Renewable Energy Directive forindustry and transport with the REPowerEU ambition (75% for industry and 5% fortransport)16 and to rapidly conclude the revision of the Hydrogen and Gas Market
package;will top-up Horizon Europe investments on the Hydrogen Joint Undertaking (EUR 200
million) to double the number of Hydrogen Valleys;
publishes for public feedback two Delegated Acts on the definition and productionof renewable hydrogen;intends to complete the assessment of the first Important Projects of Common European
Interest on hydrogen by the summer;
calls on industry to accelerate the work on missing hydrogen standards, in particularfor hydrogen production, infrastructure and end-use appliances;
will regularly report, in close cooperation with the Member States, starting in 2025, onhydrogen uptake, and the use of renewable hydrogen in hard-to-abate appliances inindustry and transport.

Accelerated efforts are needed to deploy hydrogen infrastructure for producing, importing
and transporting 20 million tonnes of hydrogen by 2030. Cross-border hydrogen infrastructureis still in its infancy, but the basis for planning and development has already been set by the
inclusion of hydrogen infrastructure in the revised trans-European networks for energy. Total
investment needs for key hydrogen infrastructure categories are estimated to be in the range of
EUR 28 – 38 billion for EU-internal pipelines and 6 - 11 billion for storage.
To facilitate the import of up to 10 million tonnes of renewable hydrogen, the Commission
will support the development of three major hydrogen import corridors via the Mediterranean,
the North Sea area and, as soon as conditions allow, with Ukraine. Green Hydrogen
Partnerships will facilitate the imports of green hydrogen while supporting the decarbonisation

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Commission Staff Working Document Implementing the REPowerEU Action Plan: Investment needs, Hydrogen
Accelerator and Achieving the Bio-methane Targets, accompanying this communication.

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in the partner countries. Other forms of fossil-free hydrogen, notably nuclear-based, also playa role in substituting natural gas (see map).
To help achieve these targets, the Commission will:

map preliminary hydrogen infrastructure needs by March 2023, based on the TEN-E
Regulation, in a process involving Member States, national regulatory authorities,
ACER, ENTSOG, project promoters and other stakeholder;mobilise EU funding under CEF, Cohesion Policy and RRF;
set up a dedicated work stream on joint renewable hydrogen purchasing under the EU
Energy Platform.

Scaling up biomethane
Boosting sustainable biomethane production to 35 bcm by 2030 is a cost-efficient path toachieve our ambition to reduce imports of natural gas from Russia. To increase the capacity of
biogas production in the EU and promote its conversion into biomethane, the estimatedinvestment needs amount to EUR 37 billon euro over the period.
As outlined in the Biomethane Action Plan in the accompanying staff working document, theCommission proposes to address the main barriers to increased sustainable biomethane
production and use and facilitation of its integration into the EU internal gas market by:
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establishing an industrial biogas and bio-methane partnership to stimulate therenewable gases value chain;taking additional measures to encourage biogas producers to create energy
communities;
providing incentives for biogas upgrading into bio-methane;promoting the adaptation and adjustment of existing and the deployment of new
infrastructure for the transport of more bio-methane through the EU gas grid;addressing gaps in research, development and innovation;
facilitating access to finance, and mobilise EU funding under CEF, Cohesion Policy,
RRF and the Common Agricultural Policy.

The focus should be on sustainable production, ensuring that biomethane is produced fromorganic waste and forest and agricultural residues, to avoid impacts on land use and foodsecurity.
Bioenergy makes up 60% of the renewable energy in the EU. It is a domestically available andstable energy source but sustainable sourcing is key. Current estimates show a moderate but
steady increase of biomass use until 2030. Prioritizing use of non-recyclable biomass waste
and agricultural and forest residues will ensure a sustainable energy production that cancontribute to the REPowerEU objectives.
Reducing fossil consumption in hard-to-abate industrial and transport sectors
Replacing coal, oil and natural gas in industrial processes will not only reduce carbon
emissions, it will also strengthen industrial competitiveness by shielding industrial production
from volatile fossil fuel markets and support international technology leadership.

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Energy efficiency, fuel substitution, electrification, and an enhanced uptake of renewablehydrogen, biogas and biomethane by industry could save up to 35 bcm of natural gas by 2030
on top of what is foreseen under the Fit for 55 proposals. Production of non-metallic minerals,
cement, glass and ceramics, production of chemicals and refineries provide the biggest
opportunities for reducing fossil gas demand – almost 22 bcm.
There is also great potential for electrification of industry. Current technologies already enableindustrial companies to reduce their reliance on fossil fuels. Opportunities to adopt electric
technology will continue to expand as technologies improve and renewables are rolled out.
To support hydrogen uptake and electrification in industrial sectors, the Commission:will roll out carbon contracts for difference and dedicated REPowerEU windows underthe Innovation Fund to support a full switch of the existing hydrogen production inindustrial processes from natural gas to renewables and the transition to hydrogen-based
production processes in new industrial sectors, such as steel production17;
publishes guidance to Member States on renewable energy and power purchaseagreements18 (PPAs);
will, in cooperation with the EIB, develop a technical advisory facility under theInvestEU Advisory Hub to support PPA-financed renewable energy projects. To unlock
industrial investment, the Commission will double the funding available for the 2022
Large Scale Call of the Innovation Fund this autumn to around EUR 3 billion. A
specific REPowerEU window will support (1) innovative electrification and hydrogen
applications in industry, (2) innovative clean tech manufacturing (such as electrolysers
and fuel cells, innovative renewable equipment, energy storage or heat pumps forindustrial uses), and (3) mid-sized pilot projects for validating, testing and optimisinghighly innovative solutions.

In transport, electrification can be combined with of the use of fossil-free hydrogen to replacefossil fuels. To enhance energy savings and efficiencies in the transport sector and accelerate
the transition towards zero-emission vehicles, the Commission:will consider a legislative initiative to increase the share of zero emission vehicles inpublic and corporate car fleets above a certain size;
calls on the co-legislators to swiftly adopt the pending proposals on alternative fuels
and other transport related files supporting green mobility;
will adopt in 2023 a legislative package on greening freight transport;

Delivering REPowerEU – with skilled people, raw materials and a complete regulatory
framework
Achieving the REPowerEU goals will require diversifying the supply of renewable energy
equipment and of critical raw materials, reducing sectoral dependencies, overcoming supply
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Based on REPowerEU, the Commission expects that around 30% of EU primary steel production will be decarbonizedwith renewable hydrogen by 2030, [requiring 1.4 million tonnes of renewable hydrogen and investments of EUR [18-20]
bn to replace blast furnaces with direct reduced iron (DRI) processes fueled by renewable hydrogen.]Commission Recommendation on speeding up permit-granting procedures for renewable energy projects and facilitate
Power Purchase Agreements, C(2022) 3219, SWD(2022) 149, (18.05.2022).

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chain bottlenecks and expanding the EU’s clean energy technology manufacturing capacity.
While the EU is a global leader in electrolyser, wind and heat pump technologies, the EU solar
panels and heat pumps market has seen increasing imports from Asia over the last years.
For heat pumps, a doubling of the deployment rate should be matched by a fast ramp up of the
production of the necessary equipment, including, where necessary through facilitated accessto finance.
Beyond ensuring suppliers diversification, strengthening circular economy models must be apriority. Support for research and innovation, including through Horizon Europe, will be
provided to reduce materials consumption, enhance recyclability of renewable energy
equipment and substitute critical raw materials.
To enhance industry’s contribution to REPowerEU and reinforce its competitiveness, theCommission:will set up an EU Solar Industry Alliance;
will work with industry to scale up electrolyser manufacturing capacities, as laid out inthe Electrolyser Declaration19;
will intensify work on the supply of critical raw materials and prepare a legislative
proposal. The Commission will step up ongoing EU policies and actions (e.g.
implementation and negotiation of Free Trade Agreements, cooperation with likeminded partners, etc.) and reinforce the EU’s monitoring capacity and help secure thesupply of diverse critical raw materials. This initiative will aim to strengthen theEuropean value chain through the identification of mineral resources and of critical raw
materials projects in the European strategic interest, while ensuring a high level ofenvironmental protection, including projects that promote a circular economy andresource efficiency

Accelerating and amplifying the deployment of renewables and increasing energy efficiency
relies on a skilled workforce and strong supply chains to meet the increased demand for clean
technology and roll-out in the construction sector. The clean energy transition offers ample job
market opportunities and helps ensure reskilled jobs for transition sectors.
To address the skills shortages, the Commission:

encourages stakeholders in renewable energy production (solar, wind, geothermal,
biomass, heat pumps etc.) and permitting authorities to establish a large-scale skills
partnership under the Pact for Skills20;
will support skills through ERASMUS + and the Joint Undertaking on Clean Hydrogen,with the launch of a large project to develop skills for the hydrogen economy.

Speeding up permitting and innovation

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Electrolyser Summit Joint Declaration. Electrolyser manufacturers in Europe committed to a tenfold increase of theircapacity to manufacture electrolysers to 17.5 GW by 2025.
The Pact for Skills supports large-scale skills partnerships in different industrial ecosystems, including Energy Intensive
Industries, Construction and Renewable Energy. The Pact gathers and inspires commitments from individual companies,
training providers and social partners to upskill or reskill people of working age, such as developing skilled professionals
and the reskilling of gas boiler installers in new technologies such as heat pumps, solar panels, etc.

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Slow and complex permitting processes are a key obstacle to unleashing the renewables
revolution and for the competitiveness of the renewable energy industry. Obtaining a permit
can take up to 9 years for wind projects, and up to 4.5 years for ground-mounted solar projects.
Varying permitting times between Member States demonstrate that national rules andadministrative capacities complicate and slow down permitting.
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To help Member States exploit all possibilities for acceleration that exist within thelegislative framework, the Commission presents a Recommendation on
permitting21.

It proposes measures to streamline procedures at national level, addresses ambiguities in theapplication of EU legislation and sets out good practices in Member States. It recommends
participatory approaches that involve local and regional authorities and providing authorities
with the necessary resources so as to facilitate the timely realisation of locally adapted
investments.
To kick-start the implementation of the Recommendation, the Commission will
convene renewable energy experts with environmental assessment experts from
Member States on 13 June.

High Level Summits hosted by Member States, such as the North Sea Summit in Denmark,will enhance the case for investment in cross-border wind parks and renewable projects.
Member States should as a matter of priority implement the permitting-related Country
Specific Recommendations in the European Semester and already adopted Recovery and
Resilience Plans. Equally, the full and rapid transposition by all Member States of theRenewable Energy Directive22 is a matter of urgency to simplify permitting procedures.
In order to support an acceleration of permitting procedures for renewable energy
projects and related infrastructure, the Commission is amending its proposal on the
Renewable Energy Directive23 and asks the European Parliament and Council toensure a swift agreement as part of the Fit for 55 package.

The revised proposal operationalises the principle of renewable energy as an overriding
public interest, introduces the designation of ‘go-to’ areas24 and other ways to shorten andsimplify permitting while also minimising potential risks and negative impacts on theenvironment. It also provides for the possibility to create regulatory sandboxes to foster
innovation in the sector.
The Commission also calls on the Member States to speed up the transposition of the Electricity
Directive to effectively allow consumers to participate in energy markets (individually or via
21
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Commission Recommendation on speeding up permit-granting procedures for renewable energy projects and facilitate
Power Purchase Agreements, C(2022) 3219, SWD(2022) 149, (18.05.2022).
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of theuse of energy from renewable sources (recast).
Proposal for a Directive of the European Parliament and of the Council amending Directive (EU) 2018/2001 of theEuropean Parliament and of the Council as regards the promotion of energy from renewable sources, COM (2022)222,(18.5.2022)
24Renewables go-to area’ means a specific location, whether on land or sea, which has been designated by a Member
State as particularly suitable for the installation of plants for the production of energy from renewable sources, other thanbiomass combustion plants.

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energy communities or collective self-consumption schemes) to produce, self-consume, sell orshare renewable energy.
4. Smart investment
The Commission’s analysis indicates that REPowerEU entails additional investment of 210
billion euro between now and 2027, on top of what is needed to realise the objectives of the Fit
for 55 proposals. Such investment will pay off. Implementation of the Fit for 55 frameworkand the REPowerEU plan will save the EU EUR 80 billion in gas import expenditures, EUR
12 bn in oil import expenditures and EUR 1.7 bn in coal import expenditures per year by2030.
During the transition, the fast decoupling from Russian energy imports can lead to higher andmore volatile energy prices. Targeted measures are needed to minimize volatility, keep prices
in check and protect the individuals in or at risk of (energy) poverty in order to ensure a fairtransition for all25. The Commission calls upon the European Parliament and the Council toadopt its proposal for a Social Climate Fund to support vulnerable households and small
business in the transition.
4.1 European interconnection and infrastructure needs
The REPowerEU plan brings a significant change to the energy system in terms ofquantities and directions of energy flows. This is the time to implement many long pending
projects, with a particular focus on cross-border connections to build an integrated energy
market that secures supply in a spirit of solidarity.
The Trans-European energy networks (TEN-E) framework has helped establish a more
resilient European gas infrastructure based that enables more diversified supplies. Once theongoing Projects of common interest and Projects of mutual interests are implemented, all
Member States and Neighbouring countries will have access to at least three gas sources or to
the global liquefied natural gas (LNG) market. In 2022 alone, gas PCIs with a total additional
gas transmission capacity of 20 bcm/year have been or will be commissioned26. Very recently,
a number of key projects co-financed by the EU were completed or launched, such as the Gas
Interconnector Poland-Lithuania (GIPL)27 of key importance to the Baltic region and a new

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See for example the proposal for a Council Recommendation on ensuring a fair transition towards climate neutrality(COM(2021) 801 final).
In 2022 alone, PCIs with a total additional gas transmission capacity of 20 bcm/year have been or will be commissioned,
e.g. the gas interconnector between Poland and Lithuania (the GIPL pipeline), the Poland-Slovakia interconnector, theBaltic Pipe between Poland and Denmark, the Greece-Bulgaria pipeline (IGB). LNG terminals in Cyprus (2 bcm/year)
and Alexandroupolis Greece (5 bcm/year) are due to be operational in 2023. Moreover, several gas PCIs are expected tobe completed in the coming years which include several storage projects in South Eastern Europe (Greece, Romania,
Bulgaria) as well the LNG Gdansk in Poland (at least 6 bcm/year). Besides, the support of the expansion of the Southern
Gas Corridor to 20 bcm per year will play a major role to secure gas supply for South Eastern Europe (Greece and Italyat the beginning) and the Western Balkans.
Opened on 5 May, GIPL is a major EU project developed under the Baltic Energy Market Interconnection Plan (BEMIP).
The 508-km-long pipeline connected Estonia, Finland, Latvia, and Lithuania to the gas market of the EU. Of some EUR
500 million spent on the project, the EU contributed ca. EUR 300 million.

12liquefied natural gas terminal in Northern Greece that will help Europe and the Balkans becomeless reliant on Russian supplies28 .
The maps and project lists shown here are the result of analysis by the regional groups of theadditional needs strictly linked to REPowerEU. They complement the existing list of projectsof common interest, some of which, such as the Iberian interconnectors and connections forisland Member States, have been under preparation for many years. These projects should now
also be accelerated to complete the European infrastructure. The gas projects to be included in
the REPowerEU chapters of the Recovery and Resilience Plans should build on the analysis of
the needs currently represented on the maps below.
The regional assessment of additional gas infrastructure needs for REPowerEU shows that it
will be possible to fully compensate the equivalent of Russian gas imports by a combination ofdemand reduction, a ramp up of domestic production of biogas/biomethane and hydrogen, andlimited additions of gas infrastructure. The most important needs are linked to meet demand inCentral and Eastern Europe29, and in the northern part of Germany30, as well as thereinforcement of the Southern gas corridor. This limited additional infrastructure, as describedin annex 3, should solve the needs for the forthcoming decade, without leading to a lock-in of
fossil fuels and stranded assets that inhibit the long-term transition to a climate-neutral
economy.
Storage is key for enhancing the security of supply. Appropriate support, including financial,should be provided to those projects that aim at increasing the storage and withdrawal
capacities in order to ensure an increased level of preparedness and response to risks in the
security of gas supply. To import sufficient LNG and pipeline gas from other suppliers,
investments estimated at EUR 10bn by 2030 will be required for a sufficient level of gas
infrastructure, including LNG import terminals, pipelines, to connect underutilised LNG
import terminals and the EU network, and reverse flow capacities. Additional investments toconnect LNG import terminals in the Iberian Peninsula and the EU network through hydrogenready infrastructure may further contribute to diversify gas supply in the internal market andhelp tap into the long-term potential for renewable hydrogen. Also, a very limited investment
will be needed to ensure security of supply in Member States almost fully dependant on
pipeline oil from Russia.
Dependence on Russian fossil fuels also extends to crude oil and petroleum products. Whilefor the majority of cases the world market allows for quick effective replacement, someMember States are more reliant on Russian pipe oil. The stop of supply fromthe Druzhba pipeline, which delivers crude oil to Europe directly from central Russia, will
increase pressure on alternative supply routes, namely ports (such as Gdansk, Rostock,
Trieste or Omisalj) and alternative pipeline infrastructure, currently not prepared to handle
such additional pressure, that serves the same regions.

28

29

30

The LNG facility in Alexandropoulis (a floating storage and regasification unit) is set to be completed in the end of 2023
and will have a capacity of 153,500 cubic metres, with a yearly potential throughput of 5.5 billion; the budget is ca EUR
364 mn with EUR 167 mn from the 2014-2020 cohesion policy.
Of great importance for the security of supply in Central and Eastern Europe are two gas corridors: the Trans-Balkan
Corridor (Turkey-Bulgaria-Romania) and the Vertical Corridor (Greece-Bulgaria interconnector, Romania-Bulgariainterconnector and BRUA) which will facilitate the supply of gas from third countries in the region.
See indicative projects in Annex 3.

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In this context, very limited and targeted investments to ensure the security of oil is needed.
Projects building on and expanding the capacity of the existing infrastructure and tacklingexisting bottlenecks (namely in the Transalpine (TAL), Adria or SPSE oil pipelines) are key toensure viable alternatives to the most affected Member States. The establishment of alternative
supply routes must also be accompanied by targeted investments in the reconfiguration andupgrading of petroleum product refineries, as replacing Urals crude oilby alternative oil grades entails technological changes. The total investment needs to ensure
the security of oil supply is expected to amount to up to EUR 1.5 -2bn.
An additional EUR 29 billion of additional investments are needed in the power grid by2030, to make it fit for increased use and production of electricity. All relevant projects are
already included in the 5th PCI list31. The accelerated implementation of electricity PCIs is
crucial for an interconnected system with an increased share of renewable energy sources. The
current high electricity prices in the Iberian Peninsula highlight the importance of improving
cross-border electricity interconnections as a cost-effective way to ensure secure and affordable
electricity supplies. The Commission will continue to support and encourage the Spanish andFrench authorities for accelerating the implementation of the three existing projects of common
interest through the High Level Group South West Europe aiming at increasing theinterconnection capacity between the Iberian Peninsula and France. The EU has already taken
action for the synchronisation of the Baltic States' electricity networks with the continental
European network. Once completed, no later than 2025, neither the electricity trade nor system
operation can be used to threaten the energy security of the region.
Energy storage plays a significant role in ensuring flexibility and security of supply in theenergy system by facilitating the integration of renewable generation, supporting the grid, andshifting energy to the time when it is most needed. Ultimately, energy storage reduces the useof gas power plants in the energy system.
The Commission will also encourage the swift development of crucial offshore grids and crossborder hydrogen infrastructure.

European map of infrastructure for gas – PCIs and additional projects identified through
REPowerEU, including hydrogen corridors

31

https://ec.europa.eu/energy/sites/default/files/fifth_pci_list_19_november_2021_annex.pdf

14European infrastructure map for electricity

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4.2 National reforms and investments
While most of the targets and objectives are European and require a strong coordination,
implementation of many of the measures remain with Member States and require targetedreforms and investments.
The Recovery and Resilience Plans (RRPs) have proven highly suitable to implement urgent
priorities in a joint EU framework, based on needs by Member States and with a strong resultsorientation. They are already providing a set of ambitious reforms and investments to deliveron the twin transition. Their milestones and targets are more valid than ever.
The Commission invites Member States to add to their existing RRPs a dedicated chapter withnew actions to deliver on the REPowerEU objectives of diversifying energy supplies andreducing dependence on fossil fuels. Technical support to Member States is available under theTechnical Support Instrument32 for that purpose. Cross-border investments are essential tostrengthen interconnection and ensure the security of energy of supply for the Single Market.
When assessing the dedicated RepowerEU chapters, the Commission will take its contribution
towards the security of supply for the Union as a whole into account. The 2022 countryspecific recommendations will guide the new RRP chapters. The Commission issued together
with this communication tailored recommendations for all Member States on energy policy inline with the REPowerEU objectives.
The RRPs should ensure complementarity between measures funded under the RRF andactions supported via other national or EU funds. In particular, synergies must be increased
32

Technical Support Instrument: 2022 country factsheets | European Commission (europa.eu)

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between cohesion policy, in particular the European Regional Development Fund (ERDF), theEuropean Social Fund+ (ESF+), the second pillar of the Common Agriculture Policy (CAP),
Connecting Europe Facility (CEF) and the REPowerEU chapters in the RRPs. For example forgas, mature projects for grids, storage or LNG located in one Member State but having
European importance can be included in the RRF REPowerEU chapter. RRPs could also for
example support energy infrastructure projects selected in TEN-E regional groups for theircommon interest because they link Member States' energy networks, connect regions currently
isolated from European energy markets, strengthen existing cross-border interconnections,help integrate renewable energy, and respond to market integration, competitiveness andsecurity of supply objectives. This allows freeing CEF energy funds for interconnectors inelectricity, off-shore, hydrogen and other infrastructure projects of common interest that
require cross-border planning and regional cooperation for their implementation as provided
under the TEN-E policy.
The RRPs provide for a fast and effective way to frontload investments focused on
REPowerEU needs, combined with accompanying reforms to maximise their impact. As the
REPowerEU chapter and cohesion policy funds both support the green energy transition, inenergy efficiency and renewable energy investments can be supported under both. In view ofenhancing synergies between these policies, Member States have the possibility to plan theirinvestments over the lifetime of the programming period in a coordinated manner, taking into
account the available funding and implementation timelines.
4.3 Financing
To mobilise finance for covering the short term REPowerEU investment needs, theCommission proposes a targeted and swift amendment of the Recovery and Facility
Regulation. The amendment foresees allocating additional funding from the auctioning ofallowances of the Emissions Trading System (‘ETS’), in a limited amount. It also proposes that
Member States benefit from a higher flexibility to transfer resources allocated to them bothunder the Common Provisions Regulation (EU) 2021/1060) and the Regulation on CAP
strategic plans (EU) 2021/2115). These grants will complement the remaining EUR 225 billion
of loans under the RRF, resulting in a total amount close to EUR 300 billion. It is proposedthat if part of the remaining EUR 225 billion of loans under the RRF is not requested by themember States currently entitled to them within 30 days after the entry into force of theamended RRF Regulation, these resources will be made available to other MS.
Member States will have the possibility to transfer up to 12.5% of their allocation under thecohesion policy to the RRF by adding a 7.5% transfer possibility for REPowerEU objectives
based on demonstrable needs and provided that Member States have used the already available
5% transfer possibility. This new transfer possibility will allow Member States to include in
their RRPs new investments and reforms for that contribute to a rapid reduction of fossil fuelimports from Russia. Such a transfer possibility is justified by the urgent timeline and natureof some the investments needed.
In addition, Member States will have the possibility to transfer up to 12.5% of their allocation
under the European Agricultural Fund for Rural Development to the Recovery and Resilience
Facility. Delivering part of the Common Agricultural Policy financing under the Recovery and
Resilience Facility speed up implementation of relevant projects, allowing farmers to receive

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the necessary financial support to reduce the use of synthetic fertilizers and increase theproduction of sustainable biomethane or renewable energy.
The process for undertaking voluntary transfers by Member States of cohesion policy funds
and CAP funds to the REPowerEU chapters of the recovery and resilience plans has been
designed to ensure a swift adoption process, and should not delay the adoption andimplementation of the strategic plans and programmes.
Above all, it is important that Member States engage in a wide consultation process during the
preparation of their REPowerEU chapters, in particular with local and regional authorities,
social partners as well as stakeholders from the agricultural sector, to ensure broad ownershipthat will be key for the successful implementation of the measures.
Cohesion policy funds with their strong record of supporting energy-related investments willcontinue to complement and strengthen the REPowerEU and European Green Deal objectives.
Under the current MFF, cohesion policy will support decarbonisation and green transition
projects with up to EUR 100 billion. To ensure swift disbursement, the Commission will put
forward a flexible instrument to help member States mobilise private resources and intends toadopt by the end of 2022 a delegated act to speed up the design and reimbursements of energy
efficiency projects and renewables projects through standard reimbursement schemes incohesion policy. The Commission will also work with Member States in promoting thedevelopment of regional and local energy agencies as single entry point for energy projects.
State aid rules fully apply to the reforms and investments included into the REPowerEU
chapters. It is the responsibility of each Member State to ensure that such measures comply
with the EU State aid rules and follow the applicable State aid procedures. In light of theunprecedented urgency to reduce dependence on Russian fossil fuels, the Commission will
look into ways to facilitate State aid control for REPowerEU measures while limiting
distortions to competition. In particular, the Commission will provide guidance on how
measures can be designed in line with State aid rules and fast track decisions once it hascomplete information. The Commission will also assist Member States in designing measures
which can be exempted from notification under the General Block Exemption Regulation.
Finally, it will keep the Temporary Crisis Framework for State aid under constant review toensure that it is apt for enabling Member States to address the effects of the current geopoliticalsituation, including in the field of energy, and it will continue ensuring that the State aid
framework is generally fit-for-purpose.
The Connecting Europe Facility –Energy (CEF-E) will support projects of common interest(PCIs) not implemented by the market or not implemented otherwise within the timeframe
needed to deliver on the REPowerEU objectives. The Commission launches together withthis communication a new CEF Energy call for proposals for Projects of Common
Interest (PCIs) with a total estimated budget of around EUR 800 million. Successful projects
will be selected in the second half of 2022 to support the most urgent infrastructure projects
needed for realising the REPowerEU priorities. In early 2023, the Commission will launchanother CEF Energy call for proposals for PCIs for projects to apply that may not be ready forthis year’s call.
Member States can consider taxation measures to support REPowerEU objectives so as toincentivise energy savings and reduce fossil fuels consumption. Member States are encouraged18

to consider additional tax measures such as reductions and exemptions from vehicle taxation
for both the purchase and use of electric and hydrogen vehicles, tax deductions linked to energy
savings and the phase-out of environmentally harmful subsidies. The Commission’s pending
proposal for a revision of the Energy Taxation Directive (ETD), contributes to the objectivesof REPowerEU by setting price signals to reduce consumption of fossil fuels and save energy
and the Commission calls on Member States to swiftly reach an agreement.
The InvestEU Programme will mobilize private finance to support a wide range ofinvestments that contribute to achieving the REPowerEU’s policy goals, by sharing risks with
implementing partners. The Commission will work closely and in a Team Europe approachwith the EIB Group, other implementing partners of the InvestEU Programme and EU Member
States to accelerate lending, blending and advisory products for renewables, energy efficiency
and electricity networks.
To enable the Innovation Fund to cover 100% of the relevant costs in the case of competitive
bidding, the European Parliament and the Council should swiftly examine the proposed
amendment to the ETS Directive for the Innovation Fund, after which the Commission willswiftly adopt the necessary amendment to the Delegated Act establishing the Innovation Fund.
5. Reinforcing preparedness
Europe must be ready and prepared for a severe supply disruption. While the risk for unserved
gas demand for this summer will be limited, there could be a risk that, without further actionin the coming months, storages will not be sufficiently filled for next winter.
Together with the swift adoption of the storage regulation in view of starting implementationof refilling storage levels this summer, the Commission calls on Member States to:








pre-emptively implement the EU Save Energy Communication. The gas saved in
the short term can be used notably to refill underground storage ahead of the next
winter;update their contingency plans, taking into account the recommendations containedin the Commission’s preparedness review. The updated contingency plans should
identify the essential customers which play a key role for critical supply chains in theUnion;
ask transmission system operators to accelerate the technical measures, which canincrease the reverse flow capacities from west to east by the next winter, including
regarding the technical requirement concerning the composition of gas;conclude the outstanding bilateral solidarity arrangements between neighbouring
countries.

The existing EU legal framework already foresees that in case of extreme crisis Member States
can request their neighbouring Member States solidarity measures. Solidarity measures aremeant as last resort in the event of an extreme gas shortage to ensure supply to households,
district heating systems and basic social facilities in the affected country.

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The Commission will issue guidance on the prioritisation criteria of non-protectedcustomers, in particular of industry. The guidance will focus, on the one hand, on theidentification of national and cross-border value chains of key and critical importance which,
if disrupted, could negatively impact on security, food, health and safety at European and global
level. It should also assess the impact on the competitiveness of the different territories. The
Commission will also facilitate setting up a coordinated EU demand reduction plan with preemptive voluntary curtailment measures which should be ready for activation before an actual
emergency arises. This plan would include voluntary market-based measures to reduce theconsumption of undertakings and thus guarantee that supplies to protected customers areprioritised. In addition, the Commission is reviewing Member States’ Risk Preparedness Plans
in the electricity sector to minimize the impact of potential gas disruptions on electricity
generation.
Conclusions
The time to reduce Europe’s strategic energy dependence is now. REPowerEU accelerates
diversification and more renewable gases, frontloads energy savings and electrification withthe potential to deliver as soon as possible the equivalent of the fossil fuels Europe currently
imports from Russia every year. It does this with coordinated planning, in the joint interest andwith strong European solidarity.
There is a double urgency to reduce Europe’s energy dependence: the climate crisis, severelycompounded by Russia’s aggression against Ukraine, and EU’s dependence on fossil fuels,
which Russia uses as an economic and political weapon.
The green transformation of Europe’s energy system will strengthen economic growth,
reinforce its industrial leadership, and put Europe on a path towards climate neutrality by 2050.
The European Commission calls on leaders, Member States, regional and local authorities, andindeed every citizen and business, to reduce Europe’s energy dependence from Russia throughthe implementation of this REPowerEU plan.

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