Powering Up Europe: EU Electrification Plan supports our thesis

Research evidence excerpt

Powering Up Europe: EU Electrification Plan supports our thesis

Equity Research

20 July 2026 | 6:11AM CEST

New and higher electrification targets by the EU. On July 17, The European Alberto Gandolfi

+39(02)8022-0157 |

Commission published its strategy on how to accelerate the electrification of energy alberto.gandolfi@gs.com

Goldman Sachs Bank Europe SE - Milan

demand, to reach a 46% share of final energy consumption by 2040. This compares branch

with around 23% currently. This plan is likely to bring further momentum to the Ajay Patel

roll-out of datacenters, and it may accelerate the adoption rates for heat-pumps and +44(20)7552-1168Goldman Sachs International| ajay.patel@gs.com

electric vehicles. This appears to support our bullish views on power demand growth; Mafalda Pombeiro

we recently presented a hyper-adoption scenario on electrification and datacenters, +44(20)7552-9425mafalda.pombeiro@gs.com|

which appears aligned with the targets just expressed by the EU. On this basis, we Goldman Sachs International

Khenwarwould see power demand in Europe growing by 4-5% per annum, starting in 2029. Dhwani | +1(332)245-7724

dhwani.khenwar@gs.com

Electrification and AI to drive a generational earnings super-cycle. A growing Goldman Sachs India SPL

Lavizanielectricity infrastructure deficit is likely to support higher returns across Renewables Lawrence | +44(20)7051-1060

and FlexGen, while driving increased investment requirements throughout the lawrence.lavizani@gs.com Goldman Sachs International

electricity value chain – including power grids, which are currently 40 years old. Over

the coming ten years, we estimate electrification will require €2.2-3.5 trn of

investments, a meaningful acceleration vs the past ten years. For the main