Costly coal dumped from IEA's plan for EU to wean off Russia's dependence

New Delhi, March 3 International Energy Agency (IEA) on Thursday released a 10-point plan for the European Union to wean off its dependence on Russian gas.

The move comes as a way to ease the energy crisis that may come due to Russian invasion of Ukraine.

The IEA's plan for the EU recommends accelerated deployment of renewable energy such as wind and solar. The plan highlights that depending on existing coal infrastructure will be extremely costly and not in line with EU's climate objectives.

Fatih Birol, IEA Executive Director, released the plan via virtual press conference along with the French Minister for Ecological Transition Barbara Pompili and European Commissioner for Energy Kadri Simson.

Birol highlighted that energy efficiency, increasing gas storage requirement, accelerated wind and solar energy deployment, temporary use of existing low carbon infrastructure, and reducing wasteful consumption, could reduce Russian gas imports by one-third within this year.

He further stated that continued investments and cutting red tape in renewable energy deployment could help the EU reach its decarbonisation goal in accordance with EU's climate policy.

IEA's analysis acknowledged that relying on coal-fired power plants and oil as substitutes for Russian gas imports would not only go against the EU's green policy but also prove to be extremely costly.

Financing new coal projects has become increasingly difficult as financial institutes and banks are increasingly moving away from coal projects due to financial and reputational risk.

IEA's recent report on methane highlighted how coal mines are now the single largest source of methane emissions from the power sector.

At the press meet, Barbara Pompili, French Minister for Ecological Transition, stressed the importance of having long-term clean energy measures alongside short-term diversification.

"More than ever, getting rid of Russian fossil fuels and of fossil fuels in general, is essential... Each additional wind turbine or solar panel in Europe is a step forward for our energy independence."

As Russia-Ukraine conflict intensifies and extends, global commodity prices have skyrocketed. Highlighting the need for countries to move towards low-carbon sources such as wind and solar as a way for energy independence.

German Finance Minister Christian Lindner called "renewable energy is freedom energy" while supporting Germany's new pledge to reach 100 per cent renewable electricity by 2035.