STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has outlined plans to establish a more unified system for joint EU energy purchasing amid soaring fuel costs across the bloc. She explained that a new task force would coordinate energy demand from member states and designate a market operator to oversee collective procurement efforts. This initiative aims to advance beyond the current system of matching individual buyers and sellers. Von der Leyen revealed this measure during a European Parliament debate prior to the European Council meeting scheduled for October 15 and 16.
According to Von der Leyen, European gas prices have surged by 140% since late February, while diesel prices have doubled. She highlighted that increased costs for imported fossil fuels have added approximately €100 billion to Europe’s energy bill without boosting the actual energy delivered. The European Commission intends to extend a temporary state aid framework to support industrial sectors under greatest pressure and is also advocating targeted assistance for vulnerable households. She pointed to energy voucher schemes in France and Romania as examples of this approach.
The proposal on procurement is accompanied by measures targeting energy supply and refining processes. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over four months, with a focus on a significant diesel release during the initial 20 days. Additionally, the European Commission will grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen explained this step will help mitigate additional costs during the current market strain.
Focus shifts to energy supply coordination
A strategic dialogue between the European Commission and European refineries will be initiated to address costs and supply requirements. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen also noted that the dialogue would include discussions about supplies necessary for defense purposes. She emphasized the significant disparities among national energy markets, with electricity prices ranging from approximately €145 per megawatt-hour in some member states to about €70 in others, depending on the energy mix.
The new joint EU energy procurement initiative expands upon measures introduced after Russia sharply curtailed gas supplies in 2022. During that period, the EU coordinated demand and brought together European buyers to bolster supply security. Von der Leyen stated that Russian gas made up 45% of EU imports at that time but has since fallen to 12%. The European Commission aims to eliminate Russian gas imports entirely by the end of 2026 as part of its current energy strategy.
Electrification continues to be a key focus for the EU
Von der Leyen connected the short-term response to the EU’s long-term transition toward domestically produced clean electricity. She noted that more than 70% of EU electricity now originates from renewable and nuclear sources. Last year, wind and solar energy produced more electricity than all fossil fuels combined. The EU added over 80 gigawatts of renewable capacity during that year. Nonetheless, projects with an equivalent capacity of about six times that amount are still waiting for grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The European Commission’s electrification plan aims to double this share by 2040. Von der Leyen stated that increasing electrification could reduce annual fossil fuel imports by as much as €260 billion. The Commission plans to introduce additional measures in the coming months to facilitate this transition. EU leaders will also discuss rising energy prices, supply security, and broader economic challenges at their upcoming meeting scheduled for October 15 and 16.