Energy Newsletter

German electricity prices regularly fall below zero euros, reaching -49.999 cents/kWh on May 1, 2026. Massive solar capacity (100 GW installed) leads to overproduction during weak demand, especially on public holidays. The energy transition thus creates a price paradox: abundance instead of scarcity, which calls into question subsidy logic.

Geopolitical tensions in the Iran/Gulf conflict fundamentally destabilize Europe's energy supply. Electricity prices in Italy/Germany rise to 120-150 €/MWh, while gas prices remain TTF-coupled. The EU loses 28+ billion euros; Germany cuts 2026 growth forecast from 1% to 0.5%.

Solar power curtailments rise by 97%, redispatch costs exploded in 2025. Bottlenecks shift from transmission grids to distribution grids; the four TSOs (TenneT, 50Hertz, Amprion, TransnetBW) cannot handle connection requests. New 13-GW transmission lines only go into operation in 2028; 6-year delays from underground cable decisions burden grid charges.

All four TSOs introduce a maturity level procedure for the first time starting April 1, 2026, to prioritize grid connections based on development stage (instead of first-come-first-served basis). In parallel, pilot projects begin for heat pump stabilization (Viflex) and power-to-heat (50Hertz/Berlin 120 MW). These measures address grid congestion through flexible loads rather than expansion alone.

EnBW and Vattenfall test the first EQ-piling technology at large scale at Dreekant wind farm with IQIP. Technology massively reduces monopile installation times and costs. EnBW simultaneously invests in 600-MW battery storage Philippsburg (construction starts summer 2026, commissioning 2027) to solve grid congestion through storage.