EU aims to cut peak electricity demand by 5% to tackle soaring prices and energy crisis | Climate news

European Union countries will be forced to cut electricity use during peak hours by 5% under proposals to avert a looming winter energy crisis.

The draft EU plan seen by Politico and Reuters – which also includes wind taxes on energy companies – is designed to curb rising energy costs that are also fueling inflation and ensure the member states have enough fuel to get through the colder months.

The group of 27 countries has accused Moscow of weaponizing gas by cutting supplies in response to sanctions the bloc – along with its allies – imposed at the outbreak of war. Ukraine.

“Never before has this Parliament debated our Union State with war raging on European soil,” said European Commission President Ursula von der Leyen.

EU countries have agreed to cut gas use by 15%, and gas storage is now 84% full, exceeding the EU’s pre-winter fill target.

However, analysts say Europe will still need to cut gas use over the winter to avoid storage facilities running out.

Among the package of measures aimed at easing the impact of high inflation is a tax collected to offset what the European Commission describes as “surprise profits” from natural gas power plants. European gas and air fuel, related to soaring oil and gas prices due to Russian supply cuts.

Ms von der Leyen told the European Parliament in Strasbourg: “These companies are generating revenue that they have never counted on, they never even dreamed of.

She added it was “mistaken to receive the extraordinary record sales and profits enjoyed by war and consumer support”.

“Profits must be shared and delivered to those who need it most.”

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Chatham House deputy environment director Antony Froggatt said the targets and taxes were “significantly different” from UK policy.

He said there was “very little mention of the importance of demand-side measures” during Prime Minister Liz Truss’ speech last week, which promised a £100 billion emergency bailout for households to help pay their energy bills. Ms. Truss opposes imposing new taxes on energy producers.

Brussels says its wind tax plan will raise 140 billion euros from energy companies’ profits to cushion the impact of this winter’s record high energy prices. Mr Froggatt told Sky News the cash was likely to attract “substantial support” for the policy from member states.

According to Reuters.

Wind and solar farms and nuclear plants will face a limit of 180 euros (£156) per megawatt hour (MWh) on the revenue they receive to produce electricity, with government collecting any excess money and recycling it to support consumers.

The draft is still subject to change before being published as governments scrap the details, possibly adopting them at a meeting of energy ministers on September 30.

Speaking at the end of the hottest summer in the continent’s history, Ms von der Leyen highlighted how “the climate crisis is weighing heavily on our bills”, with heat waves boosting electricity demand and closing hydroelectric and nuclear plants.

Although she hasn’t made any major announcements on climate policy, the EC chair has pledged 3 billion euros (£2.6 billion) to a new European Hydrogen Bank to help.”[build] futures market for hydrogen”.

She called for better adaptation amid increasing droughts and fires, promising to double firefighting capacity next year.