STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified system for joint energy purchases within the EU, as the bloc faces significantly higher fuel prices. She announced that a new task force would consolidate energy demand across member states and designate a market operator responsible for managing collective procurement efforts. This initiative aims to evolve beyond the current model of simply matching buyers with sellers. Von der Leyen made the announcement during a European Parliament session ahead of the European Council meeting scheduled for October 15 and 16.
She pointed out that European gas prices have surged 140% since the end of February, with diesel prices doubling. She explained that higher costs for imported fossil fuels have added roughly €100 billion to Europe’s expenditure, despite no increase in the energy received. The European Commission intends to extend a temporary state aid framework aimed at industrial sectors under significant pressure. Additionally, it supports targeted assistance for vulnerable households, citing examples such as energy voucher programs in France and Romania.
Alongside the procurement proposal, the Commission is implementing measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels over four months through the International Energy Agency, with a significant diesel release planned during the first 20 days. The European Commission will also grant exporters an extra year of flexibility regarding EU methane regulations. Von der Leyen stated this step would help mitigate additional costs during the ongoing market stress.
Supply coordination efforts gain momentum
The European Commission will initiate a strategic dialogue with European refineries to address issues related to costs and supply requirements. Energy Commissioner Dan Jørgensen and Defense Commissioner Andrius Kubilius will lead these discussions. Von der Leyen indicated that the dialogue would also encompass supply needs for defense purposes. She also highlighted notable disparities across national energy markets, with electricity costs varying from around €145 per megawatt-hour in one member state to roughly €70 in another, depending on each country’s energy mix.
The new joint energy procurement task force builds on measures introduced after Russia sharply reduced gas supplies in 2022. At that time, the EU pooled demand to unify European buyers and secure supplies more effectively. Von der Leyen noted that Russian gas represented 45% of EU imports then, but the share has now decreased to 12%. The Commission’s goal is to eliminate Russian gas imports entirely by the end of 2026 as part of its current energy policy.
Electrification remains key to EU’s long-term strategy
Von der Leyen also connected the immediate response to the EU’s broader shift toward increasing domestic clean electricity generation. She stated that over 70% of EU electricity now derives from renewable and nuclear sources. Last year, wind and solar power produced more electricity than all fossil fuels combined, with Europe adding over 80 gigawatts of renewable capacity during that period. Nonetheless, projects with a capacity approximately six times larger are still awaiting grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification action plan aims to double that share by 2040. Von der Leyen emphasized that boosting electrification could reduce annual fossil fuel imports by as much as €260 billion. In the upcoming months, the Commission intends to implement further measures to support this transition. EU leaders are also expected to address rising energy prices, supply security, and wider economic concerns during their meetings on October 15 and 16.