Energy Innovation in 2026: 

What Global Trends Mean for Ireland and Horizon Europe

We are in a dynamic time for energy innovation. Today, the global markets for energy technologies such as batteries, wind turbines, electric vehicles and systems for industrial energy efficiency are worth trillions of Euros. Spending on energy represents as much as 10% of global GDP, so the outputs of research that can help boost energy supply, lower costs, and insulate us from external shocks, can be economically transformative. 

The recent publication of the second edition of the State of Energy Innovation Report by the International Energy Agency (IEA) is a timely spotlight on the technologies, policies and funders at the forefront of this process, and especially relevant as we enter the 2026-27 Work Programme for Horizon Europe’s Cluster 5 focusing on Climate, Energy, and Mobility.

The report, and the accompanying interactive dashboard, calls out some key insights and trends, including:

· Identifying over 150 significant energy innovation advancements in 2025, in areas such as solid-state air conditioning, perovskite solar, sodium-ion batteries and next-generation geothermal.

· Interrogating the latest available patent data (2023) to demonstrate how innovation intensive the energy sector is; one in ten patents globally is related to energy, which is more than for chemicals, pharmaceuticals or transport. Within this, it is notable that the share represented by energy storage is rising, reaching 40% of energy patenting in 2023.

· Reflecting uncertainty as the markets for some clean energy technologies weakened. The IEA’s renewables deployment forecast for 2030 was downgraded by 5% in 2025 in response to policy and regulatory changes.

The report also comes at a time when the context for energy innovation tilts towards competitiveness and security. The report includes the results of a survey of experts and practitioners, in which 80% of respondents placed energy security among the top three drivers of energy innovation in 2025, ahead of affordability, GHG emissions and national economic performance. Even as the drivers for energy innovation evolve, many policy priorities remain the same. In particular, they show the importance of public spending on energy R&D and early commercial projects, especially as private finance has become scarcer.  

How Horizon Europe 2026–27 Responds to Emerging Innovation Needs

The Horizon Europe Cluster 5 (Climate, Energy & Mobility) Work Programme for 2026–27 has the potential to form an important part of the EU’s response to the innovation gaps and opportunities identified by the IEA. Some keys areas of alignment include:

· Strengthening the green and digital transitions in a way that enhances Europe's strategic autonomy.

· Supporting the scaling up of next-generation clean energy technologies by funding large-scale, high-TRL   demonstration projects. 

· Accelerating domestic innovation and manufacturing in batteries, hydrogen, wind, solar, and storage         technologies, supporting the Net‑Zero Industry Act (NZIA) goals.

Irish companies and researchers can benefit if they can successfully position themselves to contribute towards these European priorities, especially through the over €2 billion of funding that will be available through Horizon Europe’s Cluster 5, as well as through national R&I pathways.

The Cluster 5 Work Programme for 2026-27 can be found here. 

An Opportunity to Engage: Funding Pathways for Irish Innovators

To support greater Irish uptake of opportunities in the field of energy innovation, the Sustainable Energy Authority of Ireland is organising the seminar “Accelerating Innovation: Explore Funding Opportunities for Energy Research and Innovation” on the 22nd April at the RDS in Dublin as part of the annual SEAI Energy Show. This event is targeted at a broad audience.  Attendees from SMEs, Industry, Researchers, and public sector organisations will get the latest updates on National and EU energy calls, and will hear from experts who will share practical advice around navigating the journey from an initial idea to funded projects.

If you are looking for partners, this could be a great opportunity to pitch your ideas and connect with potential collaborators for upcoming funding opportunities.

Register here to shape your organisation’s energy innovation journey!