STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to create a more centralized approach for collective EU energy purchases. This initiative would combine demand from member states and utilize a market operator to oversee procurement processes. It aims to expand the existing EU framework, which primarily links buyers with potential suppliers. Von der Leyen presented this proposal during a debate in the European Parliament. Discussions on energy issues are scheduled for the EU leaders’ summit on October 15 and 16.
Europe is under renewed pressure due to rising fuel prices and increased import costs. Von der Leyen noted that European gas prices have surged by 140% since the end of February. She further pointed out 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 support to vulnerable households and assistance for industries experiencing significant strain.
In addition to market measures, the European Commission is implementing initiatives aimed at strengthening supply security and reducing refining costs. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency. This plan will operate over four months and includes an early release of diesel reserves. Exporters will also benefit from an extra year of flexibility regarding EU methane regulations. These steps form part of the EU’s broader strategy to respond to soaring energy prices.
Efforts to coordinate joint energy purchasing shift toward central management
The European Commission will initiate a strategic dialogue with refiners across Europe regarding costs and supply conditions. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will chair these discussions. The talks will also address energy needs related to Europe’s defense sector. Von der Leyen emphasized significant disparities between national electricity markets within the EU. Prices vary from roughly €70 to €145 per megawatt-hour, depending on each country’s energy profile.
This procurement approach builds on measures introduced after Russian gas supplies sharply declined in 2022. The EU started pooling demand and linking buyers with alternative suppliers. Von der Leyen stated that Russian gas once made up about 45% of EU imports. She added that this share has since fallen to around 12%. The European Commission’s goal is to phase out Russian gas imports entirely by the end of 2026.
Energy policy links security with increased electrification efforts
The EU is also investing in expanding domestic clean energy sources as part of its comprehensive energy strategy. Currently, over 70% of EU electricity is generated from domestic renewables and nuclear power. Last year, wind and solar produced more electricity than all fossil fuels combined. During this period, Europe added over 80 gigawatts of renewable capacity. However, much of the planned generation capacity still awaits grid access.
Electricity accounts for less than a quarter of the EU’s final energy consumption. The European Commission aims to increase this share to about 46% by 2040. Von der Leyen highlighted that wider electrification could cut annual fossil fuel imports by as much as €260 billion. Brussels has additional measures in development to support grid expansion, renewable power generation, and electricity consumption. When EU leaders meet later this month, energy prices and supply security will remain key agenda points.