REPowerEU
REPowerEU is a strategy adopted by the European Commission in May 2022 in response to the sharp rise in energy prices and the energy security risks that followed Russia's full-scale invasion of Ukraine. The energy crisis triggered by the invasion of Ukraine led to a significant increase in electricity prices across Europe, partly due to the structure of the EU electricity market, where prices are often set by the marginal cost of production. As natural gas prices rise sharply in 2021 and 2022, electricity prices increased accordingly, making the reduction of dependence on imported gas a central objective of EU energy policy.
Against this backdrop, REPowerEU aims to reduce the EU's dependence on Russian fossil fuels, accelerate the deployment of renewable energy, improve energy efficiency, and strengthen the resilience of the EU energy system. This initiative combines short-term crisis response measures, such as demand reduction and diversification of energy supply, with longer-term structural reforms. It is also closely aligned with the EU's climate objectives under the European Green Deal.
REPowerEU builds on existing EU legislation, notably the Fit for 55 package, which sets the goal of reducing net greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. In addition, the plan also makes use of funding under the Recovery and Resilience Facility, allowing Member States to finance energy infrastructure, renewable energy projects, and energy efficiency measures through dedicated REPowerEU chapters in their national recovery and resilience plans.
As a result of the measures taken since 2022, imports of Russian gas into the EU have declined significantly, falling from around 150 billion cubic metres in 2021 to approximately 52 billion cubic metres in 2024. Over the same period, Russia's share of the EU gas market dropped from about 45% to below 20%. Building on this progress, the European Commission adopted a legislative proposal on 17 June 2025 to gradually phase out imports of Russian gas and oil by the end of 2027, while further accelerating renewable energy deployment and energy efficiency improvements.
Background
Before 2022, the EU relied heavily on imports of fossil fuels from Russia, which was its largest external energy supplier. Russia accounted for approximately 40% of the EU's natural gas imports, alongside substantial shares of oil and coal. However, this dependence varied considerably among Member States. Germany and Italy were among the largest consumers of Russian gas, while Poland and the Baltic States pursued diversification strategies aimed at limiting reliance on Russian energy due to historical concerns. In several Member States, close energy relations with Russia were supported by national energy companies such as ENI, Uniper, and Wintershall, which facilitated long-term supply arrangements. More precisely, these contrasting perspectives were particularly evident in Germany's traditional view of energy cooperation as means of engagement and stability in relations with Russia, an approach commonly associated with its Ostpolitik which contributed to sustained support for Russian gas imports over several decades.As a result, prior to the adoption of REPowerEU, Member States continued to follow different national approaches. Germany and Austria supported the Nord Stream 2 gas pipeline, Bulgaria facilitated the transit of the TurkStream pipeline through its territory, and the Netherlands maintained energy cooperation with Russia amid declining domestic gas production. Despite being the EU's largest gas consumer, Germany had no operational liquefied natural gas import terminals before 2022 and had made relatively limited efforts to diversify gas supply sources compared with some other Member States.
Underlying vulnerabilities in the EU energy system became increasingly visible in the second half of 2021, when energy prices began to rise sharply due to high import dependence and limited supply diversification. These pressures intensified following Russia's invasion of Ukraine in February 2022, which raised concerns about potential supply disruptions across Europe. In March 2022, the European Commission announced initial measures to reduce imports of Russian fossil fuels, followed shortly by a call from EU leaders at the Versailles Summit for a coordinated phase-out strategy.
At the national level, many Member States rapidly adjusted their energy policies. Germany announced the construction of several LNG import terminals and sought alternative suppliers, while Italy expanded gas imports from countries including Algeria, Azerbaijan, Libya, and Qatar. Although these measures helped prevent immediate energy shortages, the initial response was largely driven by national governments and companies. This led to competition among Member States on global energy markets and contributed to higher prices. To address such challenges, the EU introduced coordination mechanisms including joint gas purchasing through the AggregateEU platform, aimed at reducing intra-EU competition and strengthening collective energy security.
Legislative process
From a legal standpoint, REPowerEU does not establish a new standalone instrument. Instead, it builds on the existing RRF framework, ensuring continuity with its governance structure while introducing the flexibility required to address an energy crisis fundamentally different from the health emergency that initially justified the RRF. Germany, as the EU's largest Russian gas importer, served as the primary driver for REPowerEU's origins, drove by Markus Pieper as ITRE rapporteur shaping energy decoupling priorities. This German-led initiative reframed the RRF amendment from pandemic recovery to macroeconomic stabilization under Article 122 TFEU, prioritizing LNG diversification, renewables acceleration, and hydrogen infrastructure to achieve full independence from Russian fossil fuels by 2027. REPowerEU marked a policy game-changer, mobilizing €300 billion through RRF chapters for 45% emissions cuts by 2030, 600 GW renewables by 2030, and energy efficiency gains, while embedding "energy security" as core EU objective alongside climate neutrality. Berlin's influence ensured pragmatic flexibility, fast-track permitting and temporary fossil imports, balancing urgency with long-term green goals, influencing subsequent Fit for 55 revisions.Policy goals
Saving energy
One of the main objectives of REPowerEU is to reduce overall energy consumption in the EU, thereby lowering demand for natural gas and improving energy efficiency. This approach is intended to reduce dependence on gas imports, particularly from Russia, and to strengthen the resilience of the EU energy system.Following the energy crisis triggered by Russia's full-scale invasion of Ukraine, the EU adopted the Gas Demand Reduction Regulation as an emergency measure. "The regulation encouraged Member States to voluntarily reduce gas demand by 15% relative to the 2017-2021 average. That target was exceeded, and even after the regulation expired in March 2024, gas consumption remained below pre-crisis levels. Between August 2022 and January 2025, the EU reduced its gas demand by about 17%, saving 70 bcm per year."
Energy efficiency measures were also strengthened. "The EU raised its 2030 efficiency target, requiring an 11.7% reduction in final energy consumption. As buildings use more than half of the EU's natural gas, new rules were introduced to make buildings more efficient and to accelerate renovations. By 2023, final energy consumption had fallen to 894 Mtoe, around 5.6% lower than in 2021. Full implementation of the revised Energy Efficiency and Energy Performance of Buildings directives remains necessary to meet the 2030 targets."
Last but not least, measures to improve energy security were introduced alongside demand reduction efforts. "After gas storage levels declined sharply in late 2021, the EU adopted rules requiring gas storage facilities to be filled to at least 90% of capacity before each winter. This threshold was reached ahead of schedule in both 2023 and 2024. By the end of the winter 2024-25, storage levels stood at around 34% on 1 April 2025, broadly in line with pre-crisis averages. These measures contributed to greater supply stability and reduced price volatility"
Diversify energy supplies
Another central objective of REPowerEU is to reduce the EU's reliance on Russian fossil fuels by diversifying energy sources and strengthening supply infrastructure. Since its introduction, imports of Russian oil, coal and gas have declined substantially. EU sanctions and increased imports from alternative suppliers contributed to this reduction. "By the mid-2020s Russian crude oil accounted for approximately 3% of the EU's oil imports, down from about 27% in 2022.""To support diversification, the EU established the EU Energy Platform in December 2022 followed by the AggregateEU joint purchasing mechanism in April 2023. AggregateEU enabled participating countries to coordinate gas purchases on a voluntary basis. Although the mechanism expired in March 2025, the European Commission has proposed developing a permanent framework for collective purchasing of gas and other strategic energy commodities. Furthermore, international energy cooperation has also expanded. The EU strengthened partnerships with key suppliers such as Norway, the United States, and countries in North Africa, particularly in relation to natural gas and emerging hydrogen markets."
Clean energy
Lastly, accelerating the deployment of renewable and low-carbon energy is a further core objective of REPowerEU, aimed at improving energy security while supporting the EU's climate goals."Electricity generation from renewable sources, particularly wind and solar power, has grown rapidly since 2022. Wind and solar combined have generated more electricity than gas and by 2023, wind on its own produced more electricity than gas. In October of that same year, the EU revised the Renewable Energy Directive, introducing a binding target for renewable energy to account for at least 42.5% of final energy consumption by 2030, with the ambition of reaching 45%."
"The deployment of heat pumps, which play a key role in clean heating, increased sharply in 2022 but slowed in subsequent years due to higher costs and installation challenges. To align with 2030 climate targets, the EU launched the Heat Pump Accelerator in January 2025." REPowerEU also promotes the development of renewable gases and hydrogen. Efforts include increasing biomethane production, establishing regulatory frameworks for hydrogen markets, and expanding electrolyser capacity across the EU.