STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified approach to EU energy purchasing amid escalating fuel prices across the continent. She indicated that a new task force would coordinate energy demands among member states and appoint a market operator responsible for managing collective procurement efforts. This initiative aims to advance the EU beyond its existing system of connecting buyers and sellers. Von der Leyen introduced this plan during a European Parliament session prior to the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, gas prices have surged by 140% since late February, while diesel prices have doubled. She noted that increased costs for imported fossil fuels have added roughly €100 billion to Europe’s expenditure without a corresponding increase in energy supply. To address this, the Commission intends to extend a temporary state aid framework aimed at industrial sectors under the greatest strain, along with targeted assistance for vulnerable households. She highlighted energy voucher programs in France and Romania as examples of this targeted support.
The proposal is coupled with measures focused on energy supply and refining. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency over four months, with a significant diesel release scheduled for 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 mitigate additional costs during this period of market turbulence.
Enhanced focus on supply coordination
A strategic dialogue between the European Commission and European refineries will be launched to address supply issues and control costs. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will oversee these discussions. Von der Leyen emphasized that the dialogue would also cover defense-related supplies. She further pointed out notable disparities in national energy markets, with electricity prices ranging from about €145 per megawatt-hour in one country to roughly €70 in another, depending on the energy sources used.
This new procurement task force builds upon earlier EU efforts to buy energy collectively following Russia’s sharp reduction in gas supplies in 2022. At that time, the EU pooled demand and united European buyers to secure supplies more effectively. Von der Leyen noted that Russian gas constituted 45% of the EU’s imports then, a share that has since decreased to 12%. The current EU energy policy targets eliminating Russian gas imports entirely by the end of 2026.
Electrification remains a core component of EU strategy
Von der Leyen linked the immediate response to the EU’s long-term goal of increasing domestic clean electricity generation. She highlighted that over 70% of electricity in the EU now originates from renewable sources and nuclear power. Last year, wind and solar energy generated more electricity than all fossil fuels combined. Europe has added more than 80 gigawatts of renewable capacity in that period. Nevertheless, projects equivalent to about six times that capacity are still awaiting grid connection.
Currently, electricity makes up less than 25% of the EU’s final energy consumption. The Commission’s electrification strategy aims to double this share by 2040. Von der Leyen explained that increasing electrification could potentially reduce annual fossil fuel imports by as much as €260 billion. The EU plans to introduce additional measures in the coming months to facilitate this transition. Leaders will also discuss energy prices, supply security, and broader economic challenges at their upcoming meeting on October 15 and 16.