EU Commission Draft Plan Proposes Financial Incentives to Reduce Gas Demand

An EU Commission draft plan titled ‘gas demand reduction plan’ suggests that EU countries should offer financial incentives to companies purchasing energy in order to reduce their demand for gas.

According to the document, countries should be encouraged to transition to renewable energy sources or postpone the closure of nuclear plants as a means to lower gas consumption. In addition, the draft proposes exempting coal-fired power stations from industrial emissions targets. The Commission recommends member states to limit heating in public buildings to 19°C and cooling to 25°C, while also initiating information campaigns to promote energy-saving practices.

The Commission highlights in the draft text that implementing such measures could reduce the impact of sudden supply disruptions by one-third.

Previously, Russia supplied approximately 40% of the EU’s gas. However, since mid-June, flows through Nord Stream 1 have been reduced by 60%. The draft paper indicates that current gas flows from Russia are now less than 30% of the average recorded between 2016 and 2021.

EU-wide gas storage is currently at 62% capacity, as reported by Gas Infrastructure Europe. However, certain countries, including Bulgaria and Croatia, have storage levels at only around 38%.