European Commission wants to extend energy crisis measures by a year

The European Commission is seeking support to extend the crisis measures adopted across the EU last year in response to the ongoing energy crisis. Although the situation on energy markets is significantly calmer this year than last, it is proposing to extend the measures for a further 12 months.

European energy markets faced unprecedented price volatility and record-high energy commodity prices last year. In response, EU countries introduced a range of measures, some of which the European Commission would like to keep in place.

These include three measures in total: solidarity in gas supplies, joint purchases of natural gas and a cap on wholesale gas prices. The Commission's proposal also includes simplifying permitting for renewable energy projects, which are intended to help reduce gas consumption.

“Although the situation on the European energy market is more secure than it was 12 months ago, the Commission is proposing this extension to further improve the security of gas supplies and strengthen market resilience,” the Commission said about the proposal.

For example, the regulation on strengthening solidarity aims to ensure greater transparency in the liquefied natural gas (LNG) market. It also clarifies the rules on solidarity in natural gas supplies during periods of shortage.

Another measure introduced was the creation of the AggregateEU platform, which brings together demand for natural gas from European traders and non-Russian suppliers delivering gas by pipeline or in liquefied form (LNG).

The last of the measures mentioned is a price cap on wholesale natural gas prices. This regulation took effect in February this year and has not yet been used, given that the market has calmed since last summer's volatility.

Accelerating the deployment of renewables and heat pumps

In addition to extending the crisis measures, the Commission is proposing further measures, specifically simplifying permitting processes for renewable energy projects.

The proposal sets maximum permitting periods of three months for solar projects, six months for repowering renewable energy sources (upgrading existing power plants with more efficient or higher-capacity components, editor’s note), one month for heat pumps with an input capacity of up to 50 MW, and three months for heat pumps that use heat from the ground.

According to the Commission, the proposal must be approved by the European Council, but does not require the European Parliament's consent. The Commission also said it hopes the proposal will be approved by the end of this year.