Energy Newsletter

German electricity prices regularly fall below zero (down to -49.999 ct/kWh on May 1) because solar systems produce more power at midday than is consumed. The problem: negative prices do not relieve end customers, as grid charges and levies continue to apply. The Ministry of Economics calls for a rethink on subsidies for excess renewables.

Unlike the 2022 gas crisis, the current energy shock is primarily an oil price shock with impacts on fuel and air transport; the electricity market remains relatively stable. Germany cuts 2026 growth forecast from 1% to 0.5%, inflation rises to 2.7%. Geopolitical vulnerability of the EU energy system remains a structural risk.

While battery storage is booming, it cannot be operated due to lack of grid connections. Transmission system operators (TenneT, 50Hertz, Amprion, TransnetBW) launch new maturity assessment process on April 1, 2026, but await grid development plan (autumn 2026). CDU/SPD plan HVDC lines as overhead lines – implementation is delayed.

Companies like EnBW and Vattenfall compete for scarce port spaces, specialist ships, and skilled workers in the construction of mega wind turbines; EnBW plans battery storage in Philippsburg (construction begins summer 2026, commissioning end of 2027). Technological innovation (EQ-Piling by IQIP) accelerates only partially; supply chains remain a bottleneck.

Spiegel investigation reveals: Ministry of Economics under Katherina Reiche had energy companies RWE and EnBW prepare reports that favored gas power plants over battery storage in auctions. EnBW CEO acknowledges failure. Conflict of interest between energy transition goals and corporate lobbying discredits government policy.