Energy Newsletter

Spot gas prices in Germany have risen above €60/MWh – approximately six times higher than in the USA. The crisis is being exacerbated by geopolitical tensions in the Middle East (Strait of Hormuz) and low European gas reserves. Goldman Sachs warns of possible 130% price spikes in case of prolonged supply disruptions.

Federal Economics Minister Reiche was head of E.ON subsidiary Westenergie until April; planned grid package tightening corresponds strikingly to E.ON's demands. Critics see suspicion of corruption and loss of trust among energy cooperatives and project developers, threatening construction blockades.

TenneT is investing a record €10 billion in 2025 for power grid expansion; major transmission lines such as Ultranet are to be completed by 2026. In parallel, grid technology experts report frequency drops below 50 Hz and critical capacity bottlenecks that signal stability risks.

Germany's self-sufficiency with renewables stands at only 2.7% of the previous year in 2026; wind expansion is weak despite record solar installations. Critics warn: electrification strategy is failing due to volatile prices, lack of grid flexibility, and storage capacity.

The Federal Cartel Office finds that RWE, EnBW, and Leag have significant market power concentration from 2026 onward. This endangers competition in the electricity market and could lead to price-fixing or grid expansion delays – particularly critical given structural expansion needs.