STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a proposal to create a more centralized framework for joint energy purchases across the EU. This initiative aims to pool demand from member states and involve a market operator to oversee procurement activities, effectively broadening the current system, which mainly links buyers to potential suppliers. The proposal was presented during a debate in the European Parliament, while EU leaders are scheduled to address the mounting energy pressures at their summit on October 15 and 16.
Europe is experiencing renewed challenges due to surging fuel prices and increased import costs, with Von der Leyen noting that gas prices have risen by 140% since late February, and she highlighted that diesel prices have doubled during this same period. The escalation in fossil fuel imports has contributed roughly €100 billion to Europe’s energy expenditures. The European Commission advocates for targeted support for vulnerable households and assistance for industries under the greatest strain.
In addition, the Commission is implementing measures aimed at ensuring supply security and reducing refining costs. On October 2, G7 nations agreed to release 100 million barrels of oil through the International Energy Agency, a measure set to last for four months and including an early release of diesel stocks. Exporters will benefit from an extra year of flexibility regarding EU methane regulations, which forms part of the broader response to elevated energy prices across the bloc.
Efforts toward central coordination in joint procurement take shape
The European Commission plans to initiate a strategic dialogue with European refiners concerning costs and supply conditions, with Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius leading the discussions. These talks will also explore energy needs related to Europe’s defense sector. Von der Leyen pointed out significant disparities among national electricity markets across the EU, where prices can vary from about €70 to €145 per megawatt-hour depending on each country’s energy mix, emphasizing the necessity of coordinated efforts.
This proposed procurement framework builds upon the joint purchasing strategies initiated after Russian gas supplies sharply declined in 2022, as the EU began pooling demand and connecting buyers with alternative suppliers. Von der Leyen stated that Russian gas once accounted for approximately 45% of EU imports, a share now reduced to roughly 12%, and the European Commission aims to eliminate Russian gas imports entirely by the end of 2026.
European Union links energy security to increased electrification
As part of its comprehensive energy strategy, the EU is expanding domestic clean power generation, with over 70% of electricity now produced from renewable and nuclear sources. Last year, wind and solar energy generated more power than all fossil fuels combined, and during this period, the bloc added more than 80 gigawatts of renewable capacity. Nonetheless, a large portion of this planned capacity still faces delays due to grid access issues.
Electricity accounts for less than 25% of the EU’s final energy consumption, but the European Commission aims to increase this share to approximately 46% by 2040. Von der Leyen indicated that broader electrification could potentially cut annual fossil fuel imports by up to €260 billion, and Brussels is preparing further measures to support grid infrastructure, renewable energy expansion, and electricity utilization. When EU leaders convene later this month, energy prices and supply security will remain top priorities on the agenda.