From green energy to intelligent infrastructure

Is the power grid the next strategic battleground?

Europe is expanding wind and solar power at record speed, but new, energy‑intensive consumers are already putting pressure on the system. A growing share of green energy is being lost unless we expand and optimize the existing power grid through smart solutions.

The green transition is accelerating across Europe. Siemens and other European players point to an electrification target of at least 35 percent by 2030 in order to meet the REPowerEU ambitions – a level that will place significantly higher demands on the overall power infrastructure. At the same time, plans for a massive expansion of offshore wind power, electrification of transport and industry, and rising demand from energy‑intensive data centers mean that the power grid is entering a new phase.

Already today, developments point to a key challenge: an increasing share of green energy is not being utilized. Calculations based on data from Energinet show that 18 percent of offshore wind production was lost during the summer half of 2025 because the power grid was unable to absorb it.

“Expanding renewable energy has been a major focus for many years, and that has been necessary,” says Andreea Balasiu, who leads our electrification and automation business in Denmark. “But without a corresponding upgrade of the physical infrastructure, we risk slowing down progress.”

According to her, pressure on the power grid is already evident in several parts of Europe, where capacity cannot keep pace with rapidly growing demand driven by new types of consumers.

“We are seeing significantly more inquiries from data centers. Many want to connect to the high‑voltage grid, and their electricity consumption is measured in megawatts. That changes the rules of the game,” she explains.

Andreea Balasiu, who leads our electrification and automation business in Denmark

Grid First – Power infrastructure must be prioritized

While the first phase of the green transition focused on increasing renewable energy generation, developments are now pointing toward a strategic shift. To realize the ambitions, it is crucial that infrastructure keeps up.

We operate according to the “Grid First” principle – power infrastructure must be prioritized as a prerequisite for the rest of the transition.

“We need the highways first – the energy highways, both large and small – otherwise we won’t fully benefit from investments in wind and solar,” says Andreea Balasiu.

At the same time, she calls for a stronger strategic focus on electrifying the entire value chain.

“We lack clear and more ambitious electrification targets from a political level – both at the European and national levels. It’s about setting a clear direction and ensuring that we’re not only talking about gigawatts of wind power, but also about how the power grid is actually expanded and utilized,” she says.

Consumers become essential assets

Expanding the power grid is a prerequisite for realizing the green transition. But according to us, it is not a matter of either‑or. While physical infrastructure must be expanded, the existing power grid also contains significant – and often untapped – potential that can be unlocked through digitalization and intelligent control.

In other words, we need to both build new infrastructure and think smarter about what we already have.

Using data, artificial intelligence, and so‑called digital twins, the power grid can be increasingly optimized and operated closer to its capacity limits – without necessarily requiring major new investments in cables and facilities. It is about creating better visibility into the system and being able to simulate and predict loads in real time.

This is already being implemented in practice: in Finland, Fingrid uses digital twins to test dynamic scenarios and identify potential bottlenecks at an early stage. In Norway, Elvia optimizes the utilization of grid capacity using data‑driven algorithms.

“We need to expand and modernize at the same time if good intentions are to be felt in practice. With digital solutions, we can gain much better insight into our power grids and use them far more efficiently,” Andreea Balasiu explains.

She also points out that future energy systems will increasingly be characterized by flexibility on the consumption side. New types of consumers – such as data centers, industrial facilities, and energy storage solutions – can play a more active role in balancing the power grid.

“If we start to see consumers as flexible assets rather than just loads, entirely new opportunities open up. They can help relieve pressure on the grid and create more stable operations.”

This includes the use of batteries and intelligent, dynamic control, where consumption is shifted over time. As a result, the energy system does not just become larger – but also smarter and more adaptive.

We have all the building blocks

For us, the conclusion is clear: if Europe is to succeed in its green ambitions, it requires a more coherent focus on the entire energy system. It’s not just about producing more renewable energy, but above all about ensuring that it can be distributed, used, and integrated efficiently across sectors.

“We have the building blocks: the technologies are in place and the starting position is strong – also in Denmark. But we need investments, regulation, and technology to move in the same direction,” says Andreea Balasiu.

According to her, the perspective extends beyond climate considerations. A resilient and intelligent power grid is also critical to Europe’s competitiveness, energy independence, and ability to attract new investments.

As a result, power infrastructure becomes not only a technical necessity – but a strategic prerequisite for the future of society and business.

April 2026