STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach to collective energy purchasing within the EU as the bloc faces dramatically increasing fuel expenses. She outlined plans for a new task force to coordinate energy demand across member states and designate a market operator responsible for managing joint procurement efforts. This initiative aims to take the EU beyond its current model of matching individual buyers and sellers. Von der Leyen announced these measures during a European Parliament session ahead of the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, gas prices have surged by 140% since late February, with diesel prices doubling. She noted that higher costs for imported fossil fuels have added roughly €100 billion to Europe’s energy bill without increasing the overall energy supply. The European Commission intends to extend a temporary state aid framework targeted at industrial sectors under the greatest pressure, while also providing targeted support to vulnerable households. As examples of this approach, she cited energy voucher schemes implemented in France and Romania.
Alongside the procurement proposal, the Commission is introducing measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over four months, with a significant portion of diesel to be released in the first 20 days. Additionally, the EU will grant exporters an extra year of flexibility under its methane regulations. Von der Leyen stated that this step would help reduce additional costs during the ongoing market tensions.
Enhanced focus on supply coordination efforts
A strategic dialogue with European refineries is set to be initiated by the European Commission to address supply and cost concerns. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will oversee these discussions. Von der Leyen emphasized that the dialogue would also cover defense-related supply needs. She pointed out the significant disparities in energy markets among member states, noting that electricity prices can vary from approximately €145 per megawatt-hour in one country to about €70 in another, depending on the energy mix.
The new joint EU energy procurement effort builds upon measures introduced after Russia sharply reduced gas supplies in 2022. During that period, the EU pooled demand and coordinated among European buyers to better secure energy supplies. Von der Leyen highlighted that Russian gas made up 45% of EU imports at that time, but this share has since declined to 12%. The European Commission’s goal is to eliminate Russian gas imports entirely by the end of 2026 under its current energy policy.
The importance of electrification remains a key element in EU strategy
Von der Leyen connected the short-term measures to the EU’s broader long-term strategy of expanding domestic clean electricity generation. She pointed out that over 70% of electricity in the EU is now produced from renewable sources and nuclear power. Last year, wind and solar energy generated more electricity than all fossil fuels combined. During that period, Europe added over 80 gigawatts of renewable capacity, yet projects totaling roughly six times that amount are still waiting for grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to roughly double this share by 2040. Von der Leyen indicated that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. Additional measures to support this transition are expected in the coming months. EU leaders are also scheduled to discuss rising energy prices, supply security, and broader economic challenges at their upcoming meeting on October 15 and 16.