The European Union is poised at a pivotal moment in its energy transition, with the next decade set to shape its economic trajectory amid evolving global dynamics. As the race for clean technologies accelerates and geopolitical tensions reshape market landscapes, the EU’s strategic approach to energy transition will be crucial for determining its industrial competitiveness and economic resilience.
During the recent PKEE Energy Day 2025 held in Brussels on October 14, over 350 European policymakers, industry experts, and stakeholders convened under the theme “Secure, competitive and clean: is Europe delivering on its energy promise?” The consensus was unequivocal: the energy transition must prioritize economic interests, rather than being solely driven by environmental goals.
The power sector: A cornerstone of industrial competitiveness
The future of competitiveness within Europe is closely tied to advancements in the power sector. According to Konrad Wojnarowski, Poland’s deputy minister of energy, without the successful reform of electricity generation and distribution, other critical sectors—including steel, chemicals, and digital technologies—will struggle to achieve necessary decarbonization. Wojnarowski asserted that electricity is “vital to development and competitiveness,” emphasizing the challenge of transforming Poland’s energy landscape while ensuring support for innovation and a sustainable pace of change.
Adapting to the demands of a renewables-based system
A shift to renewable energy extends beyond the mere increase of capacity; it necessitates a comprehensive redesign of electricity production, management, and consumption. Dariusz Marzec, president of the Polish Electricity Association (PKEE), referred to flexibility as “the Holy Grail of the power sector.” He highlighted the importance of generating energy in line with demand rather than in a constant flow, underlining the need for competitive pricing and a focus on stability for consumers. Marzec articulated that the mission at hand is not just about achieving climate objectives, but also about bolstering the economic landscape of Europe.
As Europe aims for climate neutrality by 2050, it faces the challenge of remaining globally competitive in the interim. Grzegorz Lot, CEO of TAURON Polska Energia, urged immediate action to adapt to rapidly advancing technologies, suggesting that policymakers cannot afford to wait until 2050 to implement necessary changes. He pointed to the anticipated decline in coal consumption and the pressing need for investment in proven technologies, particularly onshore wind.
In addition to technological adaptation, the stability of regulations and consumer engagement are vital components of a successful energy transition. Lot emphasized that a favorable regulatory environment is imperative to maintain competitiveness and that dynamic tariffs could encourage consumer flexibility. This approach would allow customers to adjust their energy consumption based on market conditions, ultimately leading to reduced costs.
Investment in renewable energy, modern gas units, and energy storage technologies is essential for ensuring stability and affordability in energy supply. Marek Lelątko, vice-president of Enea, noted that these investments are key to enhancing energy security and fostering economic growth while keeping energy prices manageable for consumers.
The energy sector is increasingly being recognized as a strategic cornerstone of Europe’s industrial future, comparable to critical sectors like semiconductors and defense. Marzec poignantly remarked, “The energy transition is not a choice — it is a necessity.” The choices made in the coming years will be instrumental in determining whether Europe can maintain its competitive edge and economic independence in a rapidly changing world.
Significant progress has been made, with the power sector contributing to a decline in EU emissions and achieving substantial reductions under the Emissions Trading System. By 2025, projections indicate that 72 percent of Europe’s electricity will be generated from low-carbon sources. However, as Marcin Laskowski, vice-president of PKEE, noted, the success of the EU’s economic transformation is inherently linked to the successful execution of the energy transition.
The recent gathering in Brussels underscored a collective commitment among high-profile speakers and industry leaders: the energy transition is an essential industrial endeavor. Its success hinges on coordinated actions between EU institutions, national governments, and the private sector, coupled with stable regulations and adequate financing.
Ultimately, Europe’s ability to thrive will depend on its capacity to view the power sector not merely as a cost, but as a critical foundation for sustained economic growth. The upcoming decade presents a unique opportunity, where strategic decisions will resonate across Europe’s economic landscape for years to come.