Two years ago, after Russia's full-scale invasion of Ukraine, the European Union resolved to start weaning itself off cheap Russian energy.
The plan, called REPowerEU, involved marshalling hundreds of billions of euros from different sources to diversify the bloc's energy supplies, reduce energy consumption and speed up the green transition.
Two years on, the commission is taking stock of REPowerEU's progress.
Two years of REPowerEU
Since the adoption of REPowerEU, the bloc has reduced imports of Russian gas substantially. The share of the EU's gas supplies from Russia - including both pipeline gas and bottled liquefied natural gas (LNG) - has fallen from 45% in 2021 to 15% in 2023. Norway and the United States have become the bloc's largest suppliers.
Meanwhile, seaborne imports of Russian coal and oil have been banned.
EU countries are also using less gas overall - meaning Russia's remaining 15% share is of a much smaller whole.
The reductions are detailed in 27 separate country reports, compiled by the European Commission. The reports examine each EU member state's performance under REPowerEU between August 2022 and January 2024.
Overall, EU countries are consuming 18% less natural gas for energy production today than they were two years ago, beating their original target of a 15% reduction. 21 countries beat their reduction targets, with the biggest drops seen in Denmark (-40%) and Finland (-39%).
Spain, Slovenia, Poland and Ireland fell short of the target, while Malta actually increased its gas consumption by 10%. Cyprus, meanwhile, doesn't currently use gas in its energy mix.
Reforming Europe's electricity market
On Tuesday, EU ministers also signed-off on a new legal regime for electricity markets, designed to protect consumers from the kinds of price shocks that followed the turmoil on the union's eastern frontier.
Belgian Energy Minister Tinne Van der Straeten described the day as a “milestone for the EU” on the path to a carbon-free and greener future. “By adopting the electricity market reform, we are empowering consumers, ensuring security of supply and paving the way for a more stable, predictable and sustainable energy market.”
New long-term contracts between governments and electricity producers - under which the state would chip in if the market price drops below an agreed price - are central to the reforms. The idea is to incentivize green and nuclear power production by ensuring a return on investments.
It also protects consumers who, in the future, have the right to choose between stable long-term prices and dynamic prices – for example, if they want to use electricity when it is cheaper, such as at night.
The electricity market in the EU works according to the "merit-order" principle, defining the order in which power plants connected to the electricity exchange are used to deliver energy and to determine the market price.
Those that can produce electricity at relatively low marginal cost, like wind farms, are used first to cover demand. But as demand rises beyond those initial sources’ capabilities, higher marginal cost sources are used.
The final price therefore depends on which sources need to be used to meet demand, as well as fluctuations in the costs of using those sources. For example, a surge in natural gas prices raises the cost of using gas-fired power plants.
The content of this article is based on reporting by BTA, dpa, EFE, HINA, LUSA, STA as part of the European Newsroom (enr) project.