North America: innovation in digital intelligence and grid resilience North America’s electricity growth is accelerating, supported by evolving market structures and price signals that reward flexibility and efficiency. In 2024, US non-fossil generation rose with 50 GW of new solar capacity.10 The US Department of Energy is also investing in small modular reactors (SMRs).11 In Mexico, clean energy reached 25% of total generation in 2024.12 Canada’s largely decarbonized system, anchored by hydropower and nuclear, continues to advance climate goals through national carbon pricing.13 Ageing grid infrastructure and limited integration capacity remain major constraints.14 The US leads global grid and storage investment15 – yet expansion faces planning and permitting bottlenecks, while extreme weather continues to test system resilience.16,17 In Mexico, drought has pushed hydropower to a two-decade low. 18 Rapid growth in data centres – expected to reach between 6.7% and 12% of total US electricity use by 202819 – and rising industrial demand are outpacing infrastructure readiness, making grid access, speed and power costs decisive in siting decisions. Innovation is increasingly centred on digital grid intelligence. Utilities are deploying AI-driven forecasting, dynamic line rating and digital twins to optimize capacity and anticipate disruption. Satellite monitoring strengthens vegetation management and wildfire preparedness. Dynamic line-rating pilots in the Midwest show how these tools can expand transmission without major upgrades. Heat reuse technologies in modular data centres are emerging business model innovations. A recent RMI study shows that virtual power plants (VPPs) – aggregating batteries, EVs and smart thermostats – could meet over 20% of US peak demand by 2030.20 Together, these advances are shifting North America’s ageing network towards a more adaptive, data-driven system able to absorb climate and demand shocks. Looking ahead, AI-enabled grid management, data centre integration and industrial heat reuse are likely to underpin more digital, self- balancing power systems. Europe: innovation for flexibility and competitiveness Europe has one of the world’s cleanest power systems, supported by interconnections, carbon pricing and coordinated policy. Russia’s invasion of Ukraine accelerated fossil fuel diversification and investment in renewables and efficiency. North Sea offshore wind now accounts for 35% of global installations.21 Europe’s investment in energy efficiency and end use in 2025 is among the highest globally.22 Regulatory reforms aim to streamline permitting, ease interconnections and update pricing, although progress remains slow. The EU’s updated market design seeks to improve resilience and lower prices by strengthening long-term contracts, increasing transparency and rewarding flexibility.23 Renewable growth is creating grid-balancing and pricing challenges, as generation and demand increasingly diverge. Congestion-driven price gaps between Southern and Northern Europe have widened, while curtailment and negative-price hours are rising, especially in Germany, the UK and Ireland.24 High energy costs in Europe – two to five times higher than in the US or China – remain a major concern and faster electrification is essential for competitiveness and climate goals.25 Addressing these pressures requires innovation in AI and GenAI, data foundations, market design, regulation and finance. Smart pricing, AI- enabled grid management and flexible tariffs can narrow the electricity-gas cost gap. Incentives, tax measures and simplified funding access can attract private capital, especially for small and medium enterprises (SMEs). Digitalization, predictive analytics and advanced applications such as digital twins can optimize industrial electricity use and reduce waste. Innovation efforts now centre on flexibility, market integration and industrial competitiveness. VPPs,26 vehicle-to-grid solutions, hybrid renewable storage systems and behind-the-meter storage enhance reliability, resource use and local flexibility. Market and regulatory tools direct investment where it delivers the greatest impact. Together, these innovations are shifting Europe towards system optimization – with greater flexibility, stronger cross-border coordination and deeper industrial electrification to reinforce competitiveness and maintain the continent’s role as a global benchmark for integrated clean energy systems. China: innovation for system integration under the dual carbon goals China’s central role in global clean power growth is driven by its electrification push for energy security and its dual carbon goals of peaking emissions before 2030 and reaching carbon neutrality by 2060. Since 2019, China has accounted for half of all worldwide installations of solar panels, 60% of electric vehicle sales and two-thirds of the growth in global electricity demand.27 China’s investment in renewables was the highest globally in 202528 and its grid investment in 2024 accounted for about one-fifth of global spending.29 The 15th Five-Year Plan targets non-fossil fuels at roughly 25% of primary energy by 2030, with wind and solar capacity above 1,200 GW and 100 GW of storage planned for 2025-2027.30,31 In provinces where renewable penetration exceeds 60%, challenges include frequency stability, voltage The US leads global grid and storage investment – yet expansion faces planning and permitting bottlenecks, while extreme weather continues to test system resilience. High energy costs in Europe – two to five times higher than in the US or China – remain a major concern and faster electrification is essential for competitiveness and climate goals. In China, ultra-high-voltage transmission, advanced power electronics, digital grid management and AI-based diagnostics support rapid renewable deployment. Electricity Reinvented: How Innovation is Transforming the Future of Power Systems 10

Electricity Reinvented 2026