BRUSSELS – The European Union executive will present a plan to digitize its energy network as it seeks to boost the deployment of renewable energy to reduce its dependence on Russian fuel.
The “Digitalisation of the Energy System” action plan, to be unveiled by the European Commission next week, will require an investment of 565 billion euros (786 billion Singapore dollars) in infrastructure by the end of the decade to realize its green plans and end reliance on Russia, according to a draft document seen by Bloomberg News.
As part of the proposal, the bloc seeks to promote the sharing of electricity consumption data from 2024 to help strengthen the flexibility of the region’s energy markets, for example by allowing solar panels and electric vehicles to put energy back into the grid.
The region must install solar panels on the roofs of all commercial and public buildings by 2027 and on all new residential buildings by 2029. The document also calls for the installation of 10 million heat pumps over the course of over the next 5 years and obtaining 30 million zero-emission heat pumps. vehicles on the road by 2030.
“The Russian invasion of Ukraine and the current high energy prices have only increased the need and the speed to ensure that the EU reinforces both its independence from Russian fossil fuel imports and its strategic sovereignty and security in creating a digital energy system,” the action plan reads. which is still subject to change, said.
As Russia cuts gas supplies and power plant outages further undermining supply, wholesale energy prices have soared to more than 10 times their seasonal average over the past five years.
The scheme will be the latest in a series of measures proposed by the EU weaning off Russian gas and accelerating the transition to renewables.
As the region’s demand for electricity grows, a more resilient energy grid will be needed to accommodate solar and wind technologies that can vary depending on the weather, while directing electricity where it is most needed. needed in the block.
The commission is also expected to issue a document on September 28 detailing measures to mitigate volatility and increase trading volume in energy markets after soaring prices led to higher margin calls, in addition to measures that the bloc could take to reduce fuel prices, according to EU diplomats. .
On September 30, energy ministers are due to debate proposals to impose a windfall tax on low-cost power generators and reduce electricity demand, especially during peak hours.
The EU will set up a group by March to boost energy data sharing between member states and businesses. The bloc will also support transmission system operators to create a “digital twin” of the power grid, which will help increase its efficiency.
To protect the network against cybersecurity risks, the Commission will propose a regulation addressing the threat posed to hydrogen and gas infrastructure, although no fixed timetable is given. BLOOMBERG