STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more centralized framework for joint EU energy purchasing amid soaring fuel costs across the bloc. She outlined plans for a new task force that would consolidate energy demand from member states and designate a market operator responsible for managing collective procurement. This initiative aims to enhance the current system of matching buyers with sellers, moving beyond it. Von der Leyen made these remarks during a European Parliament discussion ahead of the European Council’s scheduled meeting on October 15 and 16.
According to von der Leyen, European gas prices have surged by 140% since late February, with diesel prices doubling. She explained that increased costs for imported fossil fuels have added roughly €100 billion to Europe’s expenditure without increasing energy supply. The European Commission plans to extend a temporary state aid framework supporting industrial sectors under significant pressure. Additionally, targeted assistance for vulnerable households is part of the proposal, with energy voucher schemes in France and Romania cited as examples of such efforts.
The Commission is coupling the procurement proposal with measures aimed at energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels via the International Energy Agency over four months, emphasizing a significant diesel release during the initial 20 days. Furthermore, the EU will grant exporters an extra year of flexibility concerning methane regulations. Von der Leyen indicated that these measures would help reduce additional costs during this period of market turmoil.
Supply coordination efforts take center stage
A strategic dialogue between the European Commission and European refineries will be initiated to address issues related to costs and supply needs. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen noted that the dialogue would also encompass supply requirements for defense. She highlighted the significant differences in national energy markets, mentioning that electricity prices can vary from about €145 per megawatt-hour in one member state to approximately €70 in another, depending on energy sources.
The new joint EU energy procurement initiative builds upon measures introduced after Russia sharply cut gas supplies in 2022. During that period, demand pooling and cooperation among European buyers helped secure energy supplies. Von der Leyen stated that Russian gas constituted 45% of EU imports at that time, but the share has now decreased to 12%. The Commission’s current energy policy aims to eliminate Russian gas imports entirely by the end of 2026.
Focus on electrification aligns with long-term EU goals
Von der Leyen linked the immediate measures to the EU’s broader strategy of increasing reliance on domestic clean energy sources. She mentioned that over 70% of EU electricity now derives from renewable and nuclear power. Last year, wind and solar energy produced more electricity than all fossil fuels combined. The continent added more than 80 gigawatts of renewable capacity during this period. However, projects with capacity roughly six times that amount are still awaiting grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to roughly double this share by 2040. Von der Leyen suggested that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. The European Commission intends to introduce additional measures to support this transition in the coming months. At their October 15 and 16 meeting, EU leaders will also address rising energy costs, supply security, and broader economic challenges.