The chapter explores the evolving political economy of energy, focusing on how market dynamics and political decisions shape energy relations globally, with a particular emphasis on the European context. It discusses the interplay between traditional fossil fuels and renewable energy sources, examining how geopolitical and economic factors influence energy production, distribution, and consumption. The chapter also addresses the implications of energy transitions, the growing role of renewable energy, and the strategic challenges posed by the changing energy landscape, especially in light of conflicts like the Russia-Ukraine war. The role of state actors, international organizations, and private stakeholders in navigating energy security, interdependence, and market regulations is highlighted.