Energy Newsletter

Soaring energy prices through geopolitical conflicts force the federal government to drastically reduce the 2026 growth forecast from 1% to 0.5%. Inflation rises to 2.7%, while electricity prices in Germany reach €120–150/MWh. The energy shock structurally threatens Europe's largest economy.

Renewable energies cover more than half of German electricity consumption for the first time – an increase of 2.3 percentage points compared to the previous year to 53–54.5%. Despite the energy crisis, the energy transition shows structural successes, but leads to negative electricity prices and curtailment problems. Battery storage and grid expansion become bottlenecks.

Despite 53% renewable energy, gas remains the price setter: In Germany, gas prices influence 40% of electricity prices and 50–60% of gas prices directly. Geopolitical dependence on the Gulf conflict leads to €120–150/MWh in Germany vs. €60–80/MWh in France. Structural vulnerability ensures high energy costs long-term.

With €6.5 billion in funding, transmission system operators (TenneT, 50Hertz, Amprion, TransnetBW) reduce their charges in 2026. Publicly unclear whether relief is passed on to households – consumers criticize lack of transparency and unequal regional burdens (Bavaria/Baden-Württemberg due to years of grid expansion blockade). Trust in pass-through is low.

Amprion accelerates HVDC projects Ultranet (completion end of 2026) and A-Nord (start 2027) to relieve bottlenecks between wind regions and consumption centers. Overhead line strategy reduces costs, but grid development plan not until autumn 2026 – delays in bottleneck solutions remain. Redispatch costs stay high.