Policy support, process, network; preparatory phase; planned duration: 2022-2024 (any beyond if necessary)

Submitted by / EUSDR Priority Area(s): PA 2 Sustainable Energy

The Russian gas import of many EUSDR countries is well above 60%, which makes this part of Europe even more exposed than the EU average. The ongoing Russian invasion of Ukraine and the ongoing and foreseen energy-related sanctions raise the security of supply concerns as never before. To address this challenge, EUSDR PA 2 has initiated several actions, such as:

• It commissioned a study (subcontractor: Regional Centre for Energy Policy Research- REKK) on how to reduce gas import independence in the Danube Region (to be completed by November 2022). The preparation of this study is being carried out by strong collaboration with the Steering Group members and gas experts of the EUSDR countries.
• Together with REKK and Central European Policy Studies (CEPS) PA 2 is organising a session in the frame of the EU Sustainable Energy Week (EUSEW) on 19 September 2022. The session will discuss future potential pathways for reducing the Danube Region’s dependence on the Russian gas import, while still adhering to the European Green Deal. It will present proposed short-, mid- and long term actions on how to diversify the energy supply of the region’s countries, accelerate the use of the untapped renewable and other alternative energy sources. The session will combine keynotes and discussion of natural gas related high level policy options, economics of potential sectoral measures and ground implementation experiences.
• Based on the outcomes of the study and the results of widespread international discussion expected at the EUSEW conference, policy briefs and other follow up activities are planned for 2023 and beyond.

Objectives

Europe’s sustainable energy policy has been dramatically impacted by Russia’s military invasion of Ukraine and its consequences on the European energy systems. Rapid responses are being formulated (REPowerEU, IEA 10 point plan, a number of high-level policy papers and studies) which aims to reduce the EU’s gas imports from Russia by nearly two thirds by the end of 2022, and to make Europe independent from all Russian fossil fuels well before 2030. These documents mark out the main areas of intervention to pave the way for an accelerated clean energy transition and enhanced market resilience, nevertheless details obviously need to be elaborated. European countries have great differences in their energy systems, national resources, infrastructures, economic development, etc. that determine their responses to these new challenges. This is even more relevant for the Danube Region, where regional disparities are huge and vulnerable consumers need to be protected in numerous provinces against volatile energy prices.

Different activities within this Flagship aim to provide a comprehensive assessment of the gas markets of the EUSDR countries, focussing on their vulnerability related to Russian gas import dependency. The study and the workshop aim to outline different options for the countries how to reduce their gas import and replace them with domestic fossil, or preferably renewable energy resources.

Need and (expected) impact

The ongoing war of aggression on Ukraine has serious impacts on the security of energy supply, especially on those countries (most of the EUSDR countries belong to this category) that heavily depend on Russian gas import. Therefore it is of utmost importance to deliver different scenarios, how these countries can diversify and secure their own energy supplies. The outcomes of the study and the results of the workshop discussion will highlight future potential pathways for reducing the Danube Region’s dependence on the Russian gas import while still adhering to the European Green Deal. It will also present proposed short-, mid- and long term actions on how to diversify the energy supply of the region’s countries, accelerate the use of the untapped renewable and other alternative energy sources, and also present some good practices. The results will provide insights to the policy, regulatory, economic and implementation aspects of the green energy transition to stop EU’s, and especially the central and east European regions’ reliance on fossil gas import from Russia and propose concrete steps with modelled cost estimates and present showcases of decarbonised and efficient heating alternatives.

Macro-regional dimension

All EUSDR countries are cooperating and the expected impacts are relevant to all cooperating countries.

Stakeholders involved

Policy makers, regulators, industry representatives, system operators at EU, national and regional levels, as well as the wider public, as vulnerable consumers are the suffering targets of this geopolitical crisis.
Budget and Funding: est. EUR 10.000/year (source: PAC projects)

Further information & Contact

Ms Annamária Nádor PAC, email: annamaria.nador@mfa.gov.hu