EU Renewable Targets Could Slash Gas Demand by a Quarter by 2030

The European Union could significantly reduce its natural gas demand by 2030 if it meets its renewable energy targets, according to a recent report from the Institute for Energy Economics and Financial Analysis (IEEFA).

The IEEFA estimates that achieving the EU's goals of installing at least 4 million heat pumps, 75 gigawatts (GW) of solar capacity, and 22 GW of wind capacity annually over the next five years could slash gas demand by around a quarter by the end of 2030. This saving is equivalent to double the volume of LNG the EU imports from Qatar.

The report's author, Ana Maria Jaller-Makarewicz, Lead Energy Analyst for IEEFA's Europe team, said that if Europe continues to reduce gas consumption and expand renewables, LNG and pipeline gas imports will decrease, making the continent less vulnerable to external energy crises. However, the EU is still off track to reach its 2030 renewable energy target of 42.5%, which would require an annual average increase of 3.3 percentage points from 2026 to 2030.