STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more centralized framework for joint energy purchasing within the EU, amid soaring fuel costs. She explained that a new task force would consolidate energy demands across member states and designate a market operator to oversee coordinated procurement efforts. This initiative aims to advance the EU beyond its existing system of matching individual buyers with sellers. Von der Leyen unveiled this plan during a debate in the European Parliament prior to the European Council’s scheduled meeting on October 15 and 16.
According to von der Leyen, gas prices in Europe have surged by 140% since the end of February, and diesel prices have doubled. She emphasized that increased costs for imported fossil fuels have added roughly €100 billion to Europe’s energy bill, without boosting the amount of energy supplied. The European Commission intends to extend a temporary state aid framework targeted at industrial sectors under significant pressure and is also supporting specific assistance for vulnerable households. As examples of this approach, she highlighted energy voucher programs in France and Romania.
In addition, the Commission is coupling its procurement proposal with measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over a four-month span, with a significant diesel release planned during the initial 20 days. The EU will also provide exporters with an extra year of flexibility under methane regulations. Von der Leyen stated that this move would help lower additional costs during the current period of market instability.
Focus shifts toward supply coordination
The European Commission is set to initiate a strategic dialogue with European refineries to address issues related to costs and supply needs. This initiative will be led by Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius. Von der Leyen mentioned that discussions would also encompass supplies necessary for defense purposes. She pointed out significant disparities among national energy markets, noting that electricity costs can vary from about €145 per megawatt-hour in some member states to roughly €70 in others, depending on their energy mix.
The new energy procurement task force builds on previous joint buying initiatives introduced after Russia sharply curtailed gas supplies in 2022. During that period, the EU pooled demand and coordinated efforts among European buyers to secure energy supplies. Von der Leyen highlighted that Russian gas once represented 45% of EU gas imports, but this share has now decreased to 12%. The Commission’s goal is to eliminate Russian gas imports entirely by 2026 as part of its current energy strategy.
Electrification remains a key element of EU strategy
Von der Leyen linked the short-term measures to the EU’s broader long-term objective of increasing domestic clean electricity generation. She stated that over 70% of electricity in the EU now originates from renewable and nuclear sources. Last year, wind and solar produced more electricity than all fossil fuels combined. During this period, Europe added more than 80 gigawatts of renewable capacity, yet projects with a capacity roughly six times larger 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 double this share by 2040. Von der Leyen pointed out that greater electrification could cut fossil fuel imports by as much as €260 billion annually. The EU plans to introduce additional measures to facilitate this transition in the coming months. Leaders will also discuss issues related to rising energy prices, supply security, and broader economic challenges at their upcoming meeting on October 15 and 16.