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As Europe pushes toward its climate targets, the energy transition is facing a more complex reality. Growing power demand, physical climate risks and grid limitations are becoming as critical as renewable deployment itself.
Europe’s digital transformation is accelerating electricity consumption, driven largely by data centres that support cloud computing, AI and online services. EU data centre power demand could rise from about 70 TWh today to over 110 TWh by 2030, challenging energy efficiency and grid capacity goals. The European Commission highlights the need for stronger efficiency standards, transparency on energy and water use, and greater integration of renewables. New reporting obligations and upcoming labelling schemes aim to ensure data centres grow in a way that aligns with Europe’s climate objectives rather than undermining them.
New research published in Nature Communications shows that extreme wind speeds are increasing across much of the world’s coastal regions due to climate change. This trend threatens offshore wind farms, as many turbines are designed for historical wind conditions that are now being exceeded. Over 40 % of existing or planned projects in Europe and Asia may face wind loads beyond some turbine design limits. The study underscores the need to update turbine standards and planning practices to safeguard offshore wind as a reliable pillar of clean energy.
At RE-Source 2025, analysts reported a sharp decline in European renewable power purchase agreements (PPAs), with deal volumes falling by roughly 60 % year-on-year. This slowdown weakens investment signals for new wind and solar projects and threatens Europe’s energy security and industrial competitiveness. Grid congestion, slow permitting, and weak electrification demand are key barriers. Policymakers are now exploring financial support mechanisms and market reforms to revive PPA activity and sustain Europe’s clean energy momentum.
The European Commission’s new EU Grids Package aims to modernise and expand electricity networks across Europe, a move seen as essential for energy security, affordability and competitiveness. The initiative tackles long-standing bottlenecks that have slowed renewable deployment, proposing updated rules for grid planning, faster permitting and increased investment certainty. With electricity demand rising and more wind and solar coming online, the lack of transmission and interconnection capacity has become a key barrier to clean energy growth. Grids are not just infrastructure but strategic assets: without them, renewable generation can’t reach consumers, costs remain high and reliance on fossil fuel imports persists. The Package underscores that modern grids, capable of handling high shares of renewables and enabling cross-border power flows, are central to meeting Europe’s energy and climate goals.
Portugal has been officially included in the European Union’s map of strategic energy corridors known as “Energy Highways”. This recognition reflects major investments to integrate Portugal’s electricity and hydrogen infrastructure with the wider European grid. Key projects, including cross-border interconnectors with Spain and hydrogen transport links towards France and Germany, are poised to strengthen system resilience and enable Portugal to export clean power and green hydrogen to continental markets. Inclusion in the EU’s list of priority projects highlights Portugal’s growing role in the energy transition and its capacity to coordinate complex, transnational infrastructure that supports security of supply, market integration and decarbonisation. The move not only brings investment but also enhances Portugal’s strategic position in Europe’s evolving energy landscape.
New Eurostat figures show that in 2024, 25.2 % of the EU’s gross final energy consumption came from renewable sources, marking continued progress but still leaving a significant gap to the 2030 target of 42.5 %. Northern countries such as Sweden, Finland and Denmark remain leaders, while several others trail behind. Renewable electricity is advancing faster: by the third quarter of 2025, nearly half of EU net electricity generation came from renewables, driven mainly by wind, solar and hydropower. Despite these gains, the data underline a clear message: without faster grid expansion, stronger interconnections and sustained investment, Europe risks falling short of its climate, competitiveness and energy security ambitions.
5 min
Insights, Market-trends
15th Dec, 2025
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Insights
2nd Dec, 2025
2 min
Insights
19th Nov, 2025
