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 purchasing. This initiative would unify demand from member countries and involve a market operator to oversee procurement processes. It aims to expand the existing framework, which mainly links buyers with potential suppliers. Von der Leyen introduced this proposal during a debate in the European Parliament. The EU’s leaders will convene to discuss energy-related issues at their summit scheduled for October 15 and 16.
Europe is experiencing renewed pressure from rising fuel prices and increased import costs. According to Von der Leyen, European gas prices have surged by 140% since late February. She further noted that diesel prices have doubled over the same period. The escalation in fossil fuel imports has contributed approximately €100 billion to Europe’s energy expenditure. The European Commission advocates for targeted relief measures for vulnerable households and support for industries under significant strain.
Measures focused on ensuring supply security and lowering refining costs are also part of the Commission’s strategy. On October 2, G7 members agreed to release 100 million barrels via the International Energy Agency. This initiative will run over four months and includes an early dispatch of diesel supplies. Exporters will benefit from an additional year of flexibility concerning EU methane regulations. These actions are part of the EU’s response to the elevated energy prices affecting the continent.
Centralized coordination advances joint energy procurement
The European Commission will initiate strategic discussions with European refiners regarding costs and supply conditions. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will spearhead these talks. The discussions will also address energy needs associated with Europe’s defense sector. Von der Leyen emphasized significant disparities among national electricity markets across the EU, with prices varying from around €70 to €145 per megawatt-hour depending on each country’s energy profile.
This proposed procurement system expands upon joint purchasing measures introduced following the sharp decline in Russian gas supplies in 2022. The EU began pooling demand and establishing connections with alternative suppliers. Von der Leyen stated that Russian gas once accounted for roughly 45% of EU imports, but this share has since fallen to about 12%. The European Commission’s goal is to completely phase out Russian gas imports by the end of 2026.
Energy security linked to increased electrification in the EU
The EU is actively expanding its domestic renewable and nuclear power capacity as part of its comprehensive energy strategy. Currently, more than 70% of the bloc’s electricity is generated from domestic clean sources. In the past year, wind and solar power produced more electricity than all fossil fuels combined. During this period, the EU added over 80 gigawatts of renewable capacity. However, many planned projects are still awaiting grid access to fully realize their potential.
Electricity accounts for less than 25% of the EU’s final energy consumption, but the European Commission aims to increase this share to around 46% by 2040. Von der Leyen highlighted that broader electrification could reduce annual fossil fuel imports by as much as €260 billion. The EU is preparing additional policies to promote grid expansion, renewable generation, and electricity consumption. When EU leaders meet later this month, energy prices and supply security will continue to be key topics on the agenda.