Power and renewables 2026 outlook: half-time report

Six months into 2026, the power and renewables sector is moving faster than expected. The strategic divergences flagged at the start of the year have not just materialised - they have accelerated, and in some cases become irreversible. 

Utilities are doubling down on network investment and flexible generation, while oil and gas majors continue to retreat from renewable power. The gap between these two worlds is widening, reshaping the competitive landscape in ways that will define the industry for years to come. 

What does the mid-year picture really tell us? Which companies are best positioned for the second half, and which face the hardest choices? 

Our global team of experts has have drawn on unique insights from Wood Mackenzie Lens Power & Renewables and reviewed corporate strategies across leading power and renewables players to deliver our comprehensive half-time report. 

Key themes shaping the rest of 2026 include:

• Utilities push ahead on networks: Aggregate organic investment across leading utilities is set to rise by more than 10% this year, with networks at the core, driven by regulatory support, electrification demand and transformational M&A. 
• Oil and gas majors retreat: BP, Equinor and Shell have materially scaled back low-carbon energy commitments, redirecting capital to upstream oil and gas - a pivot that is becoming harder to reverse. 
• Flexibility takes centre stage: Investment in gas-fired generation and battery storage is accelerating across the sector, as utilities respond to intermittency, system balancing needs and volatile power markets. 
• Offshore wind consolidates around scale players: With BP, EnBW and TotalEnergies retreating, RWE has emerged as the new global offshore wind leader, surpassing Ørsted on contracted capacity following major AR7 auction wins. 
• Geopolitical risk reshapes strategy: Middle East conflict and energy security concerns are strengthening the long-term case for renewables, nuclear and storage, particularly in Europe and Asia. 

To read our full analysis of these themes and their global impact, fill in the form on this page for your complimentary copy of the full mid-year power and renewables outlook report.