Latest news with #AffordableEnergyActionPlan
Euronews
26-02-2025
- Business
- Euronews
EU could save €2.5 trillion on energy bills by 2040
47 million people in EU Member States live in energy poverty. This means they have no money to heat their homes. Plus, businesses are complaining that high energy prices make them much less competitive with companies in the US and China. But, the EU Commissioner for Energy and Housing told Euronews that a plan has been put together to save a total of €2.5 trillion over the next 15 years: "Renewable energy is much cheaper than the fossil alternative. So that will bring the prices down. Also, if we are better connected in Europe, our electricity system, so we are more grids, we are more interconnectors, that will bring down the prices as well. And finally, the gas market, they need to be better controlled so that we make sure that they don't have profits that are too high" explained Dan Jørgensen. Recommendations to member states on taxes and network charges The plan includes administrative measures such as further reducing the time needed to obtain permits for renewable energy, promoting energy efficiency solutions and reviewing the components of residential energy bills, namely network and system costs, taxes and levies and supply costs. A Commission will make recommendations to the member states to lower national taxes on electricity and enable consumers to switch suppliers more easily towards cheaper energy offers, among others. Member states have a key role to play in lowering electricity bills in the short term. The Commission will offer them support, especially in the areas of taxation and network charges, where immediate action can be taken. The Commission will issue a recommendation to member states on how to lower electricity taxation levels effectively and how to best take advantage of existing possibilities to decrease taxes for energy-intensive industries and households. The Commissioner says the proposed measures will have an impact on bills as soon as this year: "With these measures, we will save in Europe around €45 billion already the next year. So already from now and the year ahead, this will then of course increase. So the savings will be bigger. And in 2030 we will save more than €130 billion a year. So this is enormous amounts. Obviously this will also mean not only better competitiveness for our industries, but also for our households," explained Jørgensen. Energy security can still be improved The Commissioner says that this is also linked to security. Europe is still buying too much Russian gas, and since the war broke out, European countries have imported enough gas from Russia to buy 2,400 F35 fighter jets. However, as Ursula von der Leyen, President of the European Commission, said in a recent statement: "We're driving energy prices down and competitiveness up. We have already significantly reduced energy prices in Europe by doubling down on renewables. Now, we are going a step further with the Affordable Energy Action Plan as part of our Clean Industrial Deal. With it, we will achieve more predictable prices, stronger connections across Europe, and increased energy offtake. We will systematically remove remaining obstacles so that we can build a true Energy Union."
Reuters
26-02-2025
- Business
- Reuters
What is in the EU's Affordable Energy Action Plan?
BRUSSELS, Feb 26 (Reuters) - The European Commission announced an Affordable Energy Action Plan on Wednesday to lower electricity bills, help roll out clean energy sources and diversify suppliers. The plan is part of its Clean Industrial Deal that aims to boost clean tech and help energy-intensive industries stay competitive globally. Here are some of the main elements: ELECTRICITY * Push member states to finish revision of Energy Taxation Directive and cut taxes * Decouple retail power prices and volatile natural gas with guarantees from the European Investment Bank for long-term renewable power contracts * Adopt new rules to develop European forward markets and increase hedging options, which are lacking for renewable energy * Push countries to adapt and speed up permitting regimes by mid-2025 for renewable power projects that can take a decade to complete * The Commission will propose a Grid Package in 2026 GAS * Propose to aggregate liquefied natural gas demand for EU companies to secure long-term deals, potentially by investing in infrastructure abroad * Gas Market Task Force to ensure well-functioning market to conclude by the fourth quarter 2025 * Crack down on manipulation with cooperation on enforcement and data sharing between EU energy agency ACER and EU financial regulator ESMA ENERGY UNION * Electrification Action Plan in the first quarter, 2026, to help decarbonise industry, transport and heating * Roadmap to digitise and use AI in the energy sector * Tackle investment gap with incentives for private capital with a Clean Energy Investment Strategy * Boost innovation through various action plans and a study of nuclear financing needs to potentially build out small modular reactors
Reuters
26-02-2025
- Business
- Reuters
EU Commission proposes to aggregate EU LNG demand with reliable suppliers
BRUSSELS, Feb 26 (Reuters) - The European Commission unveiled on Wednesday its Affordable Energy Action Plan, which aims to cut industrial and household bills by tens of billions of euros and speed up the decarbonisation of power markets. As previously reported by Reuters, the Commission aims to save Europeans 45 billion euros ($47.25 billion) in 2025 and 260 billion euros ($273.03 billion) by 2040. The Commission said it will look at investing in liquefied natural gas (LNG) projects abroad as part of plans to "immediately engage" with reliable suppliers to try to lower energy prices. Further, it will look to aggregate LNG demand from European companies to help them secure long-term deals as a shelter from short-term volatility. In addition, the Commission will recommend that member states lower electricity taxes as well as increase scrutiny of gas markets. ($1 = 0.9523 euros)
