Energy Newsletter

In the first half of 2026, renewable energies reached over 57-58% of German electricity consumption for the first time, reaching 70.7% in June. This leads to frequent negative electricity prices and increased curtailment (+20% to 1,463 GWh), creating new storage and flexibility challenges. The decoupling of gas prices combined with high volatility forces grid operators to implement new security mechanisms.

Germany pays €0.38/kWh (38 ct) for households, while France costs €0.26 and Spain €0.25 – industrial electricity costs are even higher. McKinsey warns of competitive disadvantage for Germany as an industrial location due to energy transition costs. E.ON CEO Birnbaum calls for course correction in electricity market design and grid expansion financing.

Germany currently pays approximately €60/MWh for imported gas instead of previously €12/MWh under Russian long-term contracts – five times the cost. Replacement by Norwegian pipelines and new LNG contracts (Canada, Australia) leads to structurally higher energy costs and threatens industrial competitiveness. Energy prices are now a geopolitical security risk.

Germany imported only 1.25 TWh of electricity in H1 2026 (vs. 9.6 TWh H1 2025) – a decline of 87% due to solar records (9.2+ TWh July) and wind power. This reduces external dependencies but intensifies infrastructure bottlenecks in north-south transport (Ultranet, Amprion expansion). Grid stability requires massive investments in transmission networks and storage.

The federal government has acquired stakes in TenneT (25.1%), 50Hertz (20%), and TransnetBW (24.95%), with only Amprion remaining in private hands (RWE involvement). Amprion warns of grid bottlenecks and demands slowdown of coal phase-out; is secretly planning security platform against blackout scenarios. This signals state control over electricity highways as critical infrastructure.