European Commission launches energy security revamp amid crisis concerns

The European Commission launched a comprehensive review of the EU's energy security framework on Sept. 15, acknowledging critical shortcomings exposed during the energy crisis triggered by Russia's invasion of Ukraine that left the bloc scrambling to adopt emergency measures.

The four-week call for evidence, running until Oct. 13, aims to address fundamental flaws in the current system, including a lack of operational readiness for deep supply shocks and insufficient cross-sector coordination between gas and electricity frameworks that operate in silos.

Commissioner for Energy and Housing Dan Jørgensen said Europe's energy system faces "new risks, such as cyberattacks, climate change impacts and a turbulent geopolitical landscape," requiring a "stronger and forward-looking EU framework" to ensure stable supplies across the continent.

Energy security in Europe was thrown into turmoil by the war in Ukraine, as Russian gas supplies dropped sharply.

The benchmark TTF month-ahead gas price hit an all-time high of Eur319.98/MWh ($351/MWh) on Aug. 26, 2022, putting European economies and energy policymakers under pressure.

Since then, prices have come down but remain historically high, with the end of Russian gas supplies via Ukraine to Europe on Jan. 1, 2025, adding renewed price pressure. The TTF month-ahead price hit a two-year high, and 2025 peak, of Eur58.14/MWh on Feb. 10.

Platts, part of S&P Global Energy, assessed the Dutch TTF month-ahead price at Eur32.74/MWh on Sept. 12.

New emerging risks

Brussels admitted that its energy security strategy needs to "adapt to the new geopolitical, energy and climate situation in order to prepare for a more decarbonised, electrified and integrated energy system."

The revision, with a proposal expected in the quarter of 2026, comes as the EC identified six major areas where the current framework falls short of protecting EU energy security in an increasingly complex threat environment.

"The objectives are to... make the framework more operational (particularly in times of crises); ensure cross-sector interaction and cross-border cooperation; address emerging threats to energy security; and ensure diversification of energy supplies," the EC said in the consultation.

The review also highlighted how gas and electricity security frameworks operate independently, disregarding potential spillover effects that ultimately weaken end-consumer protection.

This became particularly evident during the recent energy crisis when disruptions in gas markets directly impacted electricity generation and pricing across interconnected European markets.

The consultation also emphasized that the current framework lacks provisions to address this profound transformation arising out of the energy transition.