REPowerEU: A New Energy Landscape for Europe
In March 2022, the European Commission published "REPowerEU," a blueprint of its planned changes to the regulation of European Union energy markets in direct response to the Russian invasion of Ukraine in February 2022. At its core, REPowerEU's main objective regarding the gas market is to diversify supply in order to gain independence from Russian gas imports.
The blueprint was supplemented by a detailed REPowerEU plan in May 2022. In furtherance of its goal to diversify supply, the European Union has also announced closer cooperation with the United States through the establishment of a joint Task Force on Energy Security and an EU Energy Platform for the voluntary common purchase of gas, liquefied natural gas, and hydrogen by Member States and selected other European countries.
These actions will result in an irreversible paradigm shift in the regulation of EU energy markets that will impact prevailing business models, commercial dealings, and investment strategies in the European Union. It will also have a profound impact on global energy markets.
Like any major market transformation, the irreversible paradigm shift will challenge affected markets and their stakeholders, and it will also provide unparalleled opportunities for those who are able to adapt.
This White Paper is the first in a series of publications where we will address the various legal and commercial developments relating to REPowerEU and has a particular focus on gas. As such, it is intended to set the stage for what is to come.