STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has suggested a more unified approach to EU energy procurement, proposing to pool demand from member states and utilize a market operator for management. The initiative would build upon the existing framework, which primarily links buyers with potential suppliers, by broadening its scope. Von der Leyen presented this idea during a debate in the European Parliament, as EU leaders prepare to address energy challenges at their summit on October 15 and 16.
Europe is under renewed strain from rising fuel prices and import costs, with gas prices having surged 140% since late February, according to Von der Leyen. She also noted that diesel prices have doubled in the same timeframe, while higher fossil fuel imports have increased Europe’s energy expenditure by approximately €100 billion. The European Commission advocates for targeted support to vulnerable households and industries under severe pressure.
The EU is also implementing measures to enhance supply security and address refining costs. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency, with the program scheduled to last four months and including an early diesel supply release. Additionally, exporters will benefit from a further year of flexibility regarding EU methane regulations. These actions are part of the EU’s broader strategy to combat elevated energy prices.
Moving Toward Centralized Energy Procurement
The European Commission plans to initiate a strategic dialogue with refiners across Europe to discuss costs and supply conditions, led by Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius. These discussions will also explore energy demands linked to Europe’s defense sector. Von der Leyen pointed out significant disparities among national electricity markets, with prices varying from roughly €70 to €145 per megawatt-hour depending on each country’s energy mix.
The proposed model for procurement expands on joint purchasing efforts launched after Russian gas supplies sharply declined in 2022, with the EU pooling demand and connecting buyers to alternative suppliers. Von der Leyen stated that Russian gas once accounted for about 45% of EU imports, but that share has now fallen to around 12%, with the Commission aiming to cease Russian gas imports entirely by the end of 2026.
Linking Energy Security and Electrification
As part of its comprehensive energy policy, the EU is increasing its domestic clean energy capacity. Over 70% of EU electricity is now generated from renewable sources and nuclear power, with wind and solar producing more electricity than all fossil fuels combined last year. During that period, Europe added over 80 gigawatts of renewable capacity, though many planned projects still face grid connection delays.
Currently, electricity accounts for less than a quarter of the EU’s final energy consumption, but the Commission aims to raise this share to approximately 46% by 2040. Von der Leyen highlighted that greater electrification could cut fossil fuel imports by as much as €260 billion annually. Brussels is preparing additional measures to facilitate grid expansion, promote renewable generation, and increase electricity usage. When EU leaders meet later this month, energy prices and supply security are expected to remain key topics on the agenda.