From ambition to pragmatism: how Southern Europe's energy transition is evolving

Energy leaders across Southern Europe are prioritizing resilient, affordable, and cleaner energy systems, shaping a transition that balances long-term ambitions with today's operational realities.

Southern Europe’s energy transition is entering a new phase. Following several years in which decarbonization dominated the energy agenda, energy leaders across the region are increasingly prioritizing a balance between energy security, affordability, and sustainability. The result is a transition whose long-term direction remains unchanged, but which is becoming more pragmatic in how it is pursued.

As the region faces rising electricity demand, geopolitical uncertainty, regulatory challenges, and growing pressure to strengthen energy security, decision-makers are adapting their strategies to reflect a more complex operating environment. 

The focus is increasingly on ensuring that the energy transition can be delivered in a reliable, resilient, and economically sustainable way. This means investing in the infrastructure and technologies, and enabling the policy frameworks needed to advance decarbonization while maintaining secure energy supplies and competitiveness. Rather than signaling a reduction in ambition, this pragmatic approach reflects a growing recognition that long-term success depends on balancing environmental goals with the practical realities of delivering energy systems that societies and economies can depend on.

What does a more pragmatic transition mean?

According to DNV’s Energy Industry Insights 2026 report, 81% of energy leaders in Southern Europe agree that the energy transition has become more pragmatic, with a greater focus on delivering secure, reliable, and cleaner energy. 

This shift reflects the realities facing the region. Rising electricity demand, geopolitical uncertainty, and regulatory challenges are influencing investment decisions and project timelines. Energy leaders are increasingly focused on solutions that can strengthen energy systems today while keeping long-term decarbonization ambitions on track. 

A pragmatic approach does not mean reducing ambition. Instead, it means recognizing that the pathway to a lower-carbon future must also maintain system reliability, strengthen resilience, support affordability, and enhance economic competitiveness. 

Balancing short-term energy security with long-term decarbonization

Energy security remains a major priority for the region. Nearly six in ten respondents (59%) say that investing in power grids is the best way to improve energy security. At the same time, 41% identify improving energy storage and battery capacity as a key measure, while 37% point to increasing renewable energy generation. 

These findings suggest that Southern Europe’s leaders do not see energy security and decarbonization as competing objectives. Instead, they view them as increasingly interconnected. Stronger grids, greater storage capacity, and more renewable generation can help build a cleaner and more electrified energy system while improving resilience and reducing exposure to external shocks. 

This perspective is especially significant given the challenges facing the region. Political risk is now seen as the biggest barrier to growth by 41% of respondents, while 28% cite regulations and 27% point to permitting processes for new projects as key constraints. 

Oil and gas remain important, but the direction of travel is unchanged

One of the clearest messages from the survey is that Southern Europe’s energy leaders are taking a balanced view of the role of oil and gas. The sector continues to be regarded as vital in the short to medium term, with 77% of respondents saying it will be critical to energy security over the next decade and 65% believing it will remain important for maintaining energy affordability. 

However, this does not signal a retreat from energy transition goals. The findings point to a broad recognition that long-term energy security will depend on a cleaner, more electrified energy system. Rather than choosing between conventional and low-carbon energy sources, leaders are focused on managing the transition in a way that maintains stability while enabling decarbonization. 

This pragmatic stance may also help explain why only 37% of leaders in Southern Europe believe the pace of the energy transition is accelerating, compared with 52% globally. The region appears to be taking a more measured approach to the transition, with greater emphasis on resilience, reliability, and long-term deliverability.

Renewables and storage continue to attract investment

Even as leaders focus on reliability and security, investment appetite for established low-carbon technologies remains resilient. Solar photovoltaic (PV) continues to be a major opportunity area, with 35% of respondents planning to increase investment or focus on solar PV. In addition, 31% say they will invest in solar-plus-storage solutions. 

These technologies are attractive because they support both decarbonization and energy security objectives. Solar generation can help reduce emissions and increase domestic energy production, while storage improves flexibility and strengthens grid resilience. Together, they can support a more secure and increasingly electrified energy future. 

Looking ahead

Southern Europe’s energy leaders are adapting to a more complex operating environment. Political uncertainty, regulatory challenges, and growing electricity demand are reshaping priorities. Yet the survey findings suggest that the region remains committed to the energy transition.

The difference is that success is increasingly being defined by outcomes as much as ambition. Secure, reliable, affordable, and cleaner energy systems are becoming the foundation of transition strategies. The findings suggest that pragmatism is increasingly viewed not as a compromise, but as the most effective route to achieving long-term decarbonization and energy security objectives.