STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a proposal for a more unified approach to collective EU energy buying as member states grapple with significantly rising fuel expenses. She indicated that a newly established task force would consolidate energy demand across nations and designate a market operator to oversee joint procurement efforts. This initiative aims to elevate the EU beyond its existing framework of matching buyers and sellers. Von der Leyen shared these plans during a European Parliament discussion prior to the European Council gathering scheduled for October 15 and 16.
According to Von der Leyen, European gas prices have surged 140% since late February, with diesel prices doubling. She explained that the increased costs for imported fossil fuels have added roughly €100 billion to Europe’s expense without boosting energy output. The European Commission intends to extend a temporary state aid framework aimed at industrial sectors under the greatest strain. It also advocates targeted assistance for vulnerable households, citing energy voucher initiatives in France and Romania as examples of this strategy.
The proposal is paired with measures concerning energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over four months, emphasizing a significant diesel release during the initial 20 days. Additionally, the Commission will offer exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that this step would help reduce additional costs amid the ongoing market pressures.
Focus shifts to supply coordination strategies
A strategic dialogue between the European Commission and European refineries will be launched to address costs and supply concerns. Energy Commissioner Dan Jørgensen and Defense Commissioner Andrius Kubilius will oversee these discussions. Von der Leyen highlighted that the talks would also encompass supplies needed for defense purposes. She noted the significant disparities across national energy markets, where electricity prices can vary from about €145 per megawatt-hour in one member state to roughly €70 in another, depending on their energy mix.
The new joint EU energy procurement task force builds on efforts introduced after Russia sharply cut gas supplies in 2022. During that period, the EU pooled demand and united European buyers to help secure energy supplies. Von der Leyen mentioned that Russian gas accounted for 45% of EU imports then, but that share has now decreased to 12%. The Commission’s goal is to eliminate Russian gas imports entirely by 2026 under its current energy strategy.
Renewable energy and electrification as key priorities
Von der Leyen also connected short-term responses to the EU’s broader long-term strategy of increasing domestic clean electricity generation. She noted that over 70% of EU electricity now stems from renewable sources and nuclear power. In fact, last year wind and solar produced more electricity than all fossil fuels combined. The bloc expanded its renewable capacity by over 80 gigawatts during that time, yet projects totaling about six times that capacity are still waiting for grid connections.
Currently, electricity makes up less than 25% of the EU’s final energy consumption. The European Commission’s electrification plan aims to nearly double that figure by 2040. Von der Leyen indicated that increasing electrification could reduce annual fossil fuel imports by up to €260 billion. The Commission plans to introduce additional measures in the coming months to support this shift. At their October 15 and 16 gathering, EU leaders are set to discuss rising energy prices, supply security, and broader economic challenges.