Will REPowerEU accelerate the energy transition? Report

Insight 23 May 2022

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Report summary

The European Commission's REPowerEU plan aims to rapidly reduce reliance on Russian energy imports, without derailing net zero ambitions. Renewable generation targets call for a 15% increase over the already ambitious Fit-for-55 plan. With hydrogen requiring an even bigger leap. Phasing out imports of Russian coal and oil is already within sight, but gas is a much more difficult proposition. Incremental LNG imports – near- and long-term – will play a much bigger role than piped gas alternatives. All of the targets laid out in the REPowerEU plan are a stretch. Member states must act quickly to implement the measures with targeted policies and funding. Doing so will put Europe in a better position to deliver against its net zero targets.

Executive Summary
Accelerating clean energy supplies (renewable power)
- Solar targets are difficult but achievable – explicit timelines on permitting are a step forward
- Wind – the spotlight on permitting and interconnection issues brings hopes targets can be met
- Energy Storage – the missing piece?
Accelerating clean energy supplies (renewable gases)
- Hydrogen – unlocking sufficient demand by 2030 presents the biggest challenge
- Biomethane – an upgrade too far
Diversifying energy supplies
- The EU Energy Platform will struggle to underpin material LNG volumes but will support hydrogen trade
- EU External Strategy
Energy savings and energy efficiency
- Tougher targets – but, this time, it’s different
Conclusion