Baltic Energy Perspectives 2026
Setting the Context for Regional Collaboration
The Baltic Sea region stands at a pivotal moment in its energy transition. Accounting for more than one-third of the European Union’s energy consumption and emissions, the region has the potential to become a major driver of Europe’s decarbonization, competitiveness, and energy security agenda. Yet despite strong renewable resources and growing investment ambitions, the Baltic still lags behind the North Sea in offshore wind deployment, carbon storage development, and cross-border energy infrastructure.
Baltic Energy Perspectives 2026, prepared by S&P Global Energy in cooperation with ORLEN, explores how stronger regional cooperation can unlock this potential and accelerate the delivery of strategic energy projects across the Baltic Sea basin.
Key insights from the report
- The Baltic region matters for Europe. Baltic Sea countries represent approximately 35% of EU energy consumption and 37% of EU emissions, making their energy transition critical for the continent’s climate and competitiveness goals.
- Offshore wind is poised for rapid growth. Generation is expected to increase from 36 TWh in 2025 to 167 TWh by 2040, with Poland emerging as one of the region’s key growth markets. However, the current project pipeline remains significantly below regional ambitions.
- Energy security remains a priority. Following the end of Russian pipeline gas supplies, Baltic countries have successfully diversified imports through LNG infrastructure and strengthened regional interconnections, reshaping energy flows across the region.
- Hydrogen cooperation could create major cost advantages. Finland and Sweden are expected to become some of Europe’s most competitive renewable hydrogen producers, creating opportunities for cross-border infrastructure and trade.
- CCUS requires a regional approach. Shared CO₂ transport and storage infrastructure could help decarbonize hard-to-abate industries while preserving industrial competitiveness and supporting new value chains across the Baltic Sea region.