STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified system for collective energy buying within the EU amidst surging fuel costs. She outlined plans for a new task force designed to consolidate energy demand across member states and assign a market operator to oversee collective procurement. This approach aims to advance the bloc beyond its existing model of connecting individual buyers and sellers. The announcement was made during a European Parliament debate prior to the European Council gathering scheduled for October 15 and 16.
Von der Leyen highlighted that gas prices have increased by 140% since the end of February, with diesel prices doubling. She explained that the rise in imported fossil fuel costs has contributed approximately €100 billion to Europe’s expenses without boosting energy supply. The European Commission intends to extend a temporary state aid framework for industrial sectors under extreme pressure and supports targeted assistance for vulnerable households. Examples of this support include energy voucher schemes implemented in France and Romania, she noted.
In addition, the Commission is pairing its procurement proposal with measures focused on 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 during the initial 20 days. The EU will also grant exporters an extra year of flexibility regarding methane regulations. Von der Leyen stated that this step would help to reduce additional costs amid current market strain.
Supply coordination initiatives gain prominence
The European Commission plans to initiate a strategic dialogue with European refineries to address issues related to costs and supply needs. The discussions will be led by Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius. Von der Leyen emphasized that these talks would also encompass supplies necessary for defense. She further pointed out the significant disparities across national energy markets, noting that electricity prices can vary from about €145 per megawatt-hour in one member state to roughly €70 in another, depending on the energy mix.
The new joint EU energy procurement task force builds upon measures introduced after Russia sharply curtailed gas supplies in 2022. During that period, the EU pooled demand and coordinated efforts among European buyers to secure energy supplies. Von der Leyen reported that Russian gas previously accounted for 45% of EU imports but has since decreased to 12%. Under its current energy strategy, the European Commission aims to eliminate Russian gas imports entirely by 2026.
Electrification as a central element of EU strategy
Von der Leyen linked the immediate responses to a broader, long-term goal of increasing the share of domestically produced clean electricity. She stated that over 70% of EU electricity now comes from renewable sources and nuclear power. Last year, wind and solar energy generated more electricity than all fossil fuels combined. During that period, Europe added over 80 gigawatts of renewable capacity; however, projects equivalent to about six times that capacity remain waiting for grid connections.
Currently, electricity accounts for less than 25% of the EU’s final energy consumption. The Commission’s electrification action plan aims to nearly double this proportion by 2040. Von der Leyen mentioned that expanding electrification could reduce annual fossil fuel imports by as much as €260 billion. The Commission intends to introduce additional measures in the upcoming months to support this transition. EU leaders are scheduled to address issues related to rising energy prices, supply resilience, and wider economic pressures during their meetings on October 15 and 16.