Energy Newsletter

In the first quarter of 2026, renewable energies exceed 50% of German electricity consumption for the first time – a milestone of the energy transition. Renewable energy production has increased from 63.6 GWh (Q1 2025) to 73.2 GWh. However, this success exacerbates grid bottlenecks and increases curtailment costs, which directly burden RWE, EON, EnBW, and Vattenfall.

German electricity prices stand at €86.80/MWh in May 2026, while France pays only €22.06/MWh – the main cause is the 60%+ increase in gas prices since the Iran war. Gas remains the price setter in the European electricity market despite the renewable energy boom, which exacerbates deindustrialization and higher consumer burdens.

The four transmission system operators (Amprion, TenneT, 50Hertz, TransnetBW) are building new high-voltage transmission lines: Ultranet by end of 2026, A-Nord 2027. The goal is to reduce redispatch costs and use French nuclear power more efficiently. Green energy producers should bear a greater share of grid expansion costs.

During high wind and solar production, German electricity prices fall into negative territory, driving curtailments and storage investments. Sodium-ion batteries and vehicle-to-grid solutions (BMW/EON from Feb 2026) become economically viable, but missing incentives brake scaling.

Energy Minister Katherina Reiche admitted on April 7, 2026, that Germany had become complacent about ambitious targets while energy prices exploded and deindustrialization followed. The energy transition strategy reveals target conflicts between climate protection, supply security, and economic viability.