STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach for collective energy purchasing across the European Union as the bloc faces significantly increased fuel prices. She explained that a new task force would consolidate energy demand from member states and designate a market operator to oversee joint procurement efforts. This initiative aims to advance beyond the current method of matching individual buyers and sellers. Von der Leyen revealed this plan during a European Parliament debate ahead of the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, gas prices have increased by 140% since late February, with diesel prices doubling. She noted that the rising costs of imported fossil fuels have added approximately €100 billion to Europe’s expenditure without increasing the energy supply. The European Commission intends to extend a temporary framework for state aid, targeting industrial sectors under the greatest pressure. Additionally, targeted assistance for vulnerable households remains a priority. As an example of such efforts, she cited energy voucher programs in France and Romania.
The Commission’s proposal for joint procurement is being complemented by measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over the following four months, emphasizing a significant diesel release within the initial 20 days. Furthermore, the EU will grant exporters an extra year of flexibility under existing methane regulations. Von der Leyen stated that this move would help mitigate additional costs amid current market disruptions.
Enhanced focus on supply coordination
In addition to the procurement proposal, 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 serve as chairs for these discussions. Von der Leyen highlighted that the dialogue would also encompass supply needs for defense purposes. She pointed out notable disparities among national energy markets, mentioning that electricity costs can vary from around €145 per megawatt-hour in one member state to approximately €70 in another, depending on the energy mix.
The new joint procurement initiative builds upon earlier measures introduced after Russia sharply curtailed gas supplies in 2022. During that period, the EU pooled demand and united European buyers to ensure supply security. Von der Leyen shared that Russian gas comprised 45% of EU imports at that time, though this share has since fallen to 12%. The Commission’s objective is to eliminate Russian gas imports entirely by 2026 under its existing energy strategy.
Electrification remains a key element of EU energy policy
Von der Leyen also connected the immediate response to the EU’s broader transition toward domestically produced clean electricity. She stated that over 70% of EU electricity now derives from renewable and nuclear sources. Last year, wind and solar energy generated more electricity than all fossil fuels combined, with Europe adding over 80 gigawatts of renewable capacity during that period. Nevertheless, projects with a capacity roughly six times greater are still waiting to connect to the grid.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to double this share by 2040. According to von der Leyen, increased electrification could reduce annual fossil fuel imports by as much as €260 billion. The EU plans to introduce additional measures in the coming months to facilitate this transition. During their October 15 and 16 meeting, EU leaders will also discuss rising energy prices, supply security, and overall economic pressures.