STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to establish a more centralized system for joint EU energy buying amid escalating fuel costs across the bloc. She explained that a new task force would consolidate energy demand among member states and designate a market operator responsible for managing collective procurement. This initiative aims to move beyond the current system of matching individual buyers with sellers. Von der Leyen announced this proposal during a European Parliament debate ahead of the European Council meeting scheduled for October 15 and 16.
According to Von der Leyen, gas prices in Europe have surged 140% since the end of February, while diesel costs have doubled. She pointed out that the rising costs of imported fossil fuels have added approximately €100 billion to Europe’s energy bill without increasing the actual energy received. The European Commission intends to prolong a temporary state aid framework aimed at sectors most affected. Additionally, it advocates for targeted assistance to vulnerable households, citing energy voucher initiatives in France and Romania as examples of this approach.
Alongside the procurement plan, the Commission is implementing measures focused on energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels over four months through the International Energy Agency, emphasizing a significant diesel release during the initial 20 days. Moreover, the EU will grant exporters an extra year of flexibility under methane regulations. Von der Leyen stated that this step would help mitigate additional costs during the current market strain.
Focus shifts toward supply coordination
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 emphasized that the dialogue would also cover supplies necessary for defense purposes. She highlighted the significant disparities among national energy markets, noting that electricity prices can vary from about €145 per megawatt-hour in one country to roughly €70 in another, depending on the energy mix.
The new joint EU energy purchasing effort builds upon measures introduced after Russia sharply cut gas supplies in 2022. During that crisis, the EU pooled demand and coordinated procurement efforts to secure energy supplies. Von der Leyen pointed out that Russian gas accounted for 45% of EU imports at that time, a share which has now decreased to 12%. The Commission’s current energy strategy aims to eliminate Russian gas imports entirely by the end of 2026.
Electricity transition remains a key focus
Von der Leyen connected the short-term responses to the EU’s long-term goal of expanding domestic clean electricity generation. She noted that over 70% of EU electricity now comes from renewable and nuclear sources. Last year, wind and solar energy produced more electricity than all fossil fuels combined. During that period, Europe added more than 80 gigawatts of renewable capacity. Nonetheless, projects with a capacity roughly six times that amount are still awaiting grid connections.
Electricity currently makes up 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 stated that increasing electrification could reduce annual fossil fuel imports by as much as €260 billion. The EU plans additional measures in the coming months to support this transition. Leaders are also set to discuss rising energy costs, supply security, and broader economic challenges at their meeting on October 15 and 16.