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 procurement. This strategy aims to combine the demand from member states and utilize a market operator to oversee the sourcing process. It seeks to extend the current system, which primarily links buyers with potential suppliers. Von der Leyen presented this initiative during a debate in the European Parliament. At their October 15 and 16 summit, EU leaders are expected to address ongoing energy challenges.
The continent is experiencing renewed strain from escalating fuel prices and rising import costs. According to Von der Leyen, European gas prices have surged by 140% since the end of February. She also pointed out that diesel prices have doubled over the same period. Increased fossil fuel imports have contributed approximately €100 billion to Europe’s energy expenses. The European Commission advocates targeted support for vulnerable households and assistance for industries under significant pressure.
Additionally, the Commission is implementing measures aimed at ensuring supply security and managing refining costs. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency. This initiative will span four months and includes an early release of diesel reserves. Exporters will benefit from an extra year of flexibility under EU methane regulations. These actions are part of the broader EU strategy to address high energy prices.
Efforts in joint procurement aim for centralized coordination
A strategic dialogue will be initiated by the Commission with European refiners to discuss costs and supply conditions. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will spearhead these discussions. The dialogue will also cover energy needs linked to Europe’s defense sector. Von der Leyen emphasized the significant disparities between national electricity markets across the EU, with prices ranging from approximately €70 to €145 per megawatt-hour depending on each country’s energy mix.
This proposed procurement approach builds upon the joint purchasing measures introduced after Russian gas supplies sharply declined in 2022. At that time, the EU began pooling demand and establishing connections between buyers and alternative suppliers. Von der Leyen noted that Russian gas once made up about 45% of EU gas imports, a share that has since decreased to roughly 12%. The European Commission is targeting an end to Russian gas imports by the end of 2026.
Linking energy security to increased electrification
The EU is actively working to expand domestic renewable power as part of its broader energy agenda. Currently, over 70% of EU electricity is generated from domestic clean sources, including renewables and nuclear energy. In fact, last year wind and solar produced more power than all fossil fuels combined. During that period, Europe added over 80 gigawatts of renewable capacity, though many planned projects are still awaiting grid access.
Electricity accounts for less than a quarter of the final energy consumption across the EU, but 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. The EU is also planning additional measures to promote grid expansion, boost renewable generation, and encourage electricity use. Energy prices and security of supply are set to remain key topics when EU leaders convene later this month.