In response to global energy market disruptions following Russia’s aggression against Ukraine, the Commission acted decisively, in line with the Versailles Declaration, and unveiled the REPowerEU Plan in May 2022. It called for ending Europe’s dependency on Russian energy imports by saving energy, accelerating the deployment of renewable energy and diversifying supplies.
The EU has been delivering on its commitments and has demonstrated its capacity to respond effectively in the face of unprecedented geopolitical challenges.
The EU has successfully reduced the share of Russian gas imports from 45% in 2022 to 12% in 2025. As a result of EU sanctions, Russian coal has been eliminated from our energy mix, and oil imports have declined from 27% at the beginning of 2022 to 2% in 2025. EU countries operating Russian-designed nuclear reactors (VVERs) continue shifting toward non-Russian alternatives.
Despite the progress achieved, in 2025 the EU still imported 36 billion cubic meters of Russian gas, 9.7 million tonnes of crude oil and almost 2 900 tonnes (preliminary figures) of uranium in enriched or fuel form. To address the phase-out of remaining Russian energy imports, the Commission presented the REPowerEU Roadmap in May 2025, setting out a gradual removal of Russian oil, gas and nuclear energy from the EU markets.
Less than a year later, and following a historical political agreement, the REPowerEU gas regulation, entered into force on 3 February 2026, turning one of the REPowerEU Plan's objectives into a binding law. It establishes a gradual, but permanent, end to Russian liquefied natural gas (LNG) imports in 2026 – in alignment with sanctions – and Russian pipeline gas imports in 2027. To ensure the integrity of these measures, the regulation establishes a robust enforcement system, including harmonised penalties and safeguards across EU countries. To support the implementation of the ban, the Commission published detailed guidance and periodically organises meetings with EU countries and the industry.
The Commission is committed to further advancing the phase-out of Russian oil imports, as signalled in the statement on the phase out of Russian oil imports accompanying the REPowerEU gas regulation, and is actively supporting concerned EU countries in their oil diversification efforts.
As the global landscape continues to evolve, notably with ongoing instability in the Middle East, the need for sustained resilience remains paramount. The uncertainty and volatility arising from the closure of the Strait of Hormuz reinforces the relevance of the REPowerEU Plan objectives and strategy. Higher global fossil fuel prices directly translate into higher costs for the EU.
The energy crisis of 2022 taught us the benefits of EU-wide coordination and that accelerating the deployment of renewables, electrification, reducing natural gas demand and enhancing energy efficiency are key for our energy security and economic stability. REPowerEU ensures that Europe’s energy future is decided in Europe.
This online report is accompanied by 28 fact sheets – one per EU country and one for the EU as a whole – providing a detailed country-specific analysis.
Save energy
One of REPowerEU’s major objectives is to promote energy savings and improve energy efficiency because the safest, cleanest, and most affordable energy is the energy we do not consume. Accordingly, the EU has taken decisive measures to curb overall gas demand and swiftly reduce dependence on Russian imports.
In response to the energy crisis triggered by Russia's war of aggression, the EU adopted the Gas Demand Reduction Regulation (EU/2022/1369) as an emergency measure in 2022. The collective efforts of citizens, businesses, and EU countries consistently exceeded the voluntary target of 15% compared to the 2017–2021 average set by the regulation.
After the expiry of the emergency regulation in March 2024, consumption has continued to fall, underscoring a permanent shift in European energy behaviour. Between August 2022 and January 2026, the EU successfully reduced its gas demand by around 19% compared to the 5-year pre-crisis reference period, equivalent to an annual saving of 80 bcm (Eurostat).
This has proven to be instrumental in phasing out Russian gas in line with the REPowerEU objectives. In 2025, the EU spent €335 billion on fossil fuels, €55 billion less than in 2024.
The revision of the Energy Efficiency Directive increased the ambition of EU countries to collectively ensure an additional 11.7% binding reduction in final energy consumption by 2030, compared to the projections of the EU reference scenario 2020. To support this, the Commission launched the Energy Efficiency Roadmap in 2025, setting out 10 concrete areas of action for EU countries, accompanied by a list of priority Commission deliverables for 2025-2026, including a Heating and Cooling Strategy and a Data Centre Energy Efficiency Package.
In 2024, final energy consumption was 900 million tonnes of oil equivalent (Mtoe) representing a 5.1% reduction compared with 2021. This points to progress towards the achievement of the EU’s energy efficiency targets but is still 18% away from the 2030 target.
Energy efficiency measures are key to protect consumers as enhancements in energy efficiency across buildings, industry, and transport have delivered approximately €120 billion in savings on energy bills and could rise to about €162 billion in 2030 as indicated in the Action Plan for Affordable Energy.
Actions targeting the energy consumption and use in buildings are also particularly relevant. The use of natural gas in residential and services buildings represented 35% of the EU’s natural gas consumption in 2024. The recast of the Energy Performance of Buildings Directive creates a robust legislative framework to improve the energy performance of the building stock and to reduce the exposure of households to the volatility of energy prices. Renovating buildings can generate yearly savings of up to €881 per household. Each EU country will develop its own national building renovation plan setting out the national strategy to transform residential and non-residential buildings, both public and private, into a highly energy efficient and decarbonised building stock by 2050.
The Commission kept its commitment to reduce energy bills, protect and empower citizens to actively participate in the clean energy transition and tackle energy poverty by presenting the Citizens’ Energy Package in March 2026. The Commission also put forward a support package for Energy Efficiency Financing and established the Energy Efficiency Financing Coalition, a cooperative platform between the Commission, EU countries, financial institutions and industry to mobilise private financing, improve access to finance for enterprises and citizens, and stimulate demand for energy efficiency solutions.
Heat pumps are a mature technology, 3 to 5 times more energy efficient than gas boilers, and can reduce the EU’s dependence on imported fossil fuels. The heat pump market saw an exceptional peak in 2022 and 2023, with sales of all heat pumps for space heating (hydronic and air-to-air) surpassing 2.7 million. However, there was a steep contraction in 2024 with only 2.1 million units installed. Sales increased again in 2025 with more than 2.3 million heat pumps installed, but have not yet returned to 2022-2023 levels.
Market slowdown reflects a combination of a high electricity-to-gas price ratio, a long and complex customer journey (due to a lack of installers, long waiting periods and high cost of installation), stop-and-go in national funding, limited financing and business models to overcome upfront costs and a slowdown in the construction sector. A more cost competitive and hassle-free heat pump market for the consumer will sustain and build demand. In 2025, the Heat Pump Accelerator Platform, a partnership between the Commission and the European Heat Pump Association, proposed a set of measures to reduce cost of heat pump installation.
Electric vehicles (EVs) offer significant benefits for flexibility, contributing to congestion management, renewable integration and system balancing, while empowering consumers to actively participate in energy markets.
In 2025, EVs reached 17.4% of sales in Europe (1.9 million) and are booming in 2026, with a 21% market share in March. EV prices decreased by 4% in 2025, driven by the launch of more compact models and decreasing battery prices. In 2025, nearly 24 000 electric trucks and buses were registered in Europe - a 60% increase from 2024 - reaching sales shares of 4.5% and 25% respectively, with several countries only purchasing 100% zero emission urban buses in 2025. While these are impressive figures, further acceleration is needed.
European initiatives such as the Automotive Action Plan of March 2024, the Automotive Package of December 2024, and the revised Renewable Energy Directive helped shape these trends. The upcoming Electrification Action Plan and the review of the Alternative Fuels Infrastructure Regulation (AFIR) should help address the remaining barriers.
The EU’s long-term strategy is clear: to achieve clean, abundant and homegrown energy, while combining targeted short-term measures with technologically neutral solutions that respect national specificities. The current crisis shows that Europe’s dependence on fossil fuel imports is neither sustainable nor secure. More than half of the energy consumed in the EU still comes from imported fossil fuels, including over 80% of gas and more than 95% of oil, leaving households, SMEs and energy-intensive industries highly exposed to global price volatility, with direct impacts on inflation, growth and jobs.
The urgency to advance in the clean energy transition is reflected by the scale of the EU’s exposure. In 2025, the EU imported €336.7 billion worth of energy products, with additional costs estimated at around €44 billion since the start of the most recent conflict in the Middle East.
In this context, immediate relief must go hand-in-hand with accelerating the transition. The March 2026 European Council meeting called for targeted, temporary measures to address the recent spikes in the prices of imported fossil fuels.
The AccelerateEU Communication promotes coordination at EU level – including through the Energy Union Task Force Security – and focuses on
- protecting consumers from price shocks and protecting the most vulnerable
- achieving immediate energy savings through targeted measures to reduce oil and gas consumption
- accelerating the clean energy transition by strengthening structural measures to deploy renewables and low carbon gases, increasing the efficiency of the energy system and better leveraging storage and demand flexibility
Almost all EU countries have included investments in energy efficiency in their Recovery and Resilience Plans, as well as investments and reforms in the deployment of renewables, energy infrastructure and diversification.
Security of gas supply
Gas storage is a key asset to ensure EU energy security as it provides around one third of the EU’s winter gas consumption. Demand reduction and storage measures contribute to stabilising energy prices, benefitting the competitiveness of the EU economy.
Following the halt of injections in European gas storages by Russian companies and the historical low gas storage levels in November 2021, the EU set storage targets to ensure 90% full storages ahead of each winter. This target was reached months in advance in 2023 and 2024.
Before its expiration by the end of 2025 and in the context of continued volatility and uncertainty in the global energy landscape, the Commission proposed to prolong the Gas Storage Regulation for 2 years until the end of 2027. The EU adopted the amendment in September 2025 ahead of the winter season.
In 2025, gas storage levels peaked at 83% on 1 October, the lowest since 2021. However, there was no risk to our security of supply. In Spring 2026, EU gas storage levels remained stable, although they were below the average of the last 5 years. In the context of the current volatility in the global energy markets, the Commission invites EU countries to make use of the flexibility provisions in the regulation and to consider reducing their filling target to 80% as early as possible in the filling season, to provide certainty and reassurance to market participants.
The Commission is working on strengthening its energy security, building on the lessons learned from recent years. The EU should also prepare itself for emerging threats, such as physical, cyber and climate risks for European energy infrastructure.
To ensure that the EU remains prepared for potential supply disruptions, the Commission is working on a revision of the Energy Security Framework planned for adoption in 2026. Our future framework should be flexible enough to deal with a wide variety of risks.
Diversify energy supplies
Since the adoption of the REPowerEU Plan, the EU has drastically reduced the import of Russian fossil fuels and successfully diversified its energy supplies.
Imports of Russian coal have been fully eliminated from the EU’s energy mix. As a result of EU sanctions, Russian crude oil accounted for 2% of the EU’s crude oil imports in 2025 versus 20% in 2022. Imports of Russian LNG and pipeline gas dropped from a 45% share of overall EU gas imports in 2021, to 12% in 2025, a decrease from 152 billion cubic meters (bcm) in 2021 to 36 bcm in 2025.
A key milestone on advancing towards the phase-out of Russian gas imports was the adoption of the REPowerEU Gas Regulation by the EU in February 2026. Following its entry into force, the EU is set to fully phase out Russian LNG imports by the end of 2026 and Russian gas imports via pipeline by no later than 30 November 2027.
The regulation also supports the preparation for a phase-out of the remaining Russian oil imports, affecting only 2 EU countries which the Commission is actively supporting in their diversification efforts.
Since April 2025 Czechia stopped importing Russian oil, which accounted for a significant share of its imports at the end of 2024. This was possible thanks to the completion of the TAL-PLUS project, allowing Czechia to replace Russian oil supplies with alternative sources.
These are significant achievements, setting the EU on track to phase out imports of Russian fossil fuels as soon as possible. The progress achieved implies that annual payments to Russia continued to decline in 2025 and were -85% below pre-crisis levels.
The Commission established the EU Energy Platform in December 2022 with the objectives of
- facilitating demand aggregation and joint purchasing of gas
- ensuring the most efficient use of existing infrastructure
- supporting international outreach efforts
In April 2023, the Commission launched the demand aggregation and joint purchasing mechanism AggregateEU. Through 7 matching rounds, more than 119 bcm of gas demand from European companies was aggregated and 191 bcm was offered by international suppliers. After inviting sellers to submit competitive offers, AggregateEU matched them with close to 100 bcm of European demand.
Following its success as a crisis instrument, AggregateEU was discontinued in March 2025 to make way for a more comprehensive permanent solution. Building on the expertise gained from joint gas purchasing, the Commission launched the EU Energy and Raw Materials Platform in 2025.
It empowers EU companies to source a broader range of strategic products and commodities, through
- the Hydrogen Mechanism to accelerate the market creation of hydrogen, ammonia, methanol and eSAF
- the Raw Materials Mechanism to help secure strategic raw materials for Europe's competitiveness
- the Gas Mechanism to enable biomethane market growth and joint gas purchasing
This ensures that European industry has access to the sustainable and diversified inputs required for the green transition.
As outlined in the Commission Staff Working Document assessing the impact of measures to phase-out Russian gas imports (SWD/2025/830), the gas infrastructure in the EU is sufficiently developed, well-interconnected and flexible, to enable EU countries to access LNG and pipeline imports from non-Russian sources.
The natural gas infrastructure projects aimed at enabling the complete implementation of the REPowerEU objectives in Central and South-East Europe are under completion and are regularly monitored by the High-Level Group for Central and South-Eastern Europe Energy Connectivity (CESEC). EU countries have taken significant actions to enhance energy infrastructure by finalising or upgrading cross-border interconnections and LNG terminals, such as the Krk LNG terminal expansion in Croatia completed in 2025.
To accommodate the increase of LNG supply to Europe, EU countries made major infrastructure investments: a record number of new floating storage and regasification units (FSRU) terminal projects have been commissioned over the past 4 years. As a result of these investments and project development, the EU’s LNG import capacity increased by 76 bcm between 2021 and 2025, to a total import capacity of 242 bcm per year.
European financial support has been critical for the advancement of projects supporting the REPowerEU objectives such as the above-mentioned Krk FSRU terminal, transmission infrastructure reinforcements in Croatia to substantially increase its cross-border capacities towards Slovenia and Hungary (ongoing), the Adriatica Line and Poggio Renatico compressor station in Italy (ongoing) and the new onshore section of the FSRU terminal project in Gdansk in Poland.
In addition to the ongoing completion of Projects of Common Interest (PCIs) and of Projects of Mutual Interest (PMIs) under the revised TEN-E Regulation, the second Union PCI and PMI list was adopted on 9 April 2026, including 235 cross-border energy projects to strengthen energy connectivity across the continent, bringing nearer the completion of the Energy Union.
4 calls for proposals for financing from the Connecting Europe Facility for Energy (CEF) were organised in 2022, 2023, 2024 and 2025. The calls from 2022 to 2025 awarded a total of €3.1 billion to 75 projects. These investments significantly enhance the connectivity in the EU’s internal energy market. Flagship projects promoted by these calls include the LNG terminal in Gdansk, the Baltic Synchronisation to connect the Baltic States to the EU’s continental electricity system, the Bornholm Energy Island and the Aguayo storage project in Spain.
Dependencies in the nuclear sector are multi-facetted. Russia supplies products and services to EU customers across the whole nuclear fuel cycle.
Progress has been made in substituting Russian nuclear fuel with supplies from alternative producers in the 5 EU countries operating Russian-designed VVER (water-cooled, water-moderated energy reactor) units. Since 2022, utilities in all of these countries have signed contracts for non-Russian fuel supply. Before such fuel can be deployed, however, it must undergo testing and obtain national licensing in each EU country.
While the global uranium market remains relatively diversified, a key vulnerability lies in the high concentration of conversion and enrichment capacity among a few companies. Currently, those in the EU or other Western countries cannot meet overall demand, as capacity for both conversion and enrichment remains limited.
The first new enrichment installations in Europe are not expected to become operational before 2027, while additional conversion plants are unlikely to start production before the 2030s. Moreover, parts of the EU nuclear sector continue to rely on Russia for specific spare parts and maintenance services. Strengthened international cooperation, notably within the G7 framework, is essential to ensure adequate supply and build long-term resilience.
On 10 March 2026, the Commission adopted a Small Modular Reactors (SMRs) strategy which outlines a comprehensive framework to accelerate the development and deployment of SMRs in Europe with the objective of delivering the first projects in the early 2030s. SMRs have the potential to bolster EU research and innovation leadership while playing a key role in a flexible, safe and efficient energy system characterised by an ever-increasing share of clean electricity.
The Commission has continued strengthening international partnerships and its diversification agenda with non-Russian suppliers to secure more reliable and affordable imports of gas. This has involved deepening energy relations with key partners such as Norway and the U.S., as well as partners across North Africa, the South Caucasus, and the Middle East. As part of this effort, the EU has signed a series of Memorandums of Understanding (MoU) with neighbouring countries (Norway, Ukraine) and others (Azerbaijan, Namibia, Japan, Argentina and Uruguay).
Norway has played a crucial role in the EU’s strategy to phase out energy imports from Russia by ramping up its natural gas exports to the EU after the full-scale invasion of Ukraine. Norway remains our biggest supplier of natural gas, accounting for 31% of EU imports (89 bcm, pipeline and LNG) in 2025. As a member of the EU energy market through the European Economic Area Agreement, cooperation on clean energy sectors is facilitated and embedded in the EU-Norway Green Alliance.
The EU–U.S. energy partnership was significantly strengthened in the aftermath of Russia’s invasion of Ukraine and further reinforced by the EU–U.S. trade agreement. Rapid progress in implementing its energy pillar has delivered tangible results, with record-breaking deals in both the LNG and nuclear sectors. In 2025, this translated into over $200 billion in imports and concluded agreements, alongside a record 76 bcm of U.S. LNG imported by the EU. The partnership also offers long-term value across other areas, such as nuclear technology and enrichment, geothermal energy, and emerging technologies such as Small Modular Reactors (SMRs) and fusion.
With the aim of increasing gas supplies through the Southern Gas Corridor, the EU and Azerbaijan signed a MoU on a strategic partnership in the field of energy on 18 July 2022. Gas supplies from Azerbaijan increased by more than 40% between 2021 and 2024.
Algeria remains a major and reliable gas supplier to the EU. In 2025, gas exports from Algeria, both pipeline and LNG, reached 35 bcm. The Commission maintains a regular dialogue with the Algerian authorities with a view to develop an energy partnership towards renewable energy.
The EU also intensified its relations with the Gulf countries. The Communication on a Strategic Partnership with the Gulf was published alongside the REPowerEU Plan and identified, alongside the need for traditional energy security cooperation, the clean tech sector as a future top priority. The EU’s commitment to clean tech cooperation with the Gulf was reinforced at the 2023 EU-GCC Summit and through the EU-Saudi MoU on Energy Transitions. Engagement continued via the EU-GCC Green Transition Project, which held technical workshops across the region from late 2023. In 2025, Qatar remained a key LNG supplier, delivering around 11 bcm of gas to the EU. Despite Iranian attacks on Gulf energy infrastructure, posing a potential risk to EU energy security, the disruption has so far had a limited impact on actual LNG flows to the EU. Cargoes delivered in March to the EU were loaded prior to the closure of the Strait of Hormuz. Since its closure, no LNG deliveries from Qatar have been observed, implying a potential loss of around 1 bcm per month in April, May and the coming months if the disruption persists. As LNG is a global market, the main risk for the EU relates to price effects and increased competition with Asia, including the potential diversion of cargoes. The EU reaffirmed its solidarity with regional partners through high-level outreach.
The Commission has enhanced regional cooperation under the Central and South-Eastern European Energy Connectivity (CESEC) High-Level Group, the region that historically was fully dependent on a single supplier. The CESEC is the main cooperation forum for energy policy priorities in the region. It currently consists of 17 members including 9 EU countries and 8 Energy Community Contracting Parties. The work of the High-Level Group directly contributes to the diversification objectives of REPowerEU in the EU and in the Energy Community.
A Strategic Partnership with Ukraine on renewable gases was established and the MoU on the EU–Ukraine Strategic Partnership on Biomethane, Hydrogen and other Synthetic Gases was signed in February 2023 at the 24th EU–Ukraine Summit in Kyiv. The first deliveries of biomethane from Ukraine to the EU took place in February 2025.
The EU continues its unwavering support to Ukraine and Moldova.
The EU contributes to Ukraine’s energy security in the face of Russia’s unprovoked attacks on energy infrastructure by supporting emergency repairs and making sure Ukraine can make use of electricity imports from the EU. The Ukraine Energy Support Fund managed by the Energy Community Secretariat and the Union Civil Protection Mechanism (UCPM) are the backbone of the EU’s effort to sustain Ukraine’s energy resilience. Global pledges have reached close to €2 billion in the Ukraine Energy Support Fund, and, via the EU’s Ukraine Facility, €977 million European Bank for Reconstruction and Development/European Investment Bank loans continue to stabilise Ukraine’s gas and power systems. As co-chair of the G7+ Energy Coordination Group, the EU is supporting Ukraine by coordinating international assistance to repair damaged energy infrastructure, provide critical equipment and strengthen the resilience of Ukraine’s energy system, while also advancing cooperation through the EU–Ukraine High Level Working Group on Energy Market Reforms to support energy market integration with the EU energy market.
Similarly, the EU stands by Moldova, which has fully diversified away from Russian energy sources. In 2025, the Commission and Moldova agreed on a 2-year Comprehensive Strategy for Energy Independence and Resilience and immediate support with the energy bills backed by €250 million of EU support in 2025 alongside the €1.9 billion Growth Plan for Moldova, aimed at boosting the energy sector and driving broader economic development. Energy cooperation continues to deepen under the EU–Moldova High-Level Energy Dialogue, with the 6th meeting in June 2025 reaffirming shared priorities to strengthen Moldova’s energy security, advance market integration and accelerate renewable energy deployment. The 7th meeting is planned for May 2026.
Produce clean energy
REPowerEU puts the accelerated production of clean energy at the centre of efforts to enhance the EU’s energy security and ensure the decarbonisation of our economy. In October 2023, the EU agreed on strengthened legislation to increase its renewables share in the context of the revised Renewable Energy Directive, raising the EU’s binding target for 2030 to at least 42.5%, with the aspiration to reach 45%.
The EU has delivered a significant increase in its production of energy from renewable sources. The share of renewables in the energy mix increased from 10% to 25% between 2006 and 2024. Since 2021, the EU has installed 260 GW of renewable capacity (204 GW solar PV and 57 GW wind). This has led to €5.6 billion in savings of gas that would have otherwise been used for generation in 2025.
Since 2022, the EU has deployed renewables at record speed, with wind and solar generation increasing by more than 50% in the last 5 years. Wind and solar energy now provide 31% of the EU’s electricity, overtaking fossil fuels.
The role of storage in better integrating renewable energy sources and therefore facilitating their further expansion is becoming increasingly important. According to the information provided by the European Energy Storage Inventory in April 2026, the EU now has around 55 GW of cumulative installed storage capacity, with over 30 GW of storage in the pipeline, mostly batteries, already permitted or under construction.
Total installed capacity now stands at 359 GW compared to 303 GW installed by the end of 2024. With almost 56.1 GW of new solar energy capacity installed in 2025, the EU has seen 2 years of record deployment after 56.7 GW were installed in 2024. Moreover, June 2025 was the first month in history where solar energy was the main source of electricity generated in the EU at 22%.
While these are impressive figures, further acceleration is still needed to meet the REPowerEU targets under the EU Solar Energy Strategy and reach at least 700 GW by 2030. Combining solar PV installations with storage is becoming an enabler for accelerating the deployment of solar PV, as hybridisation can strengthen the business case.
According to Eurostat, wind energy accounted for 37.5% of renewable electricity generation in the EU in 2024. 13 GW of new capacity was installed in the EU in 2025, amounting to a total 244 GW, up from 188 GW in 2021.
To support further development of the sector, the Commission adopted the Wind Power Package in October 2023. It was followed by the signature of the Wind Charter and the submission of Wind Pledges in December 2023.
On top of these sector-specific actions, the revised Renewable Energy Directive addresses the permitting bottleneck for renewables and co-located storage through spatial planning, simplification and shortening of procedures.
Targeted measures have been adopted to further accelerate the deployment of renewables in the EU
- a Commission Recommendation and guidance on the design of renewable energy auctions
- an updated Recommendation and guidance on speeding up permit-granting procedures for renewable energy projects
- a guidance on designating renewables acceleration areas
- a Commission Recommendation and guidance on innovative technologies and forms of renewable energy deployment
- a Commission guidance on the design of two-way contract for difference for direct-price support schemes
To enhance visibility and predictability for the whole value chain, an EU-wide renewables auctions platform was launched, as part of the package, consolidating information on planned renewable energy auctions in EU countries.
As announced in the Affordable Energy Action Plan, the Commission will continue supporting EU countries in the transposition and implementation of permitting rules for renewables and seek stakeholder views to identify the remaining bottlenecks to permitting and the possible way forward.
In addition, the Commission put forward a legislative proposal to accelerate permitting for grids, renewables, storage and recharging stations as part of the European Grid Package adopted on 10 December 2025. The package addresses the main administrative challenges to the fast deployment of grids, renewables, stand-alone storage and charging infrastructure by digitalising and streamlining permit granting procedures and promoting the appropriate allocation of resources for permitting authorities.
Tackling cross-sectoral issues that impact all renewables will also help foster the ramp-up of renewable fuels and gases.
Biomethane and biogas production is increasing at an impressive pace, contributing to achieving the REPowerEU target of producing 35 billion cubic meters (bcm) per year by 2030. Industry reports that biomethane production in Europe grew to 4.9 bcm in 2023, with an installed capacity reaching 6.4 bcm in first quarter of 2024.
As for hydrogen, the EU has put in place a comprehensive policy framework. As of July 2025, around 600 MW of operational electrolysis capacity is in place (with 0.6 million tons secured firm offtake deals in the EU). However, it is still below the required levels to achieve the renewable hydrogen targets by 2030. Close to 3 GW of electrolysis capacity is under development (with a final investment decision taken or under construction with the aim of being in operation by 2030). The necessary infrastructure is already being built by future hydrogen network operators.
EU Funding supporting REPowerEU
In addition to the Cohesion policy funds (European Regional Development Fund + Cohesion Fund + Just Transition Fund + European Social Fund Plus), EU countries can make the critical reforms and investments needed to rapidly end their dependence on Russian fossil fuels with support from the Recovery and Resilience Facility (RRF).
The RRF comes to an end in 2026. All the milestones and targets related to the investments and reforms included in the national Recovery and Resilience Plans (RRPs) must be completed by 31 August 2026. By 10 April 2026, almost €400 billion (69% of the funds committed) have been disbursed, with 22 more payment requests submitted by the EU countries being under assessment. The majority of the milestones and targets have been assessed as fulfilled (83% in France, 79% in Austria, 75% in Denmark and 72% in Ireland).
EU countries have allocated, in total, €153.8 billion to energy measures, 27% of the total €577 billion allocated funds, including energy efficiency, skills development and hydrogen. The support goes to energy investments, but also to reforms (almost 200 energy relevant reforms in total).
All EU countries have a REPowerEU chapter in their RRPs, and all of them have allocated significant funds for energy. Almost all EU countries have allocated funds for energy efficiency, for renewable energy, and for energy networks.
The allocation to energy, as a percentage from the total RRP, differs significantly between EU countries, ranging from 39% in Bulgaria to 18% in Slovenia.
In terms of impact, across Europe, the RRF will
- enhance energy efficiency in residential buildings, supporting the retrofitting of about 420 million m2. This represents approximately 4.7 million dwellings and is projected to generate annual household savings of about €3.8 billion (€881 per household per year)
- support the expansion of renewable electricity capacity by more than 61 GW by 2026. This represents about one third of all capacity deployed in the EU between 2021 and 2024, covering the needs of about 40 million households and delivering about 15.8 billion cubic meters of natural gas savings. It is projected to provide 113 TWh of annual renewable energy sources (RES) generation
- support grid development, with the addition or reinforcement of over 10 000 km of grids to help reduce grid congestion. In addition, about 11 GW of storage capacity will reinforce the reliability of the grid and reduce reliance on fossil fuels
At national level
- the largest increases in RES electricity generation, developed with support from the RRF are expected in Poland (42.5 TWh), Hungary (20.7 TWh) and Spain (16.1 TWh)
- the largest area covered by energy efficient renovations supported by the RRF are expected in France (almost 140 million m2), Poland (almost 90 million m2) and Spain (almost 55 million m2)
- investments in energy networks (electricity transmission and distribution gris, cross-border electricity infrastructure projects) are concentrated in the Central and Eastern Europe
Examples of energy reforms include
Energy Efficiency
Introducing majority voting, instead of unanimity, to approve building renovations in communities of owners to accelerate approvals (Spain). One-stop shops (Bulgaria, Czechia, Portugal, Romania). Developing an energy poverty observatory (Portugal).
Renewable energy
Reforms to accelerate and simplify permitting (in 19 EU countries), reform of the offshore and onshore Wind Energy Act to accelerate deployment (Germany). Calendar to phase-out coal and lignite power plants by 2032, in parallel with a significant increase of RES capacity – 3 500 MW – by 2026 (Romania).
Grid development
Accelerating and simplifying permitting procedures to construct (Sweden). Cable pooling reform, allowing multiple installations to share a single grid connection, leading to efficient grid usage, reduction of connection bottlenecks, and lower connection costs (Poland). Regulatory framework reform on electricity networks, energy communities, electricity trade promoting self-consumption (Latvia).
Examples of energy investments include
Energy Efficiency
Support for MaPrimeRenov’, energy renovation of 1.45 million households, including over 20 000 social dwellings (France). Renovation of 5 400 m² of public buildings to achieve at least a 30% reduction in primary energy use and an energy rating of at least B (Ireland). Support for the energy renovation of 3.2 million m2 of multi-family apartment buildings and 2.3 million m2 of public buildings (Romania).
Renewable energy
Investments in agro-voltaic systems with a total capacity of 2.28 GW (Italy). Installed 171 000 solar water heating systems and heat pumps for households, including 34 000 energy poor households (Greece). Support for large-scale renewable energy projects in the demonstration phase (Finland).
As the centrepiece of the NextGenerationEU plan, the Recovery and Resilience Facility (RRF) has evolved from a post-pandemic recovery tool into a strategic engine for European energy independence. Through the REPowerEU initiative, EU countries have integrated dedicated energy chapters into their national plans, utilising RRF grants and loans to fast-track the phase-out of Russian fossil fuels.
This transition goes beyond shifting suppliers; it is a fundamental redesign of how Europe generates, distributes, and consumes energy. By focusing on the ‘invisible’ work of the transition, upgrading ageing infrastructure, de-bottlenecking power grids, and scaling industrial fuel-switching, REPowerEU is delivering the strategic investments needed to permanently lower the ‘fossil fuel tax’ on our economy and eliminate our systemic over-reliance on imported gas.
A regional approach to structural resilience
The transition is happening on the ground across every EU country, with RRF capital being channelled into high-impact projects that secure our collective energy future.
Integrating the Mediterranean and Southern power corridors: In Southern Europe, RRF investments are addressing the physical constraints of our energy market. By financing major subsea interconnectors in Italy and ‘Hydrogen Valleys’ in Spain, the Facility is enabling the flow of renewable electrons and decarbonised feedstocks. In Greece, this is complemented by a massive rollout of rooftop solar and storage, reducing grid stress and tackling energy poverty. These investments ensure that Southern energy potential is no longer stranded but integrated into the EU’s industrial heartlands.
Connecting the North Sea to the industrial core: In Northern Europe, the RRF is de-risking the massive capital expenditures required for offshore energy. In Germany, the Facility supports essential ‘highways’ like BorWin6 and DolWin4, which connect North Sea wind farms to the high-demand industrial South.
The Eastern grid and industrial modernisation: To move away from coal and gas ‘backup’ in Central and Eastern Europe, the grid must be fit for a decentralised era. EU countries are allocating significant RRF capital to modernise distribution networks in countries like Poland, removing the technical bottlenecks that have historically kept the region dependent on fossil fuels. Simultaneously, in Romania, the RRF is funding the first generation of green hydrogen electrolysers to decarbonise 'hard-to-abate' sectors like steel and chemicals, where electricity alone cannot replace gas.
The continental efficiency wave: Across Western Europe, the focus has shifted to permanent demand reduction. Through large-scale schemes in EU countries like France, the RRF is subsidising the direct replacement of gas boilers with high-efficiency heat pumps and deep building renovations. This is a long-term strategy to shrink the European gas market from the inside out, making energy security a permanent feature of our housing and industrial stock.
By modernising the networks, homes, and industries we already have, the RRF is addressing the root causes of energy price volatility and building a more resilient, integrated European Energy Union.
The cohesion policy funds are the second largest source of EU funding for energy.
The resources allocated for energy priorities, across all cohesion policy funds, amount to €43.7 billion – including support to environmentallyfriendly production processes and resource efficiency as well as the changes made during the comprehensive mid-term review.
Overall, at EU level, the €43.7 billion allocated for energy represents 16% of the total budget of the cohesion policy funds. There are significant differences between EU countries: while Ireland and Luxembourg allocate approximately 30% of their cohesion policy funds to energy, Bulgaria allocated only 8% to energy.
5 new priorities were proposed for the mid-term review, including a new specific objective on energy, focussed on promoting energy interconnectors and related transmission, distribution, storage and supporting infrastructure, protection and safeguard of critical energy infrastructure, charging infrastructure for sustainable mobility.
While total cohesion policy funding has remained unaffected, EU countries have reallocated €34 billion (approximately 10% of total cohesion policy funds) to the new priorities.
About €1.2 billion have been reallocated to the new energy priority, mobilised across 11 EU countries (Germany, Greece, Spain, Italy, Lithuania, Latvia, Malta, Poland, Slovenia and Slovakia), focussing on the development of energy interconnectors and supporting infrastructure (including charging infrastructure).
The planned investments target cross border power lines, including submarine and underground interconnections as well as supportive infrastructure needed to increase interconnection across EU countries. Other investments will focus on the protection of critical energy infrastructure, the installation of charging points for electric vehicles, alternative fuel infrastructure, and the development of storage. These investments will contribute to improving security of supply and to a better integration of renewable energy sources into energy systems, thus lowering energy prices, reducing greenhouse emissions and strengthening competitive edge.
Malta is the EU country which proposed the highest share of funds reallocated for energy priorities over the total of the reallocated funds (88.3%), focusing to interconnectors.
Italy is the EU country which reallocated the highest amount for energy priorities (€396 million), and introduced more changes in the programmes, amending 7 programmes (regional and national programmes).