STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to establish a more centralized approach for collective EU energy buying. This initiative aims to unify demand from member states and involve a market operator to oversee procurement. It seeks to build upon the existing framework, which primarily connects purchasers with potential suppliers. Von der Leyen introduced this proposal during a European Parliament session, as EU leaders prepare to address energy challenges at their summit on October 15 and 16.
Amidst mounting pressure from increasing fuel prices and import costs, Europe faces a challenging energy landscape. Von der Leyen highlighted that European gas prices have surged by 140% since the end of February. She also noted that diesel prices have doubled over the same period. The escalation in fossil fuel imports has contributed an additional €100 billion to Europe’s energy expenditure. The European Commission advocates for targeted support for vulnerable households and assistance for industries under significant strain.
In addition to these measures, the Commission is adopting steps to improve supply security and reduce refining costs. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency, a program that will extend over four months and include an early diesel release. Exporters will also benefit from an extra year of flexibility regarding EU methane regulations. These initiatives form part of the broader EU strategy to combat high energy prices.
Moving toward coordinated energy procurement
The European Commission plans to initiate a strategic dialogue with domestic refiners regarding costs and supply issues. Energy Commissioner Dan Jørgensen and Defense Commissioner Andrius Kubilius will lead these discussions. The talks will also assess energy needs related to Europe’s defense sector. Von der Leyen emphasized the significant disparities among national electricity markets across the EU, with prices varying from approximately €70 to €145 per megawatt-hour, depending on each country’s energy mix.
This proposed procurement framework builds on joint purchasing efforts launched after Russian gas supplies sharply declined in 2022. The EU began pooling demand and connecting buyers with alternative suppliers during this period. Von der Leyen pointed out that Russian gas once accounted for about 45% of EU imports, but this share has fallen to roughly 12%. The European Commission’s goal is to eliminate Russian gas imports by the end of 2026.
Linking energy security to increased electrification
The EU is also committed to expanding its domestic renewable energy sources as part of its comprehensive energy strategy. Currently, more than 70% of EU electricity is generated from homegrown clean energy, including renewables and nuclear power. In the past year, wind and solar energy produced more electricity than all fossil fuels combined. Additionally, Europe added over 80 gigawatts of renewable capacity during this timeframe. Nonetheless, many planned projects still await grid access to deliver their full potential.
Electricity accounts for less than a quarter of the EU’s final energy consumption. The European Commission aims to increase this share to around 46% by 2040. Von der Leyen stated that broader electrification could cut annual fossil fuel imports by as much as €260 billion. Brussels is preparing further measures to promote grid expansion, renewable generation, and electricity consumption. As EU leaders convene later this month, energy prices and supply security will remain key topics on the agenda.