STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more centralized framework for joint energy purchases within the EU, as the bloc contends with significantly rising fuel costs. She announced the creation of a new task force that would consolidate energy demand across member states and designate a market operator responsible for managing shared procurement efforts. This initiative aims to advance beyond the current system that relies on matching individual buyers and sellers. Von der Leyen unveiled this plan during a debate in the European Parliament 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 late February, and diesel prices have doubled. She highlighted that increased costs for imported fossil fuels have added approximately €100 billion to Europe’s expenditure, without a corresponding rise in energy supply. The Commission intends to extend a temporary state aid framework aimed at sectors most under pressure. It also advocates targeted support for vulnerable households, citing energy voucher schemes in France and Romania as examples of this approach.
The proposal for joint procurement is being paired with measures focused on energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels of oil through the International Energy Agency over a four-month period, including a significant diesel release in the initial 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 alleviate extra costs during this period of market volatility.
Supply coordination gains prominence
A strategic dialogue between the European Commission and European refineries will be initiated to address issues related to costs and supply. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen emphasized that the dialogue would also encompass supply requirements for defense purposes. She pointed out significant disparities in energy markets across member states, noting that electricity prices can range 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 initiative builds upon measures introduced after Russia sharply cut gas supplies in 2022. During that period, the EU pooled demand and coordinated efforts among European buyers to secure supplies. Von der Leyen indicated that Russian gas made up 45% of EU gas imports at that time, but this share has now decreased to 12%. The Commission’s current energy policy aims to eliminate reliance on Russian gas altogether by the end of 2026.
Electrification remains a cornerstone of EU strategy
Von der Leyen also connected the immediate measures to the EU’s broader long-term goal of increasing domestic clean electricity generation. She noted that over 70% of EU electricity now originates from renewable and nuclear sources. Last year, wind and solar power produced more electricity than all fossil fuels combined, with Europe adding more than 80 gigawatts of renewable capacity. Nonetheless, projects with a capacity roughly six times that amount are still awaiting grid connections.
At present, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to nearly double that share by 2040. Von der Leyen highlighted that expanding electrification could reduce annual fossil fuel imports by up to €260 billion. The Commission is set to introduce additional measures in the coming months to support this transition. Meanwhile, EU leaders are scheduled to discuss escalating energy prices, supply security, and broader economic challenges at their meeting on October 15 and 16.