STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to create a more unified system for joint EU energy buying. This approach would pool the demands of member states and leverage a market operator to oversee procurement, expanding the current framework that mostly connects buyers with potential suppliers. The proposal was presented during a debate in the European Parliament, with EU leaders set to address energy challenges at their summit on October 15 and 16.
Rising fuel prices and import expenses continue to put Europe under significant strain. Von der Leyen pointed out that European gas prices have increased by 140% since late February. She also noted that diesel prices have doubled over the same period. These higher fossil fuel imports have inflated Europe’s energy expenditure by approximately €100 billion. To address this, the Commission advocates for targeted support for vulnerable households and assistance for industries under severe pressure.
Measures focusing on energy supply security and refining costs are also being introduced by the European Commission. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency, a program set to last four months that includes an early release of diesel supplies. Exporters will benefit from an additional year of flexibility under EU methane regulations. These initiatives are part of the EU’s broader response to the elevated energy prices impacting the region.
Moving Towards Centralized Energy Purchasing
A strategic dialogue on costs and supply conditions will be initiated by the Commission with European refiners. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius are set to lead these discussions. The talks will also explore energy demands related to Europe’s defence sector. Von der Leyen emphasized the large disparities among national electricity markets within the EU, where prices range from roughly €70 to €145 per megawatt-hour depending on each country’s energy mix.
The proposed procurement model builds upon joint purchasing measures that were introduced after Russian gas supplies sharply declined in 2022. The EU had since started pooling demand and connecting buyers with alternative suppliers. Von der Leyen highlighted that Russian gas once accounted for about 45% of EU imports, a share that has now fallen to roughly 12%. The European Commission’s goal is to phase out Russian gas imports entirely by the end of 2026.
Linking Energy Security with a Shift to Electrification
Expanding domestic renewable energy sources is also a core part of the EU’s broader energy strategy. Currently, more than 70% of EU electricity is generated from domestic clean sources, including renewables and nuclear power. Last year, wind and solar energy produced more electricity than all fossil fuels combined, with over 80 gigawatts of new renewable capacity added during that period. Despite this progress, many planned generation projects are still awaiting grid access.
Electricity accounts for less than a quarter of the final energy consumption across the EU, but the Commission aims to increase this share to about 46% by 2040. Von der Leyen stated that broader electrification could cut fossil fuel imports by up to €260 billion annually. The EU is preparing additional measures to support grid development, renewable power generation, and electricity consumption. When EU leaders meet later this month, energy prices and supply security will remain key issues on the agenda.