Energy Newsletter

Germany experiences extreme price swings due to overcapacity in PV and wind; electricity prices sometimes fall into negative territory, while peak load times cause bottlenecks. The rampant expansion pace (22 GW/year from 2026 onwards) has technically outpaced grid infrastructure. Consequence: Massive market volatility and uneconomicality for storage and backup infrastructure.

Geopolitical tensions in the Middle East have driven crude oil and gas prices up; Germany reduces 2026 growth forecast from 1.0% to 0.5%. Electricity prices in Germany exceed €120–150/MWh, while gas dependency in electricity pricing remains a structural risk. €28 billion cost burden for Europe, inflation forecast rises to 2.7–2.8%.

Four transmission system operators (TenneT, 50Hertz, Amprion, TransnetBW) have introduced new maturity procedures as of April 1, 2026, but are waiting for the network development plan announced for fall 2026. Battery and storage projects are not permitted to connect to the grid; Union/SPD dispute over overhead line priority delays HVDC expansion targets. Consequence: Massive investment uncertainty for renewable energy projects.

EnBW CEO admits failure in gas lobbying for Minister Reiche; investigations show how the Ministry of Economics ordered proposals from RWE and EnBW that systematically favor gas power plants over battery storage. Political influence contradicts official energy transition goals and intensifies trust crisis in the industry.

EnBW, Vattenfall, RWE, and Ørsted are reaching limits in port capacity, specialized vessel availability, and skilled workers; EQ-Piling innovations (EnBW/Vattenfall/IQIP) are to be tested for the first time in 2026. Competition for limited infrastructure slows the expansion necessary for the energy transition.