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 grapples with significantly increased fuel prices. She announced that a new task force would consolidate energy demand across member states and designate a market operator responsible for coordinating joint procurement efforts. This initiative aims to advance beyond the existing framework of individual buyer-seller matching. Von der Leyen outlined this plan during a European Parliament session ahead of the European Council gathering scheduled for October 15 and 16.
According to Von der Leyen, European gas prices have surged by 140% since the end of February, while diesel costs have doubled. She explained that rising import costs for fossil fuels have added roughly €100 billion to Europe’s energy bill, without a corresponding increase in energy supply. The European Commission intends to extend a temporary state aid framework to support industrial sectors under the greatest pressure and also advocates targeted assistance for vulnerable households. As an illustration of such efforts, she cited energy voucher programs in France and Romania.
In addition, the Commission is pairing its procurement proposal with measures aimed at energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency over the course of four months, emphasizing a significant diesel release during the initial 20 days. Furthermore, the Commission will grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that this move would help diminish extra costs amid current market strains.
Supply coordination efforts come to the forefront
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 oversee these discussions. Von der Leyen also indicated that the dialogue would encompass supply requirements for defense purposes. She highlighted notable disparities in national energy markets, noting that electricity prices can vary significantly—from about €145 per megawatt-hour in one member state to roughly €70 in another—depending on the energy mix.
The new joint energy procurement team builds upon measures introduced after Russia sharply curtailed gas supplies in 2022. During that period, the EU pooled demand and unified European buyers to better ensure supply security. Von der Leyen pointed out that Russian gas comprised 45% of EU imports at that time, a share that has now fallen to 12%. The EU’s current energy policy aims to eliminate Russian gas imports entirely by the end of 2026.
Electrification continues to be a core EU strategy
Von der Leyen connected the immediate response to the EU’s broader goal of transitioning to domestically produced clean electricity. She noted that over 70% of EU electricity now originates from renewable sources and nuclear power. Last year, wind and solar energy generated more electricity than all fossil fuels combined. Europe also added more than 80 gigawatts of renewable capacity during that period. However, projects with a capacity roughly six times that amount are still awaiting grid connections.
Electricity accounts for less than 25% of the final energy consumption within the EU, but the Commission’s electrification plan aims to double that share by 2040. Von der Leyen indicated that increasing electrification could potentially reduce annual fossil fuel imports by as much as €260 billion. The Commission intends to implement additional measures to facilitate this transition in the coming months. At their October 15 and 16 meeting, EU leaders are also expected to discuss issues related to rising energy prices, supply stability, and broader economic challenges.