LONDON (Reuters) -Gas demand in the European Union is expected to fall by 7% by 2030 as renewable energy and electrification increase, a report by thinktank Ember showed on Tuesday. BY THE NUMBERS
EU Gas Demand Projected to Decrease by 7% by 2030, Ember Report
LONDON (Reuters) -Gas demand in the European Union is expected to fall by 7% by 2030 as renewable energy and electrification increase, a report by thinktank Ember showed on Tuesday.
BY THE NUMBERS
Ember analysed EU member states' national energy plans which showed gas demand is set to fall by 7% from 326 billion cubic metres (bcm) in 2023 to 302 bcm in 2030. Gas demand has already dropped by 19% to 326 bcm in 2023 from 404 bcm in 2019.
WHY IT'S IMPORTANT
The long-term decline in gas demand is at odds with the EU's aim to increase liquefied natural gas import capacity by 54% by 2030 as part of plans to phase out Russian pipeline gas supply.
This could result in over-supply with new gas infrastructuee investments at risk of becoming stranded assets, the report said.
CONTEXT
EU countries aim to double their total wind and solar capacity over the next five years so that renewable energy is on track to generate 66% of all EU electricity by 2030.
The share of electricity in EU final energy demand is expected to rise to 30% by 2030 from 23% currently.
KEY QUOTE
"An electrified economy is where the EU is definitively heading, and any rush to overbuild gas infrastructure will inevitably end in costly stranded assets. Industry stakeholders, investors and policymakers should all take note," said Tomos Harrison, electricity transition analyst at Ember.
(Reporting by Nina Chestney; Editing by Chizu Nomiyama )
