STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach to joint energy procurement across the EU as fuel prices soar. She indicated that a new task force would consolidate energy demand among member states and designate a market operator to oversee collective buying efforts. This initiative seeks to advance beyond the existing framework of individual buyer-seller matching. Von der Leyen announced this strategy during a European Parliament debate ahead of the European Council meeting scheduled for October 15 and 16.
Von der Leyen highlighted that gas prices have surged by 140% since late February, with diesel prices doubling. She noted that increased costs for imported fossil fuels have added around €100 billion to Europe’s expenses, without a corresponding rise in energy supply. The European Commission intends to extend a temporary state aid framework targeting sectors under significant pressure, while also supporting targeted assistance for vulnerable households. She pointed to energy voucher schemes in France and Romania as examples of this approach.
Alongside the procurement proposal, the Commission is coordinating measures related to 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 focus on a substantial 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 explained that this move aims to minimize additional costs amid current market pressures.
Focus shifts to supply coordination
The European Commission plans to initiate a strategic dialogue with European refineries to address issues related to costs and supply. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen stated that the dialogue will also consider supplies necessary for defense purposes. She also acknowledged significant disparities across national energy markets, noting that electricity prices can vary from approximately €145 per megawatt-hour in one member state to around €70 in another, depending on the energy mix.
This new joint procurement effort builds on previous EU measures for energy purchasing implemented after Russia sharply curtailed gas supplies in 2022. During that period, the EU pooled demand and united European buyers to help secure energy sources. Von der Leyen noted that Russian gas made up 45% of EU imports at that time, a figure now reduced to 12%. The Commission’s goal is to eliminate Russian gas imports entirely by the end of 2026 under its current energy strategy.
Electrification remains integral to EU’s strategy
Von der Leyen also connected the immediate response to the EU’s longer-term plan to increase reliance on domestically produced clean electricity. She emphasized that over 70% of EU electricity currently stems from renewable and nuclear sources. Last year, wind and solar generated more electricity than all fossil fuels combined, with Europe adding over 80 gigawatts of renewable capacity during that time. Nevertheless, projects with capacity roughly six times larger are still awaiting grid connections.
At present, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to nearly double this share by 2040. Von der Leyen stated that expanding electrification could potentially reduce annual fossil fuel imports by as much as €260 billion. Further initiatives to support this transition are expected in the coming months. EU leaders will also discuss rising energy costs, supply security, and broader economic challenges at their meetings scheduled for October 15 and 16.