Op-ed: Europe’s new Energy Union — cleaner, cheaper and more connected

With permitting reform, long-term contracts, and cross-border collaboration, the European Commission’s Clean Industrial Deal puts a shared European energy market at the heart of the continent’s green and digital future.
Wind Turbines in Pfalzgrafenweiler, Baden-Wuerttemberg, Germany. (imageBROKER.com/Alamy Stock Photo)

By Dan Jørgensen

Dan Jørgensen is the European Commissioner responsible for energy and housing.

05 May 2025

@DanJoergensen

With the European Union at a turning point for its competitiveness, decarbonisation and security, there is a clear need to act.  

High energy bills are hurting European homes and businesses. In his 2024 competitiveness report, Mario Draghi mentions energy more than 700 times. A stronger Europe requires stronger co-operation on energy to underpin jobs, growth and prosperity. 

The need for a stronger Europe could not be more urgent. On our borders, Russian brutality shakes the foundations of European security. Since President Vladimir Putin began his invasion, Europe has spent the equivalent of the cost of 2,400 F-35 fighter jets on fossil fuels from Russia. This cannot continue.  

As we strive to protect our continent, we must also safeguard our planet. The energy sector accounts for 75 per cent of Europe’s greenhouse gas emissions. The longer it takes to decarbonise, the longer we remain exposed to volatility – both in fossil fuel prices and the crises of climate change.  


This article is part of  The Parliament's latest policy report, "Delivering Europe's Clean Industrial Deal." 


Our challenges are significant, but so too is the European Union’s ability to address them.  

On 26 February, I presented the EU Action Plan for Affordable Energy, a plan designed to unlock the full potential of our Energy Union for both consumers and businesses. 

When it comes to the green transition, we are not backtracking; we are fast-tracking. Across Europe today, it takes years to build wind turbines and solar farms. Hundreds of gigawatts of green, affordable energy are waiting to be unleashed. Europeans must not be made to wait longer.  

We will therefore cut the permitting delays that hinder the development of renewable projects. This will enable a quicker delivery of affordable green energy to Europeans. We will also make it easier to secure longer-term contracts for renewable energy, ensuring that buyers of clean electricity are shielded from short-term volatility in energy markets.  

Another area of focus will be to strengthen and streamline our Energy Union. Currently, we are only using half the potential of our grids: it is as if Europe had 100 motorways, but only used 50, while needing 200 in the future. The European Commission will lead closer co-ordination between member states in the governance of energy markets, planning of grid developments and preparing for crises.  

We will also direct shared, strategic European investments to advance efficiency, electrification and modernisation. To further support these investments, we will establish a tripartite contract for affordable energy, linking the public sector, clean energy developers and producers, and the energy consuming industry. This is about enhancing scale and ensuring predictability.  

Finally, as we decarbonise our economy, demand for gas is declining, but it will remain a significant part of our energy mix for some time. Our action plan aims to create fairer gas markets by improving regulatory oversight and equipping authorities with strong legal powers to sanction market abuses. We will also strive to make gas markets more competitive by leveraging the EU’s purchasing power to secure better deals for imports from reliable LNG suppliers. 

Reducing costs for Europe 

For European homes and businesses, this translates into a potential €45bn in savings in 2025, growing to at least €130bn in annual savings by 2030 and to €260bn a year from 2040. Overall, between now and 2040, we can save up to €2.5tn on fossil fuel imports. 

These savings are within our reach. By combining the efforts of the EU, member states, the private sector and citizens, we can realise our full potential and fulfil Europe’s original promise: to be united in diversity and direction. 

Almost 70 years ago, Professor Walter Hallstein, the first president of the European Commission, spoke of this promise as he set out the prospects for European unity in a world of daunting challenges: “If the great venture is to succeed, what we need is not only intelligence, imagination and determination but, above all, confidence in ourselves, and a tough, unyielding will to survive.” 

Let’s heed these words and have confidence in ourselves. Through unity, we have not just survived – we have thrived.  

We began as the European Coal and Steel Community; we are now a European community of wind turbines, solar panels and geothermal generators. Where we were once divided by trenches and the iron curtain, we are now connected, by power lines, cables and interconnectors. 

Now is the moment to finish what we started 70 years ago, to build on our strengths and unlock the full potential of our Energy Union. We cannot afford to wait a moment longer.  

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