Mr. Gergely Moln?r:

I thank the Deputy for his questions. Let me start with the difference between STEPS and NZE. STEPS is a scenario that relies on the policies that have been stated and are being implemented. We anticipate they are going to determine the broader policy context in the years ahead and, as such, will have a strong influence on the evolution of energy defence. NZE is more of an aspirational scenario in which the world reaches net zero emissions by 2050 and, in a way, the target determines the evolution of energy market defence.

The Deputy asked about energy infrastructure. The most important guiding line should be that any investment in energy infrastructure should be future-proofed. In the case of gas infrastructure, it should be able to integrate low-emission gases, biomethane and e-methane, and should also be capable of being repurposed to service low-emission hydrogen.

The second value principle should be that any infrastructure investment should not create lock-in acts for emissions, and as such it needs to be in a way flexible.

On the demand reductions that we have seen in 2022, it is important to know that some of that demand reduction has not necessarily been driven by policies, rather it has been driven by the very high prices leading to demand distribution in industry, for instance. There are a number of factors: policy actions; gas demand and saving measures; demand disruption due to high levels of prices rising; and affordability issues among the most vulnerable households. It is quite a mixed bag. Looking ahead, we see there is an urgent need to double down on efforts related to what we call structural, demand-led action measures, which includes the more rapid deployment of renewables. Here we believe that some administrative processes could probably be eased in order to reduce timelines of projects. There is also a greater need to focus on grids that can facilitate the integration and better utilisation of renewable energy sources. There is also a clear need for a stronger push in energy efficiency and the electrification of heat. All of those measures are needed and need to be accelerated over the medium term.

I might have missed some of the questions. Please feel free to reiterate them if I have not addressed any.