STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan for a more centralized approach to joint EU energy buying as soaring fuel costs burden member states. She explained that a new task force would aggregate energy demand across nations and appoint a market operator responsible for coordinated procurement, aiming to go beyond the current system of matching buyers and sellers. She revealed this initiative during a European Parliament session ahead of the European Council meeting scheduled for October 15 and 16.
Von der Leyen highlighted that European gas prices have surged 140% since late February, with diesel costs doubling. She noted that increased imported fossil fuel prices have added approximately €100 billion to Europe’s energy expenses without boosting energy supply. The Commission intends to extend a temporary state aid framework aimed at industrial sectors under the greatest pressure and also supports targeted assistance for vulnerable households. As an example, Von der Leyen pointed to energy voucher schemes in France and Romania.
The proposal for joint procurement is being paired with measures targeting energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over four months, with a significant diesel release planned for the first 20 days. Additionally, the Commission will grant exporters an extra year of flexibility under EU methane regulations, a move intended to reduce additional costs amid current market tensions.
Supply coordination gains prominence
A strategic dialogue will be initiated by the European Commission with European refineries to tackle supply and cost issues. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen emphasized that the dialogue would also include supplies necessary for defense purposes. She also pointed out significant differences across 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 newly formed procurement task force builds on the EU’s collective buying measures introduced after Russia sharply reduced gas supplies in 2022, when the EU pooled demand and coordinated efforts among European buyers to secure energy. Von der Leyen stated that Russian gas made up 45% of EU imports at that time, but the share has now dropped to 12%. The current energy policy aims to eliminate Russian gas imports entirely by 2026.
Electrification remains a key EU strategy
Von der Leyen connected the short-term measures to the EU’s long-term goal of expanding domestic clean electricity generation. She noted that over 70% of EU electricity now derives from renewable and nuclear sources. Last year, wind and solar produced more electricity than all fossil fuels combined, with Europe adding over 80 gigawatts of renewable capacity. Nevertheless, projects with capacity roughly six times that amount are still awaiting grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption, but the Commission’s electrification plan aims to double that share by 2040. Von der Leyen explained that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. The Commission plans additional measures to support this transition in the upcoming months. EU leaders are also expected to address rising energy prices, supply security, and broader economic issues during their meeting on October 15 and 16.