STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach to EU energy purchases amid sharply rising fuel prices. She outlined plans for a new task force to consolidate energy demand among member nations and designate a market operator to oversee joint procurement, aiming to evolve beyond the current buyer-seller matching system. This initiative was announced during a European Parliament discussion ahead of the European Council’s scheduled meeting on October 15 and 16.
Von der Leyen highlighted that gas prices in Europe have increased by 140% since late February, with diesel prices doubling. She emphasized that higher costs for imported fossil fuels have added roughly €100 billion to Europe’s expenses without boosting energy availability. The Commission intends to extend a temporary state aid framework to support the most affected industrial sectors and provide targeted assistance to vulnerable households, citing energy vouchers in France and Romania as examples.
The plan also couples procurement reforms with measures focusing on energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels over four months via the International Energy Agency, with a significant diesel release planned during the first 20 days. The Commission will grant exporters an extra year to comply with EU methane regulations, aiming to reduce additional costs amidst current market pressures, according to Von der Leyen.
Enhanced focus on supply coordination
A strategic dialogue between the European Commission and refineries will be initiated to address costs and supply challenges. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen stated the talks will also cover defense-related supplies, noting significant disparities across national energy markets. Electricity prices vary widely, with some states paying about €145 per megawatt-hour and others approximately €70, depending on their energy mix.
This new procurement task force builds on EU efforts launched after Russia sharply cut gas supplies in 2022, which involved pooling demand and uniting European buyers to secure supplies. Von der Leyen noted that Russian gas made up 45% of EU imports at the time, a share that has since decreased to 12%. The current energy policy aims to eliminate Russian gas imports entirely by 2026.
Electrification remains a core pillar of EU strategy
Von der Leyen linked the immediate response to the EU’s broader goal of increasing domestic clean electricity generation. She reported that over 70% of EU electricity now originates from renewable sources and nuclear power. Last year, wind and solar generated more electricity than all fossil fuels combined, with Europe adding over 80 gigawatts of renewable capacity. Nonetheless, projects equivalent to about six times that capacity are still waiting for grid connections.
Electricity accounts for less than 25% of total energy consumption in the EU. The Commission’s electrification plan aims to double this share by 2040, with Von der Leyen suggesting that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. Additional measures to promote this transition are expected in the coming months, and EU leaders will discuss rising energy costs, supply security, and economic challenges during their October 15 and 16 summit.