STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified system for collective EU energy procurement amid soaring fuel prices. She announced that a newly formed task force would consolidate energy demand across member states and designate a market operator to oversee joint buying efforts. This initiative aims to advance the EU beyond its existing method of matching buyers with sellers. Von der Leyen introduced this proposal during a European Parliament session preceding the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, gas prices in Europe have surged by 140% since late February, with diesel prices doubling. She highlighted that increased costs for imported fossil fuels have added approximately €100 billion to Europe’s energy bill without a corresponding rise in energy supply. The European Commission intends to extend a temporary state aid framework for the most affected industrial sectors and supports targeted assistance for vulnerable households. As an example of this approach, she referenced energy voucher programs in France and Romania.
Alongside the procurement proposal, the European Commission is implementing measures related to energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels of oil through the International Energy Agency over four months, with a focus on a significant diesel release during the initial 20 days. Additionally, the Commission will grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that this step would help lower additional costs during the ongoing market pressures.
Supply coordination initiatives take center stage
A strategic dialogue between the European Commission and European refineries will be initiated to address supply and cost challenges. The talks will be led by Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius. Von der Leyen mentioned that the dialogue would also encompass supply requirements for defense purposes. She pointed out the significant disparities in national energy markets, with electricity prices in some member states reaching approximately €145 per megawatt-hour, compared to about €70 elsewhere, depending on the energy mix.
The newly established joint EU energy procurement effort builds upon previous measures introduced after Russia sharply cut gas supplies in 2022. At that time, demand pooling and collective buying helped European countries secure energy supplies more effectively. Von der Leyen noted that Russian gas once made up 45% of EU imports, but this share has now decreased to 12%. The EU’s current energy policy aims to eliminate Russian gas imports entirely by the end of 2026.
Electrification remains a key component of the EU’s strategy
Von der Leyen linked the immediate response to the EU’s long-term transition towards domestically produced clean electricity. She highlighted that over 70% of EU electricity is now generated from renewable sources and nuclear energy. Last year, wind and solar power produced more electricity than all fossil fuels combined. During that period, Europe added more than 80 gigawatts of renewable capacity. However, projects with roughly six times that capacity are still awaiting grid connections.
Currently, electricity accounts for less than 25% of final energy consumption within the EU. The Commission’s electrification action plan aims to nearly double this figure by 2040. Von der Leyen indicated that increasing electrification could reduce annual fossil fuel imports by as much as €260 billion. The European Commission plans to introduce additional measures in the coming months to support this transition. EU leaders are also scheduled to discuss rising energy costs, supply security, and broader economic challenges at their October 15 and 16 meeting.