STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach to joint energy purchasing across the EU as the bloc grapples with significantly increased fuel costs. She explained that a new task force would coordinate energy demand among member states and assign a market operator to oversee collective procurement efforts. This initiative aims to move the EU beyond its existing system of matching individual buyers with sellers. Von der Leyen introduced this measure during a European Parliament debate ahead of the European Council meeting scheduled for October 15 and 16.
According to Von der Leyen, gas prices in Europe have surged by 140% since the end of February, while diesel prices have doubled. She highlighted that rising costs for imported fossil fuels have added approximately €100 billion to Europe’s energy bill without increasing the total energy received. The European Commission plans to extend a temporary state aid framework to support industrial sectors under the greatest pressure. Additionally, targeted assistance for vulnerable households is on the table, with energy voucher schemes in France and Romania cited as examples of this approach.
The proposal for joint procurement is accompanied by measures aimed at energy supply and refining. On October 2, G7 countries agreed to release 100 million barrels through the International Energy Agency over four months, with a focus on a significant diesel release during the initial 20 days. The European Commission will also grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that this step would help mitigate additional costs during the current market strain period.
Strategic focus shifts toward supply coordination
The European Commission plans to initiate a strategic dialogue with European refineries to address issues related to costs and supply requirements. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen emphasized that the dialogue would also encompass supply considerations necessary for defense. She also pointed out the significant disparities among national energy markets, noting that electricity prices can vary from about €145 per megawatt-hour in one member state to roughly €70 in another, depending on the energy mix.
The new joint procurement effort builds on earlier EU initiatives for collective energy buying, introduced after Russia sharply reduced gas supplies in 2022. During that period, the EU pooled demand and united European buyers to improve supply security. Von der Leyen highlighted that Russian gas made up 45% of EU imports at that time, but the share has since fallen to 12%. The Commission’s goal is to eliminate Russian gas imports entirely by the end of 2026, aligning with its current energy policy.
Electrification remains a core focus of EU strategy
Von der Leyen connected the short-term measures to the EU’s longer-term goal of increasing domestic clean electricity generation. She stated that more than 70% of EU electricity now comes from renewable and nuclear sources. Last year, wind and solar power produced more electricity than all fossil fuels combined, and Europe added over 80 gigawatts of renewable capacity. However, projects equal to 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 plan aims to double this share by 2040. Von der Leyen indicated that greater electrification could reduce annual fossil fuel imports by as much as €260 billion. The Commission intends to implement additional measures in the coming months to facilitate this transition. EU leaders are also expected to discuss rising energy prices, supply security, and broader economic concerns at their meeting scheduled for October 15 and 16.