European Commission Grants Energy Suppliers Additional Flexibility on Methane Requirements to Lower Energy Costs

Brussels, Oct 6 (KUNA) -- The European Commission announced on Tuesday that it is granting energy exporters to the European Union additional flexibility for one year regarding methane requirements, as part of a package of measures aimed at lowering energy costs and ensuring supply stability amid the current global crisis.

Speaking at a plenary session of the European Parliament in preparation for the European Council summit scheduled for next week, European Commission President Ursula von der Leyen said the EU would launch a strategic dialogue on European refineries to reduce costs and ensure the availability of necessary supplies, including defense needs.

Von der Leyen added that the Commission would also establish a new working group to aggregate energy demand, enabling a shift from merely matching buyers and sellers to consolidating demand and executing joint purchases.

She noted that the Group of Seven (G7) countries agreed last week to release 100 million barrels of diesel and crude oil to help stabilize global energy prices.

Emphasizing the need for targeted support for the most vulnerable households to cope with current pressures, she pointed to models implemented in France and Romania that rely on energy vouchers for low-income families. She warned that universal subsidies could increase demand and impose significant costs on public budgets.

In reviewing developments in the energy market, von der Leyen said gas prices have risen by 140 percent since the end of February, while diesel prices have doubled. She added that fossil fuel imports have cost Europe an additional 100 billion euros (approximately 112.4 billion US dollars) without yielding any additional energy supplies.

She explained that rising energy costs are placing significant pressure on European businesses and households, warning that the situation could worsen as winter approaches. She stressed that the differing energy mixes among member states prevent the adoption of a one-size-fits-all solution for the entire Union.

Von der Leyen stated that the EU must continue to address structural issues in the medium and long term that make it vulnerable to fluctuations in global fossil fuel markets, calling for increased investment to enhance the resilience and independence of the energy sector.

She noted that more than 70 percent of electricity in the EU currently comes from local and clean sources, including renewables and nuclear power. Meanwhile, the share of Russian gas in EU imports has fallen from 45 percent four years ago to 12 percent currently, with a target of eliminating it entirely by the end of next year.

Von der Leyen affirmed that the long-term solution lies in replacing fossil fuels with clean electricity produced within Europe. She explained that wind and solar power generated more electricity last year than all fossil fuel sources combined for the first time.

She highlighted that the EU added more than 80 gigawatts of renewable capacity last year, but capacity equivalent to six times that amount remains awaiting connection to the electricity grids. She stressed the need to adopt a grid development package before the end of the year.

Currently, electricity accounts for less than a quarter of final energy consumption in the EU. The European Electricity Action Plan aims to double this share by 2040, which could help reduce fossil fuel imports by approximately 260 billion euros annually (around 292.4 billion US dollars).

She emphasized that every unit of clean energy produced and used within Europe reduces the EU’s reliance on importing energy from volatile global markets, considering the enhancement of clean production and infrastructure development as a fundamental pillar for strengthening European energy security. (End) A.R.N. / M.N.F.