Energy Technology & Innovation

Gas price surge sparks calls for structural energy reform in Europe

fossil gas pipelines transporting natural gas through industrial energy infrastructure
  • Civil society network Beyond Fossil Fuels is urging European leaders to accelerate structural energy reforms as gas prices surge amid geopolitical tensions.

  • Disruptions to shipping through the Strait of Hormuz have reportedly pushed European gas prices up by as much as 60% in some markets.

  • The group argues that Europe’s continued reliance on imported fossil gas leaves households and businesses vulnerable to price shocks.

  • Recommendations include expanding energy storage, grid investment and renewable energy, and reducing subsidies for gas power plants.

  • The call comes ahead of the European Council meeting on 19–20 March, where energy security and electricity market reforms are expected to be discussed.

Civil society network Beyond Fossil Fuels has called on European governments to accelerate structural reforms to the continent’s energy system as gas prices rise following geopolitical tensions in the Middle East.

The group issued the appeal ahead of the European Council meeting scheduled for 19–20 March, where heads of government are expected to discuss energy prices, security of supply and electricity market reforms.

According to the organisation, disruptions to shipping routes through the Strait of Hormuz have contributed to a sharp rise in fossil gas prices across Europe, with increases of up to around 60% reported in some national markets.

Countries heavily reliant on gas imports—including Italy, Germany and the Netherlands—have seen particularly strong price movements as global energy markets react to the disruption.

The latest developments mark the third major fossil-fuel-driven energy price shock affecting Europe in the past 15 years, the group said.

Energy price volatility linked to fossil fuel dependence

Europe remains heavily dependent on imported fossil fuels for electricity generation and heating, leaving consumers exposed to global commodity markets and geopolitical risks.

In recent remarks on the energy price situation, European Commission President Ursula von der Leyen noted that dependence on imported fossil fuels continues to create vulnerabilities for the European economy.

According to estimates cited by Beyond Fossil Fuels, the latest conflict has already increased the cost of fossil fuel imports to Europe by several billion euros in a matter of days.

Energy affordability remains a major concern across the European Union, with millions of households still struggling to adequately heat their homes.

Clean flexibility and grid investment highlighted as solutions

The group argues that expanding “clean flexibility” technologies—including battery storage, demand-side response and pumped hydro—could help reduce electricity price volatility by decreasing reliance on gas-fired power plants.

These technologies allow electricity systems to better integrate renewable energy while maintaining grid stability.

Member States are expected to submit national Flexibility Needs Assessments later this year, outlining how their power systems will integrate non-fossil flexibility solutions.

Beyond Fossil Fuels also called for reforms to capacity market mechanisms that support gas power plants, arguing that such subsidies risk prolonging dependence on fossil fuels.

Policy debates ahead of European Council meeting

The organisation’s statement comes as EU policymakers debate how to manage rising energy prices while continuing the transition toward lower-carbon electricity systems.

Among the measures being discussed across European institutions are expanded renewable energy deployment, grid modernisation, and the future design of electricity markets.

The group also emphasised the role of the EU Emissions Trading System in providing a long-term investment signal for low-carbon technologies.

Juliet Phillips, campaigner at Beyond Fossil Fuels, said the current situation highlights the need to accelerate the transition to domestically produced clean energy.

“Households and businesses are paying too high a price for our dependence on fossil fuels through energy bills and insecurity,” Phillips said.

European leaders are expected to continue discussions on energy security and electricity market reforms during the upcoming European Council meeting later this week.