In response to the Russian invasion of Ukraine and further highlighting Europe’s dependence on energy imports, the European Commission released its REPowerEU plan on 17 March 2022. The plan builds upon the Commission’s Fit-for-55 proposals and sets out a detailed pathway to a fast clean energy transition with the hopes of being independent of Russian fossil fuels as early as this year.

The main four pillars of REPowerEU are as follows:

1. Energy savings
2. Diversification of energy sources
3. Acceleration of Europe’s clean energy transition
4. Smart investments to realise the objectives in the Fit-for-55 proposals

In this analysis, the third pillar that is focused on the rapid acceleration of renewable electricity and renewable gas is of most interest as this will likely have an associated impact on the relative Guarantees of Origin markets.