Energy Newsletter

The federal government has assumed a 25.1% stake in TenneT via KfW and thus controls three of the four transmission system operators together with existing stakes in 50Hertz and TransnetBW. This state-backed securitization of electricity highways is essential for the expansion of renewables and Germany's energy supply security. Only Amprion remains without state stakes.

In the first half of 2026, renewable energies reached 58-61.8% of net electricity generation in Germany for the first time, and Germany became a net exporter again. The electricity market is thereby increasingly decoupling from gas prices, which demonstrates economic independence from fossil energy sources. The expansion pace is set to double to 22 GW/year from 2026.

A record heat wave in June 2026 led to unprecedented electricity prices in Germany, Belgium, and the Netherlands with price peaks approaching EUR 500/MWh. Electricity bills in Germany alone rose by EUR 371 million in a single week. The crisis underscores the need for storage expansion and intelligent load distribution.

EnBW, Elements Green, and VPI are expanding large-scale battery storage across Germany; production costs are falling rapidly and driving expansion. With 2.5 GWh+ of new storage, price peaks are buffered and the temporal decoupling between wind/solar production and consumption is bridged. This is central to stability with high renewable shares.

For the first time, a party is calling for the abolition of Germany's uniform nationwide electricity price in favor of regional electricity price zones (electricity price regionalization). This is intended to address grid congestion and make investments in underserved regions more attractive. The topic divides the energy industry, as it affects distribution and large consumers very differently.