Claude Turmes, Luxembourg energy minister, considers the gas shortage crisis an opportunity to turn to greener energies.  Photo: Guy Wolff/Maison Moderne

Claude Turmes, Luxembourg energy minister, considers the gas shortage crisis an opportunity to turn to greener energies.  Photo: Guy Wolff/Maison Moderne

The member states of the European Union on 26 July adopted a gas demand reduction regulation which will see countries cut consumption by 15% ahead of winter, with Luxembourg set to present its plans by the autumn after stakeholder talks.

The European Commission on 20 July to tackle the gas shortage. The latter is a result of Russia withholding fossil fuel from the EU after being sanctioned for invading Ukraine in February.  

“We need solidarity, coordination, at the European level”

Energy ministers from all EU states came together in Brussels on 26 July and decided to adopt the regulation, which would allow the commission to declare a “union alert” in case of substantial risk of shortage or exceedingly high demand, or if five or more states declare a national emergency. They took turns expressing their country’s plans to meet the 15% target.

“Even if Luxembourg would be less affected than other countries such as Germany or Austria in case of a total interruption of Russian supplies, we have to show solidarity and try to reduce our energy consumption,” the grand duchy’s (déi Gréng) stated in a press release later in the afternoon.

“In Luxembourg, we are trying to promote wind and solar at high speed.” For the energy minister, the regulation and reduced consumption “will also help us to combat climate change” as well as rising energy prices, and “is indicative of our determination to avoid this pressure that will weigh on us next winter.” In the past, the green minister had already stated the crisis was an opportunity to switch to renewable energies. 

“I have to say that never in a single week have I seen a European regulation of such magnitude,” Turmes said, also demanding that a “common purchasing platform that will benefit even the smallest member states must be created”.

“We need solidarity, coordination, at the European level”, rather than a EU level, according to Turmes.


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Some exemptions to the regulation

The aim of the regulation is to store energy in the warmer months and use it during the winter. According to the commission, taking action now would ease the burden on the economy, reduce market pressure and allow the EU to meet the 80% gas storage target it has set to ensure supply for the colder months.

Agreeing to adopt the regulation, the EU Council has, however, made some exeptions, to “reflect the particular situations of member states”, it .

This includes for instance countries that are not interconnected to other EU states’ gas networks, as well as those with limited interconnections to other states provided that they can demonstrate their interconnector export capacities are used to redirect gas to other European countries to the fullest.

In general, member states agreed to do everything possible to avoid households and prioritised services--like healthcare buildings--feeling the reduction.

The measure adopted should only be in place for one year and its extension will be up for review by May 2023.

An updated strategy for autumn

“The global gas market is constrained and it is impossible to replace every cubic metre of Russian gas with a cubic metre of gas from an alternative source. What was missing was a coordinated initiative on the demand side: we need to reduce our gas consumption as much as possible,” Turmes said after the EU summit. Reduction rather than replacement seems therefore to be key to the grand duchy’s strategy.

The energy ministry on 26 July also shared that it was currently working on updating its national emergency plan in the case of a gas shortage and that it was preparing--as per instructions by the commission--a plan to reduce its demand. It promises that a “close consultation with all stakeholders will take place.”

These plans should be ready at the start of autumn, the ministry said.


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