EC hails gas demand reduction efforts as part of REPowerEU stocktake

The European Commission has praised efforts by EU member states to reduce gas demand in a May 16 report taking stock of its landmark REPowerEU initiative.

The EC adopted the REPowerEU plan in May 2022 following Russia's invasion of Ukraine, in which it laid out plans to reduce dependence on Russian energy through a variety of measures, including gas demand reductions, improved ties with non-Russian suppliers, and a rapid build-out of renewable energy.

In its latest REPowerEU-related proposals, the EC on May 6 presented a roadmap designed to fully eliminate Russian gas imports into the EU by the end of 2027.

"Marking three years since the launch of the REPowerEU plan, the Commission takes stock of progress towards cleaner, more autonomous and affordable energy," it said May 16.

"The plan set out measures to phase out Russian fossil fuels, while speeding up the clean energy transition with more emphasis on renewable energy, energy efficiency and saving energy."

Gas demand

In response to the energy crisis triggered by Russia's invasion of Ukraine, the EU adopted a gas demand reduction regulation as an emergency measure in 2022, setting voluntary targets to reduce gas demand by 15% compared with the average demand between 2017 and 2021.

"The EU exceeded its voluntary target and EU gas demand continues to be reduced even after the regulation's expiry in March 2024," the EC said.

"This voluntary demand reduction has been instrumental in phasing out Russian gas in line with the REPowerEU objectives."

Between August 2022 and January 2025, the EU reduced its gas demand by 17%, equivalent to 70 Bcm/year of gas.

"Demand reduction significantly enhanced energy security ahead of the last three winters by contributing to refilling gas storage," it said.

Russian gas

Imports of Russian gas into the EU dropped from 150 Bcm in 2021 to 52 Bcm in 2024, with the share of Russian gas imports falling from 45% to 19%, the EC said.

"Projections point to a further fall to 13% in 2025," it said, following the end of Russian gas supplies to Europe via Ukraine at the start of this year.

"The good preparation of the EU and EU countries allowed for the transit to end, and further phase out Russian gas imports, without significant impact on the security of energy and gas prices," the EC said.

"These are significant achievements, setting the EU on track to phase out imports of Russian fossil fuels as soon as possible."

European gas prices rose in early 2025 on low storage and the cessation of Ukrainian transit, but have since fallen back toward pre-crisis levels.

Platts, part of S&P Global Commodity Insights, assessed the benchmark Dutch TTF month-ahead price at Eur35.17/MWh on May 15, down from a recent peak of Eur58.14/MWh on Feb. 10.

While the EC hailed efforts to reduce piped Russian gas imports, a large part of the fall was caused by Russia itself, which suspended deliveries via Nord Stream in September 2022 and sharply cut supplies via Ukraine.

The EC said it had also continued to strengthen international partnerships and approach non-Russian suppliers to secure more reliable imports of gas.

Partners include Norway, the US, North Africa and Qatar, it said.

Renewables expansion

The EC said that the EC continues to roll out renewable energy, with almost half of electricity in the EU now coming from renewable sources.

It cited industry estimates that installed wind and solar capacity has increased by 58% cumulatively between 2021 and 2024, saving around 38 Bcm of gas over three years.

"For 2025, it could further increase by 16%, replacing around 16 additional Bcm of gas," it said.

REPowerEU put the accelerated production of clean energy at the center of efforts to enhance the EU's energy security and ensure the decarbonization of our economy, the EC said.

This includes renewable gas.

"Biomethane and biogas production is increasing at an impressive pace, contributing to achieving the REPowerEU target of producing 35 Bcm/year by 2030," it said.

"Industry reports that biomethane production alone grew to 4.9 Bcm in 2023 with an installed capacity of 6.4 Bcm/year by the first quarter of 2024."