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"Safe, secure, sustainable and affordable energy contributing to European competitiveness remains a priority for Europe. Action at the EU level can and must bring added value to that objective," the leaders said in a statement.
According to the European Commission, a truly integrated EU energy market could contribute to 0.6-0.8 percent of increase in the bloc's gross domestic product (GDP) and create five million jobs by 2020.
The European Commission's proposal to modernize and expand Europe's energy infrastructure and interconnect networks across borders was also echoed by the leaders.
The leaders stressed that the EU should diversify its routes of supply and sources of energy. The EU imports more than half of its energy supplies, accounting for 2.5 percent of its GDP, with 32 percent of oil imports and 40 percent of gas imports coming from Russia.
The leaders also concluded that innovation could contribute to tackling the most critical societal challenge and that Europe would need a unified research area to attract talent and investment.
"Remaining gaps must therefore be addressed rapidly and the European Research Area completed by 2014 to create a genuine single market for knowledge, research and innovation," the leaders said.