Energy Newsletter

German industrial electricity prices will be at 19–20 ct/kWh in 2026, while the USA pays 7–8 ct/kWh and China 8 ct/kWh. This competitive disadvantage is driving major corporations like BASF and VW to relocate abroad. The energy transition is intensifying Germany's deindustrialization despite 57.5% renewable electricity generation.

Germany will become a shortage economy in 2026: In Hamburg, electricity connections are being allocated for the first time because the transmission networks cannot keep pace with the energy transition. Despite record expansion (50Hertz €20 billion, TenneT record investments), critical north-south transmission lines remain a bottleneck.

The EU Commission approves KfW's entry into TenneT with 25.1%. The federal government thereby secures control over Germany's critical electricity infrastructure to manage grid bottlenecks and wind power transport from north to south. In parallel, all 4 transmission system operators (50Hertz, Amprion, TenneT, TransNetBW) are investing a combined €532 billion since 2010.

2026 will be the breakthrough year for battery storage: New regulations eliminate the grid fee exemption, wholesale prices fall to minus €500/MWh during overproduction periods. Battery storage, e-mobility, and dynamic tariffs become the central response to periods of low wind and solar generation and grid stability.

Germany's renewable electricity record (57.5%, wind 32.6%) fails against reality: During periods of low wind and solar in winter 2026, old coal plants must be ramped up, gas continues to cover 16.3%. Reliability depends on grid expansion, storage, and flexible demand – not on green power ideology.