A recent report by credit insurer Allianz Trade states that the rise of artificial intelligence, along with the increase in renewable energy, will transform Europe’s energy industry.
The Energy & Solar report highlights that AI may 'emerge as the key growth catalyst for the European energy industry thus far,’ driven by rising energy demand and the growth of renewable energy sources.
Nonetheless, the industry will encounter a ‘challenging balancing act’, supported by substantial investments in new capabilities and the upkeep of current assets, ongoing variations in electricity prices, and geopolitical uncertainties.
For instance, although wind and solar are reducing Europe's dependence on fossil fuel imports, the region continues to depend on other areas globally – particularly China – for batteries, solar panels, storage solutions, and other essential technologies.
“Today, renewable energies represent much more than merely a means for decarbonisation,” stated Milo Bogaerts, CEO of Allianz Trade for Germany, Austria, and Switzerland. “They are transforming into a tactical barrier against geopolitical disturbances and the unpredictability of fossil fuels.”
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The latest unrest in the Middle East has caused gas prices to rise once more. Nonetheless, the observation that the effect on European electricity markets was much less pronounced than in the 2022 energy crisis indicates that with each extra kilowatt-hour generated from wind and solar energy, Europe is now significantly more robust against sudden and drastic changes in energy prices.
For instance, the report highlighted that in Germany, renewable energy represented approximately 58% of overall electricity usage during the initial half of 2026, while net electricity imports decreased by over 85% compared to the previous year, reaching just above 1 terawatt-hour (TWh).
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Nevertheless, the expansion of Europe’s AI networks – featuring proposals for seven European AI gigafactories noted by Allianz Trade – might increase the need for any supplemental energy produced.
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According to Guillaume Dejean, an industry expert at Allianz Trade, this presents energy suppliers with opportunities for new industrial baseloads, extended power purchase agreements, and further revenue potential in the grid and storage areas.