“After 15 years of declining demand, Europe’s appetite for power is set to increase again, driven by widespread electrification as well as new industries such as electric vehicles and data centers. Goldman Sachs Research estimates that around $3.5 trillion (€3 trillion) worth of investment in the power sector will be required over the next 10 years to reduce the risk of a European power crisis. A large part of the investment will go into capital expenditures to modernize aging power grids and improve generation capacity. “This scenario will drive significant growth across the electricity value chain, thanks to rising investments and higher margins,” says Alberto Gandolfi, head of European utilities research in Goldman Sachs Research.The forecast for Europe’s power sector: Between 2008 and 2024, power demand in Europe dropped by around 7% as a result of a series of upheavals, from the financial crisis in 2008 to the Covid pandemic. Industrial consumption has declined the most since 1990, down nearly 8% cumulatively. But now Europe’s power demand is on an uptick. Our analysts forecast power demand will grow 1.5-2% per year from 2026.”
Morten W. Langer
