What European energy policies to look out for in 2026

These include the citizens energy package, which was initially planned for Q4 of 2025, the electrification action plan, the heating and cooling strategy and the strategic roadmap for digitalisation and AI in the energy sector all planned for this Q1 of 2026, as well as a proposed revision of the energy security framework.

Digitalisation and AI

Arguably one of the most keenly awaited is the digitalisation and AI roadmap, with the drive for digitalisation and the rapid growth in the use of AI and proliferation of data centres across Europe.

Issues that the roadmap is intended to address include access to quality data, uneven adoption of digitalisation, the rising energy demand of digital technologies, specifically AI, and the risks associated with their deployment.

For more insights on what to expect:
EU Energy Projects Podcast: How the EU plans to support AI in the energy sector

While there have been various documents produced on AI – among them the ETIP SNET detailed position paper and guide for action, which should be required reading for anyone involved in Europe’s energy sector – the Commission’s roadmap should provide an overarching framework to coordinate efforts across the sector.

Citizens energy package

The citizens energy package, planned as one of the key deliverables of the affordable energy action plan (released in February 2025), is proposed to address the ongoing challenges that are limiting consumers from understanding and participating in the energy market.

Key issues are high energy prices and energy poverty and disproportionate impact of the energy transition, and the lack of consumer trust and engagement, further hindering the uptake of services and cost saving solutions.

The package is proposed to ensure that energy transition benefits reach all citizens, regardless of socioeconomic status, by tackling energy poverty and empowering citizens and communities in the energy market. In part this is expected to include measures on implementing existing EU legislation, particularly around advancing energy communities.

Electrification action plan

The electrification action plan, another initiative out of the affordable energy action plan and the clean industrial deal, is planned to accelerate electrification and increase its contribution to final energy consumption. The target is to reach 32-33% by 2030, up from 23% in 2023.

Electrification is needed across transport, industry and buildings primarily, but its advance needs to be matched with a pipeline of clean and renewable energy supply and the integration of flexibility to optimise use of this intermittent supply.

The plan is due to address barriers to cost efficient electrification, in terms of both supply and demand, and to propose incentives to different use cases in those key electrification sectors.

Heating and cooling strategy

Complementary to the electrification action plan, the heating and cooling strategy is intended to ‘clean’ this sector by increasing energy efficiency including through better system integration.

The use of energy for heating and cooling represents half of the EU’s energy use, with almost three quarters of this coming from fossil fuels, mainly gas. Heat pump sales have slowed, the share of renewables is growing slowly and district heating systems need to quickly decarbonise by incorporating lower temperature renewable and waste heat sources. 

Specifics expected to be addressed include financial barriers, obstacles created by infrastructure planning and development, challenges to incentivise demand and simplifying access of consumers to affordable solutions. 

Energy security framework

The energy security crisis resulting from the Ukraine-Russia conflict has brought a new focus on energy security and following a call for action from multiple parties, a revision of the current EU regulatory framework has been initiated with a legislative proposal due by mid-2026.

Stable energy supplies are seen to be critical for economic resilience, continued access to affordable energy and avoiding extreme price volatility. Disruptions to energy supplies caused by geopolitical tensions, cyberattacks, deliberate attacks or extreme weather events threaten affordability. 

The new regulatory framework is intended to make the EU’s energy system more prepared, secure and resilient to current and future energy crises. Specific objectives include making the framework more operational – particularly in times of crises, ensuring cross-sector and cross-border cooperation. addressing emerging threats to energy security and ensuring diversification of energy supplies. 

Market integration

The completion of a genuine ‘energy union’ in Europe is considered to require a fully integrated energy market. This turn requires a cohesive governance framework that aligns national and EU-level objectives and ensures that decisions of cross-border and EU relevance are taken at the right level.

To this end, a white paper on deeper electricity market integration is due to be released in early 2026.

New rules on demand response also are envisaged for 2026

Energy highways

The ‘energy highways’ initiative to accelerate progress on eight energy infrastructure projects should get a boost with several short term action specifics proposed for early 2026, in addition to the various ongoing elements of support to these.

For the two Pyrenean crossings to better integrate the Iberian Peninsula with France across the Pyrenees, it is proposed to facilitate a joint political declaration at the next ministerial meeting of the High-Level Group South-West Europe, due in Q1 2026, with the objective of confirming the start of implementation for at least one of the projects and addressing the necessary internal grid reinforcements.

The meeting also is expected to help step up efforts and facilitate exchanges among member states on key technical, financial and de-risking aspects for the development of the southwest hydrogen corridor from Portugal to Germany.

For the ‘Great sea interconnector’ to connect Cyprus to continental Europe, the European Commission has committed to ongoing support in close cooperation with the Cyprus Council Presidency in 2026, including dedicated events and high level discussions.

For the Harmony link to strengthen power links with the Baltic states, the Commission aims to enhance regional cooperation and take stock at ministerial level during the next Baltic energy market interconnection high level meeting in 2026.

For the SouthH2 hydrogen corridor interconnecting Tunisia to Italy and beyond to Germany, the Commission intends to intensify regional dialogue in the relevant working groups in early 2026 to advance the initiative.