European Power & Renewables: what to look for in 2026
Predictions for the year ahead
1 minute read
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Europe enters 2026 at a pivotal moment in its energy transition. With recent years marked by volatility, price shocks, and the fastpaced deployment of renewables, the power system is showing early signs of stabilising into a more mature – though still materially constrained – market environment. Structural reforms initiated in recent years begin to take effect in 2026, shaping how market participants invest, operate and compete across the value chain.
The central theme of 2026 is transition under pressure: the pressure to integrate unprecedented levels of renewables; the pressure to deliver secure, affordable power; and the pressure to reform regulatory frameworks fast enough to keep pace with the physical system.
Across technologies and regions, the following cross-cutting dynamics will define the market landscape:
- A year of easing price pressure, but strategic tension for electrification
- Grid modernisation moves to the forefront
- Flexibility – both supply and demand – becomes an essential market
pillar - Renewables investment shifts from pure growth to asset optimisation
- Electrification load drivers emerge as major market shapers