The European Commission plans to impose a complete ban on the import of Russian oil and natural gas. The construction of a unified national electricity market is accelerating
（2025/06/16—2025/06/22）
Author: Shu-Xin Zhang
International Energy News
1. The European Commission plans to impose a complete ban on the import of Russian oil and natural gas
On June 17, the European Commission put forward a legislative proposal to phase out, by the end of 2027, the direct or indirect import of piped natural gas (PNG) and liquefied natural gas (LNG) from Russia, while completely halting the import of Russian oil. Meanwhile, it proposed banning the import of Russian natural gas under new contracts starting from January 1, 2026, and all imports under long-term contracts would be fully ceased by the end of 2027. This proposal is a further advancement of the energy roadmap adopted by the European Commission last month, aiming to eliminate the EU's dependence on Russian fossil fuels. Following the proposal's introduction, relevant officials from Hungary and Slovakia claimed that it would threaten their national sovereignty and energy security. The Austrian Ministry of Energy stated that the EU should keep open the possibility of resuming imports of Russian natural gas after the conflict in Ukraine ends.
2. Finland constructs world's largest sand battery, revolutionizing thermal energy storage and energy supply models
On June 19, Finland announced the completion and commissioning of the world's largest sand battery (sand-based thermal energy storage) in Pornainen, Finland. The project boasts a thermal power output of 1 MW and a storage capacity of 100 MWh, making it ten times larger than the sand battery introduced in 2022. Standing approximately 13 meters tall and 15 meters wide, the sand battery in Pornainen utilizes around 2,000 tons of crushed soapstone, a byproduct of fireplace production, as its heat storage medium. It achieves a round-trip energy efficiency of about 80% and can store heat at temperatures up to 400℃. Designed to last over 30 years, the system can meet nearly a week's worth of local energy demand during winter, reducing annual carbon dioxide emissions by approximately 160 tons. Additionally, it promotes the phase-out of oil fuels in the local heating system and cuts wood chip consumption by about 60%.
3. Republicans in the U.S. Senate seek to eliminate $7,500 tax credit for electric vehicles
On June 16, Republicans in the U.S. Senate introduced a tax and budget bill that is set to deal a significant blow to the electric vehicle (EV) market. The bill stipulates that 180 days after it is signed into law, the $7,500 tax credit for the sale of new electric vehicles will be eliminated. Additionally, tax credits for leased electric vehicles produced outside North America will be immediately revoked. This move stands in stark contrast to the policies of the former U.S. President. During his tenure, he vigorously encouraged the development of electric vehicles and renewable energy, viewing them as crucial tools for combating climate change and reducing greenhouse gas emissions. He actively promoted the adoption of electric vehicles through preferential policies such as tax credits, aiming to steer the United States towards a green energy transition. The bill proposed by the Republicans not only reflects the partisan divide on energy policy but has also sparked concerns within the industry. If passed, the bill could dampen consumer enthusiasm for purchasing electric vehicles, slow down the growth of the U.S. EV market, and subsequently impact the development of the entire new energy vehicle industry chain.
Domestic energy news
1. The construction of a unified national electricity market is accelerating
The unified national electricity market serves as a vital component of the broader unified national market and a key pillar for driving energy transition and optimizing the allocation of electricity resources. According to the "Notice on Deepening the Market-Oriented Reform of Feed-in Tariffs for New Energy to Promote High-Quality Development of New Energy," starting from June 1 this year, newly commissioned new energy power generation projects will all participate in market trading, with electricity prices determined by the market. The comprehensive integration of new energy into the market breaks down geographical barriers, facilitates the expansion of cross-provincial and cross-regional trading, and is conducive to the optimal allocation of electricity resources nationwide. As a result, the construction of the electricity market is further gaining momentum. Since the implementation of the new round of power system reform as deployed by the CPC Central Committee and the State Council, China has steadily and orderly advanced the construction of its electricity market. A pattern featuring multiple competitive entities has initially taken shape, with the scale of market-based transactions expanding year by year. The market's ability to allocate resources has continuously improved, and its role has become increasingly prominent.
2. Installed capacity of new energy in Inner Mongolia reaches 140 million kilowatts
As of the end of May this year, the total installed capacity of new energy in the Inner Mongolia Autonomous Region had reached 143.09 million kilowatts, accounting for 52% of the region's total power installed capacity. This makes Inner Mongolia the first provincial-level region in China to surpass 140 million kilowatts in new energy installed capacity, maintaining its leading position in the country's new energy development. It is reported that from January to May this year, the electricity generated from new energy sources in Inner Mongolia amounted to 124.7 billion kilowatt-hours, a year-on-year increase of 39.5%, accounting for 36% of the region's total electricity generation, a year-on-year rise of 9 percentage points. Among this, 43 billion kilowatt-hours of new energy were transmitted outside the region, marking a 62% year-on-year increase, while 81.7 billion kilowatt-hours were locally consumed, representing a 30.3% year-on-year increase. The responsibility weight for the consumption of non-hydro renewable energy electricity reached 36.8%. It is introduced that the Inner Mongolia Autonomous Region will continue to leverage its resource advantages, accelerating the construction of key projects such as large-scale wind and photovoltaic bases in "desert, gobi, and barren land" areas, projects integrating sand prevention and control with wind and photovoltaic power, and photovoltaic assistance programs. The region aims to ensure an additional 40 million kilowatts of new energy installed capacity throughout the year, pushing the total new energy scale beyond 170 million kilowatts and the volume of new energy electricity transmitted outside the region to exceed 100 billion kilowatt-hours.
3. China Exports Coking Coal to Indonesia for the First Time
This May, at least three batches of coking coal were exported from China to the Sulawesi region of Indonesia, a rather uncommon occurrence. As is widely known, coking coal, a core raw material for steel production, has traditionally been a major import for China. For the most part, China has been a buyer of metallurgical coal (coking coal), importing substantial quantities annually from Russia and Mongolia. This time, however, China has taken on the role of seller, catching many by surprise. Industry insiders revealed that this export initiative carries dual significance. Firstly, it serves as a trial run to assess the feasibility of exporting Chinese coking coal to the Indonesian market. Secondly, it sends a message to traditional Australian and Indian suppliers, indicating that Indonesian buyers now have more options. Nevertheless, soaring transportation costs, coupled with price competition from Russian and Mongolian coking coal, may hinder this type of export from becoming a regular occurrence. After all, according to imported coal statistics for 2025 (projected or based on context as the year is future-oriented; if referring to past data it should be adjusted accordingly), China remains Indonesia's primary destination for coal exports. This export of Chinese coking coal is not merely a straightforward trade transaction but rather a manifestation of subtle changes in the regional supply landscape. It reflects shifts in steel industry demand, diversification of supply channels, and a new round of dynamic adjustments in the global steel market.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
