| Blog | The Evolution of Energy Consumption in Europe and the United States: Trends, Drivers and Future Scenarios
In a global environment shaped by the energy transition, accelerated digitalisation and the increasing electrification of consumption, understanding the dynamics of energy demand has become essential for governments, corporations and investors.
This article provides a structured overview of the main forecasts for energy consumption in Europe and the United States over the coming years, analysing growth drivers, structural trends and the implications for the energy mix and infrastructure.
With regard to the European market, the most reliable assessments are provided by institutional bodies such as the EEA, IEA and EIA (for structural comparisons), as well as economic analyses from sources such as Goldman Sachs Research, which offer a consistent and in-depth view of the continent’s energy evolution.
The Trends and Projections in Europe 2025 report from the European Environment Agency (EEA) represents the most up-to-date source on the subject, including data on energy consumption for 2023–2024 and projected trajectories towards the 2030 National Energy and Climate Plan (NECP) targets.
After fifteen years of decline, electricity demand in Europe is rising again. According to Goldman Sachs Research, the continent is entering a new phase of expansion:
Key growth drivers include:
The energy transition requires substantial investment:
A more renewable-based system is also a more variable one, requiring deep modernisation of electricity grids, many of which are now 40–50 years old.
In the United States, demand growth is even more pronounced. In the short term, projections from the Energy Information Administration (EIA) indicate rising consumption reaching record levels.
A relevant political factor is that the Trump administration currently appears less supportive of further renewable expansion, introducing some uncertainty around medium- to long-term trajectories.
The Annual Energy Outlook 2025, based on the NEMS model, considers only policies in force up to 2024 and outlines multiple scenarios (reference case, high/low renewables, high/low demand).
Across all scenarios:
The global picture outlined by the IEA confirms an acceleration in worldwide demand, driven primarily by:
Renewable energy has now become the main driver of growth in electricity generation, reinforcing convergence between Europe and the United States towards a more electricity-intensive economic model.
To meet this rising demand, significant investment will be required from the utilities sector. Major players have already initiated substantial investment plans, both in generation and distribution, particularly in Europe.
Europe is undergoing the most significant structural transformation of its energy sector since liberalisation.
Demand growth — driven by digitalisation, energy-intensive data centres, electric mobility and electric heating — is accelerating at a pace that is placing pressure on both generation capacity and transmission and distribution networks.
At the same time, EU climate targets require a profound shift in the generation mix towards clean energy sources.
In this context, leading European utilities — RWE, Engie, Iberdrola and Enel — are responding with investment plans that will reshape the future of energy in the continent.
Never before have networks and generation been so interconnected in determining the security, stability and sustainability of the power system.
RWE is at the centre of a structural transformation affecting both generation and infrastructure.
In 2025 alone, the company brought 2.5 GW of new capacity online, bringing its operational portfolio to 38.7 GW, spanning renewables, storage and flexible generation.
On the infrastructure side, RWE strengthens the European grid through its stake in Amprion, one of Germany’s main transmission system operators.
Amprion’s expansion will be supported by a joint venture with Apollo Global Management, injecting €3.2 billion to develop the German transmission network.
In summary: RWE is expanding renewable capacity while reinforcing one of Europe’s most critical transmission systems.
Engie has announced investments of €21–24 billion between 2025 and 2027, allocating 75% of this capital to renewables, batteries and grid infrastructure.
The objective is to build a highly integrated industrial model capable of supporting increasing electrification with cleaner generation.
On the generation side, Engie aims to reach 95 GW of renewable and storage capacity by 2030, consolidating its position as a key player in Europe’s energy transition.
In summary: Engie combines investments in generation and infrastructure to create a scalable and coherent energy ecosystem.
No other European operator is investing as heavily in networks as Iberdrola.
Its 2025–2028 plan allocates €37 billion to transmission and distribution infrastructure, focusing on the UK, the United States, Spain and Brazil, with the goal of increasing its Regulated Asset Base from €49 billion to €70 billion (+40%).
On the generation side, Iberdrola is pursuing a €150 billion development plan for 2024–2030, including €12 billion in 2025 alone, targeting 95 GW of renewable capacity by 2030.
In summary: Iberdrola is the most aggressive European player in both grid investment and renewable expansion.
Enel’s 2026–2028 strategic plan includes €53 billion in investments, divided between:
These investments are expected to increase the Regulated Asset Base to €58 billion by 2028 and bring installed renewable capacity above 80 GW.
In summary: Enel combines growth in clean generation with the digitalisation and modernisation of distribution networks.
Over the next five years, Europe and the United States will follow similar trajectories, albeit at different speeds:
This is a complex landscape, where public policy, strategic investment and innovation will play a decisive role in ensuring the security and sustainability of energy systems over the coming decade.
In both Europe and the United States, electricity demand is growing at rates not seen in the past decade.
Advanced economies are entering a new phase in which electricity becomes the core driver of growth — from mobility to industry, from AI to climate control.
Strategies may differ, but the destination is the same: a larger, more digital and more electrified energy system.
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