IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2607.21048.html

Accelerating fossil gas independence in Europe

Author

Listed:
  • Lukas Franken
  • Iegor Riepin
  • Tom Brown

Abstract

Recent price shocks have prompted calls to curb Europe's dependence on fossil gas imports, but the cost of this goal, and the consumer protection it affords, remain uncertain. Here we address this gap by imposing constraints on fossil gas supply in a European energy system model that co-optimises abatement across all gas uses at high spatio-temporal resolution. Cutting import reliance proves economically compelling: through savings in power generation and low-temperature heat in industry and buildings, Europe can halve its natural gas consumption for 16bnEUR/a, aligning demand with the continent's production capacity of 200 bcm. This extra system cost is comparable to what consumers spend today on a 2 EUR/MWh rise in gas import prices. However, this sovereignty alone does not shield consumers from global gas price volatility: we find that, even at a small share of the mix, gas remains dominant in shaping the marginal electricity price, leaving consumers exposed without additional policy measures.

Suggested Citation

  • Lukas Franken & Iegor Riepin & Tom Brown, 2026. "Accelerating fossil gas independence in Europe," Papers 2607.21048, arXiv.org.
  • Handle: RePEc:arx:papers:2607.21048
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2607.21048
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jessica Jewell & Vadim Vinichenko & David McCollum & Nico Bauer & Keywan Riahi & Tino Aboumahboub & Oliver Fricko & Mathijs Harmsen & Tom Kober & Volker Krey & Giacomo Marangoni & Massimo Tavoni & Det, 2016. "Comparison and interactions between the long-term pursuit of energy independence and climate policies," Nature Energy, Nature, vol. 1(6), pages 1-9, June.
    2. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "A meta-analysis on the price elasticity of energy demand," Energy Policy, Elsevier, vol. 102(C), pages 549-568.
    3. Nikas, Alexandros & Frilingou, Natasha & Heussaff, Conall & Fragkos, Panagiotis & Mittal, Shivika & Sampedro, Jon & Giarola, Sara & Sasse, Jan-Philipp & Rinaldi, Lorenzo & Doukas, Haris & Gambhir, Aja, 2024. "Three different directions in which the European Union could replace Russian natural gas," Energy, Elsevier, vol. 290(C).
    4. M. Millinger & F. Hedenus & E. Zeyen & F. Neumann & L. Reichenberg & G. Berndes, 2025. "Diversity of biomass usage pathways to achieve emissions targets in the European energy system," Nature Energy, Nature, vol. 10(2), pages 226-242, February.
    5. Oliver Ruhnau & Clemens Stiewe & Jarusch Muessel & Lion Hirth, 2023. "Natural gas savings in Germany during the 2022 energy crisis," Nature Energy, Nature, vol. 8(6), pages 621-628, June.
    6. Arlia, Daniela & Hutchinson, John, 2026. "Drivers of electricity prices across households and energy-intensive industries and their importance for the EU’s decarbonisation objectives," Economic Bulletin Boxes, European Central Bank, vol. 1.
    7. Jan Rosenow, 2026. "War in the Middle East hands Europe another chance to break its fossil fuel dependency," Nature Energy, Nature, vol. 11(7), pages 937-938, July.
    8. Dan Tong & Qiang Zhang & Yixuan Zheng & Ken Caldeira & Christine Shearer & Chaopeng Hong & Yue Qin & Steven J. Davis, 2019. "Committed emissions from existing energy infrastructure jeopardize 1.5 °C climate target," Nature, Nature, vol. 572(7769), pages 373-377, August.
    9. Brown, Tom & Neumann, Fabian & Riepin, Iegor, 2025. "Price formation without fuel costs: The interaction of demand elasticity with storage bidding," Energy Economics, Elsevier, vol. 147(C).
    10. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    11. Adrian Odenweller & Falko Ueckerdt, 2025. "The green hydrogen ambition and implementation gap," Nature Energy, Nature, vol. 10(1), pages 110-123, January.
    12. Tom Brown & Fabian Neumann & Iegor Riepin, 2024. "Price formation without fuel costs: the interaction of demand elasticity with storage bidding," Papers 2407.21409, arXiv.org, revised Feb 2025.
    13. Marta Victoria & Kun Zhu & Tom Brown & Gorm B. Andresen & Martin Greiner, 2020. "Early decarbonisation of the European energy system pays off," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    14. Zeyen, Elisabeth & Hagenmeyer, Veit & Brown, Tom, 2021. "Mitigating heat demand peaks in buildings in a highly renewable European energy system," Energy, Elsevier, vol. 231(C).
    15. Zwickl-Bernhard, Sebastian & Creti, Anna & Neumann, Anne, 2026. "The EU’s CBAM trinity in LNG supply: Modeling global trade flows, supply risks and upstream emissions," Energy Economics, Elsevier, vol. 157(C).
    16. Schittekatte, Tim & Momber, Ilan & Meeus, Leonardo, 2018. "Future-proof tariff design: Recovering sunk grid costs in a world where consumers are pushing back," Energy Economics, Elsevier, vol. 70(C), pages 484-498.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adrian Odenweller & Falko Ueckerdt & Johannes Hampp & Ivan Ramirez & Felix Schreyer & Robin Hasse & Jarusch Muessel & Chen Chris Gong & Robert Pietzcker & Tom Brown & Gunnar Luderer, 2025. "REMIND-PyPSA-Eur: Integrating power system flexibility into sector-coupled energy transition pathways," Papers 2510.04388, arXiv.org.
    2. Martin Kittel & Alexander Roth & Wolf-Peter Schill, 2026. "Author Correction: Long-duration electricity storage needs for coping with Dunkelflaute events in Europe," Nature Communications, Nature, vol. 17(1), pages 1-1, December.
    3. Bogdanov, Dmitrii & Ram, Manish & Satymov, Rasul & Lopez, Gabriel & Mensah, Theophilus N.O. & Sadovskaia, Kristina & Breyer, Christian, 2025. "Costs and benefits of highly ambitious energy transition pathways for Europe," Energy, Elsevier, vol. 336(C).
    4. Abuzayed, A., 2025. "From Model Optimality to Market Reality: Do Electricity Markets Support Renewable Investments?," Cambridge Working Papers in Economics 2558, Faculty of Economics, University of Cambridge.
    5. Felix Schmidt & Alexander Roth & Wolf-Peter Schill, 2025. "A mix of long-duration hydrogen and thermal storage enables large-scale electrified heating in a renewable European energy system," Papers 2505.21516, arXiv.org, revised Jun 2025.
    6. Khalili, Siavash & Oyewo, Ayobami S. & Lopez, Gabriel & Kaypnazarov, Kidirbay & Breyer, Christian, 2026. "Technologies, trends, and trajectories across 100% renewable energy system analyses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PC).
    7. Anas Abuzayed, 2025. "From model optimality to market reality: do electricity markets support renewable investments?," Working Papers EPRG2521, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    8. Bogdanov, Dmitrii & Breyer, Christian, 2024. "Role of smart charging of electric vehicles and vehicle-to-grid in integrated renewables-based energy systems on country level," Energy, Elsevier, vol. 301(C).
    9. Olmez Turan, Merve & Gilbert, Ben & Flamand, Tulay, 2025. "How good are weather shocks for identifying energy elasticities? A LASSO-IV approach to European natural gas demand," Journal of Commodity Markets, Elsevier, vol. 39(C).
    10. Bredemeier, Dennis & Khalili, Siavash & Keiner, Dominik & Breyer, Christian, 2026. "Prospects for solar photovoltaics in highly renewable energy transition scenarios towards a dominant future energy source," Renewable and Sustainable Energy Reviews, Elsevier, vol. 235(C).
    11. Billimoria, F. & Simshauser, P., 2026. "Caps-And Floors For Long Duration Storage and Firming: Contract Design Under Risk and Price Asymmetry," Cambridge Working Papers in Economics 2640, Faculty of Economics, University of Cambridge.
    12. Fabian Neumann & Johannes Hampp & Tom Brown, 2025. "Green energy and steel imports reduce Europe’s net-zero infrastructure needs," Nature Communications, Nature, vol. 16(1), pages 1-19, December.
    13. Simshauser, P., 2026. "Coordinating Coal Plant Closures: Transient Strategic Reserves in Transitioning Energy-Only Markets," Cambridge Working Papers in Economics 2627, Faculty of Economics, University of Cambridge.
    14. Rehman, Ubaid ur, 2025. "Evaluation and assessment of clean energy technologies: A bipolar fuzzy BWM-EDAS method for sustainable solution," Renewable Energy, Elsevier, vol. 254(C).
    15. Sorknæs, Peter & Thellufsen, Jakob Zinck & Knobloch, Kai & Engelbrecht, Kurt & Yuan, Meng, 2023. "Economic potentials of carnot batteries in 100% renewable energy systems," Energy, Elsevier, vol. 282(C).
    16. Vogl, Jonathan & Kleinebrahm, Max & Raab, Moritz & McKenna, Russell & Fichtner, Wolf, 2025. "A review of challenges and opportunities in occupant modeling for future residential energy demand," Working Paper Series in Production and Energy 76, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    17. Homaei, Shamim & Roussanaly, Simon & Tomasgard, Asgeir, 2026. "Analysis of short-run and long-run marginal costs of electricity generation in the power market," Energy Economics, Elsevier, vol. 155(C).
    18. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    19. Akhmetov, Yerbol & Fedotova, Ekaterina & Frysztacki, Martha Maria, 2025. "Flattening the peak demand curve through energy efficient buildings: A holistic approach towards net-zero carbon," Applied Energy, Elsevier, vol. 384(C).
    20. Abuzayed, Anas & Hartmann, Niklas, 2022. "MyPyPSA-Ger: Introducing CO2 taxes on a multi-regional myopic roadmap of the German electricity system towards achieving the 1.5 °C target by 2050," Applied Energy, Elsevier, vol. 310(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2607.21048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.