European integration in energy policy has evolved incrementally and materialises in a complex governance architecture. The proposed paper examines this evolution for the areas of renewables and energy efficiency. It describes how the governance mix combines coercion, coordination and competition through mechanisms of layering. Over the past few years European member states have committed themselves to binding targets on renewables and energy efficiency, and thus have ceased some of their prerogatives in deciding on their national energy mix. Beyond aggregate targets, key policy choices are left to processes of intergovernmental coordination and competition where national governments take decisions about policy substance and instruments. Coordination and competition also involve private actors where policy innovation is being delegated to industry in areas such as energy-using products. While the official discourse emphasises synergies between policy objectives and governance modes, the paper points to a lack of cohesion in governance and policy innovation.