EU energy plan could save 45 billion Euros on fossil fuel import bill

According to an analysis by the EU executive, plans due to be released on Wednesday by the European Commission could save 45 billion euros (47.3 billion dollars) from the EU's import bill for fossil fuels this year.

The Commission will propose a number of measures that aim to help European industries who are struggling to cope with a weak demand, low-cost imports and energy costs higher than in the U.S. or China.

The draft EU energy measures that was previously reported on included proposals for speeding up permits for renewable projects, changing how energy tariffs are calculated, and increasing state aid for cleaner industries and more flexible energy generation.

The Commission's analysis showed that, taken together, these measures could reduce the EU's import bill for oil and gas by up to 45 billion euro in 2025 and even more by 2030, resulting in an annual savings of 130 billion euro.

The majority of savings will come from increased energy efficiency and a faster expansion in renewable energy, which would reduce the demand for oil and natural gas.

It goes without saying that (renewable-energy projects) require a large amount of investment. We must also remember that not doing anything is expensive, said EU Energy Commissioner Dan Jorgensen in an interview.

He said, "We save money because we don't buy fuel from the outside."

The Commission can't force the member states to adopt all its plans, including its recommendation that national taxes be cut quickly to reduce energy prices. Jorgensen, however, said that if governments were serious about reducing energy prices they should step up.

He said: "That would mean implementing the rules and regulations already in place and utilizing the opportunities that are available to lower the prices."

The energy purchases of Europe have fluctuated over the past few years. According to data from the Commission, EU spending on fossil fuel imports plummeted to 163 billion euro in 2020, during COVID-19, and then reached 604 billion euro in 2022, after Russia cut off gas deliveries and prices spiked.

Europe will eventually reduce its gas consumption to meet climate goals. It also faces high energy costs and the threat of tariffs from U.S. president Donald Trump who warned the EU before he took office that it would be subject to higher prices if they did not buy more U.S. gas and oil. ($1 = 0.9510 euros) (Reporting and Editing by Margueritachoy)

(source: Reuters)