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ECONOMY

Wed 15 Mar 2023 9:53 pm - Jerusalem Time

A European plan to reduce gas consumption by 15% in order to liberate itself from Russia

Brussels - (AFP) - Brussels on Wednesday proposed a plan aimed at reducing European gas demand by 15 percent to overcome the decline in Russian supplies, by reducing the heating of some buildings, delaying the closure of nuclear power plants, encouraging companies to reduce their needs, and other measures. .



In order to prepare for the winter, the European Commission has prepared a set of measures that will enable the 27 European Union countries to face a possible disruption of Russian supplies, which until last year accounted for 40 percent of its imports.


European Commission President Ursula von der Leyen said, " Russia uses gas as a weapon. In the event of a complete shutdown, Europe must be ready."


The plan, which still needs to be discussed by member states, states that each country will have to "do everything in its power" to reduce its gas consumption, between August 2022 and March 2023, by at least 15 percent compared to the average of the past five years. in the same period. Countries will have to submit detailed road maps by the end of September to achieve this.


The Nord Stream gas pipeline, through which a third of Russian gas shipments to the European Union pass, was halted on July 11 for routine maintenance, which is scheduled to end Thursday. However, the Europeans fear that Moscow will not pump gas again, especially since it has reduced its shipments through the aforementioned pipeline by 60 percent in the past weeks.


Brussels is seeking to activate a warning mechanism for the twenty-seven countries, which makes it possible to set “binding targets for reducing demand” in the event that there is “a significant risk of a serious shortage or an exceptional increase in demand.”


In the spring, the European Commission presented a strategy for liberation from Russian hydrocarbons, by imposing a minimum level for filling gas reserves, diversifying suppliers, and developing renewable energies.

- Act now -
Commission Vice-President Frans Timmermans called on countries to act now, so that "we don't have to do it in an emergency and in more catastrophic circumstances".


Europeans fear a tough winter despite increased imports from Norway, Azerbaijan and Algeria, and US LNG shipments tripling since March.


Von der Leyen estimated the possibility of reducing annual gas consumption in the European Union by about 45 billion cubic meters, of which about 11 billion cubic meters is through reducing heating or air conditioning in buildings. In 2020, Russia supplied about 153 billion cubic meters to the twenty-seven countries.



Brussels is asking countries to adopt binding measures to reduce heating and air conditioning in public and commercial buildings, "where this is technically feasible".


It also encourages the use of alternative sources of heating in cities. It recommends media campaigns to urge families to lower the thermostat by one degree this winter, which will save "up to 10 billion cubic meters of gas annually."


However, “protected customers” (households, social services, hospitals, small and medium enterprises, to which supplies are guaranteed) represent less than 37 percent of total gas consumption. Therefore, the Commission aims to consume electricity production plants and industries.


Realizing that "renewable energy must be given priority," Brussels notes in its plan that "a transition to coal, oil or nuclear energy may be necessary for a temporary period." For this purpose, it asks countries wishing to give up civilian nuclear energy to postpone their projects to close down nuclear plants.


For industries, the plan suggests alternative solutions, and proposes "compensation" for companies in exchange for reduced consumption.


And for sectors that do not have enough room to dispense with gas, the European Commission considers that reducing demand gradually, rather than waiting for a sudden interruption, will be "much less expensive."


The Commission's goal is to avoid the closure of factories and the loss of machinery that could be broken due to a complete stop. It also wants to maintain the production of basic commodities (chemicals, medicines, etc.).


However, the European employers' organization Business Europe warned that production cuts imposed on companies could have "catastrophic economic effects and an often irreversible effect," adding that it should "remain (cutting production) as a last resort."
The 27 countries may endorse the commission's plan at a meeting of energy ministers on July 26 in Brussels.

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A European plan to reduce gas consumption by 15% in order to liberate itself from Russia

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