The EU intends to more than double its gas reserves by next winter by providing subsidies to reduce dependence on Russian supplies.
The European Commission’s draft proposal, obtained by the Financial Times, would set an 80% target storage capacity will be filled on September 30, up from 29% now.
Brussels proposes eliminating transmission fees for any gas in store, doubling the current 50% discount and allowing the government to pay companies to keep it.
The paper, which is expected to be approved on Tuesday, proposes to introduce contracts for difference, which would guarantee a minimum price for gas should its value drop during storage. , but other grants can be used.
Politicians have accused Russia cuts gas supply intentionally drives up prices, with a 170% increase from 2021. Gas reserves will allow countries to make up the shortfall. Russia accounts for 39% of EU gas supplies and the bloc has so far ignored calls for an embargo after Invasion of Ukraine.
Gazprom, the Russian oil and gas company, also has influence over nearly a third of the total gas storage in Germany, Austria and the Netherlands.
Kadri Simson, the energy commissioner, is also considering setting a mandatory storage level each year.
The article suggests that countries impose wind taxes on energy suppliers to offset the high costs for customers. But such measures can only last until June 30 and are not allowed retroactively.
Brussels also wants to deploy renewable energy faster. Under current proposals to cut carbon emissions, gas demand would fall by 23% by 2030.
Given the high gas prices, concerted action could further reduce EU dependence, which could change before adoption, the article said.
It urges faster planning processes and more investment. Countries with strong revenue from the sale of carbon permits according to Emissions trading plan. Revenue is 30 billion euros in 2021, double the previous year due to high prices.
“These revenues can be invested in accelerating the deployment of renewable energy,” the article said. It adds that nearly a quarter of solar projects have been postponed or canceled by 2021 because of higher material and transportation costs.
Other ideas include a “hydrogen accelerator” that would increase production and build infrastructure to transport compressed air as an alternative low-carbon fuel and sourcing more liquefied natural gas than.
Agricultural subsidies should be used to finance biogas facilities, which convert manure and other waste products into combustible gas.
Addressing the European parliament on Thursday, Simson said the EU must “support energy resilience, diversification and transition. It is clear that we cannot afford to give a third country the power to destabilize our energy markets or affect our energy choices.”
