STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to establish a more unified approach for collective EU energy purchasing. This initiative aims to combine demand from member states and utilize a market operator for procurement management. It would broaden the current system, which primarily links buyers with potential suppliers. Von der Leyen presented this proposal during a debate in the European Parliament. Leaders within the EU are set to discuss energy-related challenges at their summit on October 15 and 16.
Europe is experiencing renewed strain due to increasing fuel prices and import expenses. Von der Leyen noted that European gas prices have surged 140% since the end of February. She also highlighted that diesel prices have doubled in the same period. The rise in fossil fuel imports has contributed roughly €100 billion to Europe’s energy costs. The European Commission advocates for targeted support to vulnerable households and assistance for industries under significant pressure.
Additionally, 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 via the International Energy Agency. This initiative will span four months and includes an early release of diesel inventories. Exporters will also benefit from an extra year of flexibility regarding EU methane regulations. These measures are part of the EU’s strategy to combat elevated energy prices.
Progress Toward Centralized Procurement through Joint Purchasing
The European Commission plans to initiate a strategic dialogue with refiners across Europe focusing on costs and supply conditions. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will oversee these discussions, which will also explore energy demands related to Europe’s defense sector. Von der Leyen pointed out significant disparities among national electricity markets within the EU, with prices ranging from approximately €70 to €145 per megawatt-hour, depending on each country’s energy mix.
This proposed procurement system builds upon measures introduced after Russian gas supplies sharply declined in 2022, prompting the EU to pool demand and connect buyers with alternative suppliers. Von der Leyen stated that Russian gas once accounted for about 45% of EU imports, but this share has since diminished to around 12%. The European Commission aims to halt Russian gas imports entirely by the end of 2026.
Linking Energy Security to Increased Electrification
Furthermore, the EU is expanding its renewable domestic power capacity as part of its broader energy strategy. Currently, over 70% of the EU’s electricity stems from renewable and nuclear sources. Last year, wind and solar energy generated more electricity than all fossil fuels combined. During that period, Europe added more than 80 gigawatts of renewable capacity. Nonetheless, many planned projects still await grid access before becoming operational.
At present, electricity accounts for less than a quarter of the final energy consumption across the EU. The European Commission aims to increase this share to approximately 46% by 2040. Von der Leyen indicated that broader electrification could cut annual fossil fuel imports by as much as €260 billion. Brussels is preparing additional measures to promote grid infrastructure, renewable energy generation, and electricity consumption. The issues of energy prices and supply security are expected to feature prominently when EU leaders convene later this month.