The European Commission has proposed a set of actions to protect EU citizens from the impact of the energy crisis, which Sean Casey, EY Ireland energy industry leader has described as a “welcome and pragmatic response”.
As the Commission noted, since the escalation of the conflict in the Middle East, the EU has spent an additional €24 billion on energy imports, without a corresponding increase in supply.
AccelerateEU
Its AccelerateEU initiative will combine short-term measures with longer-term structural actions, including coordinating fuel supplies across EU member states, refilling gas storage facilities, monitoring oil stocks, and ensuring the availability of essential transport fuels, including jet fuel.
These measures focus on “strengthening security of supply across the EU Bloc and easing costs for households and businesses in the short term, while also seeking to accelerate longer‑term investment in a more secure, sustainable and electrified grid,” Casey commented.
As he noted, the current energy crisis differs from previous situations – such as the 2022 price spike following Russia’s invasion of Ukraine, or the 1970s oil shock – given that it spans multiple fuel types and regions.
“We’re seeing pressure across oil, gas and power markets at the same time, which adds complexity, especially for countries like Ireland that sit at the end of long supply chains,” he added. “We are also in a situation where there is a significant degree of uncertainty, meaning that shocks may be prolonged and need to be managed carefully.
“The longer‑term lesson from all this is clear – the need to accelerate investment in renewables, grids, networks, storage and flexibility, and it’s especially welcome to see this central in the EU Commission’s response.”
Fuel Observatory
The Commission has also announced plans to establish a Fuel Observatory to track production, imports, exports, and stock levels, enabling authorities to respond more effectively to potential shortages. In addition, an Electrification Action Plan will be established to accelerate the transition to electricity across industry, transport, and buildings, and expand green energy capacity.
In March, the Commission adopted the Clean Energy Investment Strategy to mobilise private investment to support the energy transition – as it notes, some €660 billion per year will be required to finance the transition between now and 2030.
“Europe faces yet another fossil energy crisis,” commented Dan Jørgensen, Commissioner for Energy and Housing. “This must be a wake-up call and a turning point – when Europe steps away from fossil fuel dependence, and steps towards clean energy autonomy.
“With AccelerateEU we support our Member States in providing immediate relief to those struggling the most in our society, while doubling down on the clean transition and electrification. This is the only lasting way to guarantee stable, secure, clean and affordable energy supplies to all Europeans.”
‘Too late and too light’
Greenpeace said that the Commission’s plan to tackle the energy crisis is ‘too late and too light’ to deal with the issue at hand – the bloc’s continued dependance on fossil fuels.
“The Commission recognises the danger of the EU’s fossil fuel addiction, but is doing too little to root it out,” commented Greenpeace EU climate and energy campaigner Thomas Gelin. “Governments must protect vulnerable people from price spikes, but there’s a risk that untargeted measures just subsidise the oil and gas industry and pad their profits even more.
“Renewables, insulation, public transport and cutting energy waste are the quickest ways to break Europe’s dependence on fossil fuels, and stabilise people’s bills – the EU must act decisively and permanently on these, and tax oil and gas companies’ obscene profits to pay for it.”
Echoing this sentiment, Gareth Redmond-King, head of international at the Energy & Climate Intelligence Unit (ECIU) said that the clean energy transition represents the “only scientific solution we have to halt the damage climate change is wreaking on our cost of living, driving up food prices. But also no-one can blockade the sun and the wind, so electrification and renewables represent freedom from the need to import expensive and polluting fuels from some of the most volatile parts of the world.”
Elsewhere, BEUC, the European Consumer Organisation, said that the Commission’s plans represent a ‘much-needed’ set of measures to help consumers through the current fossil fuel crisis and beyond.
“It’s good that the European Commission will soon propose some concrete measures that would lead to tangible savings for consumers in the short-term,” said BEUC director general Agustín Reyna.
“Reducing charges and taxes and targeting support to where it’s needed could make a real difference to consumers’ energy costs. Longer-term, the best protection against the next fossil fuel crisis is to get rid of fossil fuel dependence. The Commission’s upcoming Electrification Action Plan must be ambitious to ensure long-term energy price savings. Every fossil fuel molecule that we can replace with electricity means more stable and predictable energy prices”.
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