European Union members facing a gas shortfall are weighing how to cut consumption while Russia’s pressure to turn off gas supplies remains a constant risk. This has pushed Brussels to consider loosening some environmental goals that have guided policy in recent years. The European Commission is evaluating a shift that could replace some gas use with coal in the plan to address the energy crunch. Public subsidies could help restart coal-fired plants, making mineral energy more affordable. The move could breathe new life into power plants in Asturias and threaten the region’s key industries. Restarting thermal plants would raise demand for CO2 allowances and likely push prices higher. For manufacturers like ArcelorMittal, which already worry about energy-driven downtime, a fresh entitlement spike could be crippling.
The Commission has drafted a plan titled Save gas for a safe winter, with a decision expected this Wednesday. It calls for immediate coordinated measures across Europe or the use of gas capacity auctions to curb consumption, such as capping air conditioning in public buildings and shopping centers. Temporary reductions in industrial production would follow, with the intent to minimize gas use while still leveraging all viable alternatives to gas.
Although accelerating the shift to renewable energy remains a priority, the draft plan notes that all flexible tools in the industrial emissions directive and the environmental impact assessment directive may be temporarily mobilized. Coal plants that restart to offset Russian gas cuts could be exempt from strict emissions targets. The plan acknowledges that high gas consumption will impact air quality, but argues these steps are necessary for security of supply.
Germany, Austria, and the Netherlands have already signaled plans to lift coal-fired electricity generation. In some cases, higher coal use follows from elevated gas prices, even when coal itself is not shielded by protections. Spain has seen a modest rebound in coal use as heat waves drive energy demand. Data from Red Eléctrica shows coal contributing 3.2% of demand in July, up from 2.8% the previous year.
Ecological Transition Minister Teresa Ribera stated in La Nueva España on July 7 that Spain will not revert to the earlier energy path and that Red Eléctrica has been asked to assess whether an extension is needed. This concerns coal plants such as As Pontes and Soto de Ribera that have sought extensions beyond the closure permits.
The Commission’s plan could extend a second life to Asturias’ coal plants, but that option may come at a heavy cost for the region’s large industries. Restarting coal units would boost demand for CO2 emissions rights, potentially driving prices higher. A recent environmental report from ArcelorMittal highlighted rising emission costs as a major factor affecting the company’s long-term viability. The multinational notes that persistent high electricity prices could push plant closures in Spain, a scenario it already sees as likely.
Azerbaijan emerges as another route for energy security with expanded EU gas supplies
Brussels has pursued diversification for months, negotiating with other gas producers to reduce dependence on Moscow. An agreement with the United States announced last March aims to lift shipments by 15,000 million cubic meters this year. Norway has also engaged with Egypt and Israel to expand LNG imports, with additional deliveries promised in June. More recently, Azerbaijan entered the mix as a reliable partner. An announcement from Baku indicates the republic will raise EU supplies to at least 20,000 million cubic meters annually, up from 8,100 million in 2021. The International Energy Agency urged Europeans to curb gas use further, warning that current measures may be insufficient if Russia restarts flows via Nord Stream 1 this summer. The IEA chief Fatih Birol outlined five actions: create gas auction platforms to cut industry demand; ease electricity generation by temporarily relying on coal, oil, and nuclear power; boost coordination among energy operators to smooth demand peaks; tighten household and public cooling standards; and harmonize contingency plans at national and European levels. These steps are meant to lessen the risk of cuts during winter when vulnerable groups would feel the impact most.