STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward plans for a more unified system of joint energy buying within the EU as the bloc faces significantly rising fuel costs. She explained that a newly established task force would consolidate energy demands across member states and designate a market operator to oversee coordinated procurement. This initiative aims to go beyond the current framework of matching individual buyers and sellers. Von der Leyen announced these proposals during a debate in the European Parliament ahead of the European Council meeting scheduled for October 15 and 16.
Von der Leyen highlighted that gas prices in Europe have surged by 140% since the end of February, with diesel prices doubling. She noted that increased costs for imported fossil fuels have added approximately €100 billion to Europe’s expenses without a corresponding rise in energy supply. The European Commission intends to extend a temporary state aid framework aimed at industrial sectors under the greatest pressure and also supports targeted assistance for vulnerable households. She pointed to energy voucher programs in France and Romania as examples of such initiatives.
Alongside the procurement proposal, the European Commission is introducing measures focused on energy supply and refining. On October 2, G7 countries agreed to release 100 million barrels through the International Energy Agency over four months, with a significant diesel release planned during the first 20 days. Additionally, the Commission will grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that these steps would help mitigate additional costs amid current market tensions.
Focus shifts to supply coordination efforts
In an effort to address costs and supply concerns, the European Commission will initiate a strategic dialogue with European refineries. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen mentioned that the dialogue will also cover supplies necessary for defense. She further emphasized the stark differences across national energy markets, noting that electricity prices can range from about €145 per megawatt-hour in some countries to approximately €70 in others, depending on their energy mix.
The new procurement task force builds upon joint EU energy purchasing measures introduced after Russia sharply curtailed gas supplies in 2022. At that time, the EU pooled demand and united European buyers to secure supplies. Von der Leyen stated that Russian gas made up 45% of EU imports then, but this share has now decreased to 12%. The EU’s current energy policy aims to eliminate Russian gas imports entirely by the end of 2026.
Electrification remains a core element of EU strategy
Von der Leyen connected the short-term measures to the EU’s long-term transition toward increased use of domestic renewable energy sources. She noted that over 70% of EU electricity is now generated from clean, domestically produced energy, including renewables and nuclear. Last year, wind and solar surpassed all fossil fuel energy production combined, with Europe adding more than 80 gigawatts of renewable capacity during that period. However, projects with capacity roughly six times greater are still waiting for grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to double that share by 2040. Von der Leyen projected that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. The European Commission plans to introduce additional measures in the coming months to support this transition. EU leaders will also address rising energy prices, supply security, and broader economic challenges during their meetings on October 15 and 16.