Energy Newsletter

German electricity prices will decrease by 6.7% in 2026 while the share of renewable energy rises to 55%. RWE, Vattenfall and EnBW are planning massive offshore wind expansion projects in the North and Baltic Seas. Industrial subsidies are launching in parallel with the energy transition.

All four German transmission system operators (50Hertz, Amprion, TenneT, TransnetBW) have introduced a new allocation procedure for grid connections as of April 2026 to manage bottlenecks in data centers and industrial projects. The procedure prioritizes projects based on maturity level rather than order of application.

RWE CEO Markus Krebber is pushing for the acquisition of Amprion, the only major transmission system operator without state participation. While Tennet, 50Hertz and TransnetBW are already publicly owned, RWE is positioning itself as a private alternative in grid infrastructure.

Research team comprising KIT, Siemens Energy and all four transmission system operators is developing superconducting current limiters to stabilize the high-voltage grid. The project aims to reduce grid outage risks with high wind and solar penetration.

Germany generated more electricity from wind and solar than any other EU country in 2025, yet maintains the highest electricity prices in Europe because the merit-order system ties prices to volatile gas costs. The UK is planning to decouple from the gas-electricity price link in April 2026.