Decreasing Building Heating Levels By Just 1°C Will Reduce Annual Demand By 10bcm And Wean Away Europe From Reliance On Russian Gas: IEA

The International Energy Agency (IEA), a leading thinktank in energy sector, today (Mar 3) unveiled a 10-Point Plan to reduce the European Union’s reliance on Russian natural gas.

In 2021, the European Union imported around 140 billion cubic metres (bcm) for the year and around 15 bcm was delivered in the form of liquefied natural gas (LNG) from Russia. The total 155 bcm imported from Russia accounted for around 45% of the EU’s gas imports in 2021 and almost 40% of its total gas consumption.

The IEA proposed a series of immediate actions that could be taken to reduce reliance on Russian gas, while enhancing the near-term resilence of the EU gas network and minimising the hardships for vulnerable consumers.

The IEA said that implementing the 10-Point Plan will result in the EU’s annual call on Russian gas imports falling by more than 50 bcm within one year – representing a reduction of over one-third.

According to the IEA, turning down the thermostat for buildings’ heating by just 1°C would reduce gas demand by some 10 bcm a year. The average temperature for buildings’ heating across the EU at present is above 22°C. By djusting the thermostat for buildings heating would deliver immediate annual energy savings of around 10 bcm for each degree of reduction while also bringing down energy bills, IEA noted.

The key actions recommended in the IEA’s 10-Point Plan include not signing any new gas contracts with Russia, maximising gas supplies from other sources, accelerating the deployment of solar and wind, making the most of existing low emissions energy sources including nuclear and renewables, and ramping up energy efficiency measures in homes and businesses.

10-Point Plan

1. Do not sign any new gas supply contracts with Russia. [Impact: Enables greater diversification of supply this year and beyond]
2. Replace Russian supplies with gas from alternative sources [Impact: Increases non-Russian gas supply by around 30 billion cubic metres within a year]
3. Introduce minimum gas storage obligations [Impact: Enhances resilience of the gas system by next winter]
4. Accelerate the deployment of new wind and solar projects [Impact: Reduces gas use by 6 billion cubic metres within a year]
5. Maximise power generation from bioenergy and nuclear [Impact: Reduces gas use by 13 billion cubic metres within a year]
6. Enact short-term tax measures on windfall profits to shelter vulnerable electricity consumers from high prices [Impact: Cuts energy bills even when gas prices remain high]
7. Speed up the replacement of gas boilers with heat pumps [Impact: Reduces gas use by an additional 2 billion cubic metres within a year]
8. Accelerate energy efficiency improvements in buildings and industry [Impact: Reduces gas use by close to 2 billion cubic metres within a year]
9. Encourage a temporary thermostat reduction of 1 °C by consumers [Impact: Reduces gas use by some 10 billion cubic metres within a year]
10. Step up efforts to diversify and decarbonise sources of power system flexibility [Impact: Loosens the strong links between gas supply and Europe’s electricity security]

Many of the actions recommended in the plan – including stepping up energy efficiency measures, accelerating renewable deployment and expanding low emissions sources of power system flexibility – are key elements of the IEA’s Roadmap to Net Zero by 2050.

Acknowledging that reducing reliance on Russian gas will not be simple for the EU, the IEA said it it will requirie a concerted and sustained policy effort across multiple sectors, alongside strong international dialogue on energy markets and security.