Innovation in the energy sector is particularly important in the current economic climate. An ambitious European innovation strategy, aligned with the EU’s broader energy and climate goals, is critical to achieving the EU’s overall policy objectives and targets. In addition, a solid EU innovation policy offers real opportunity to strengthen the medium and long-term potential of the economy and is one of the keys to putting countries back on a path to sustainable – and smarter – growth. Major investment decisions of radical strategic importance need to be taken in the coming years and innovation in the power sector is at the very heart of the transition that will lead us to a low-carbon economy, reconciling continued growth with increasing environmental concerns.