STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen announced plans to establish a more unified approach for joint energy purchasing across the EU as the bloc faces significantly increased fuel prices. She explained that a newly formed task force would consolidate energy demands from member states and appoint a market operator to oversee collective procurement efforts. This initiative aims to evolve beyond the existing system of matching buyers with sellers. Von der Leyen revealed this measure during a European Parliament debate prior to the European Council gathering scheduled for October 15 and 16.
According to Von der Leyen, gas prices have surged by 140% since the end of February, and diesel prices have doubled. She highlighted that the increased costs of imported fossil fuels have added approximately €100 billion to Europe’s energy bill, 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 supports targeted assistance for vulnerable households, citing energy voucher schemes in France and Romania as examples of such efforts.
In addition to the procurement proposal, the Commission is pairing measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over a four-month period, emphasizing a substantial diesel release during the first 20 days. Furthermore, the Commission will grant exporters an extra year of flexibility under EU methane regulations, a move von der Leyen said would help mitigate additional costs amid current market tensions.
Coordination of energy supply takes on increased importance
A strategic dialogue between the European Commission and European refineries will be initiated to address cost pressures and supply needs. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen noted that the dialogue would also encompass supplies essential for defence purposes. She pointed out the stark disparities in national energy markets, citing electricity costs that can vary from about €145 per megawatt-hour in some member states to approximately €70 in others, depending on the energy mix.
The new joint EU energy procurement initiative builds on measures introduced following Russia’s sharp reduction of gas supplies in 2022. During that period, the EU pooled demand and united European buyers to secure supplies more effectively. Von der Leyen stated that Russian gas accounted for 45% of EU gas imports at that time, but this share has since declined to 12%. The Commission’s current energy policy aims to eliminate Russian gas imports entirely by the end of 2026.
Electrification remains a core focus of EU strategy
Von der Leyen also emphasized that the EU’s short-term responses are closely tied to its long-term goal of increasing domestic clean electricity generation. She noted that over 70% of EU electricity now comes from renewable sources and nuclear power, including wind and solar, which produced more electricity than all fossil fuels combined last year. Europe added more than 80 gigawatts of renewable capacity during that period, yet projects with capacity roughly six times larger are still awaiting grid connections.
Currently, electricity makes up less than 25% of the EU’s final energy consumption, but the Commission’s electrification action plan aims to double this share by 2040. Von der Leyen highlighted that boosting electrification could reduce annual fossil fuel imports by as much as €260 billion. Further measures supporting this transition are expected to be announced in the coming months. Leaders will also address concerns related to rising energy prices, supply security, and broader economic challenges during their upcoming meeting on October 15 and 16.