Energy Newsletter

German gas imports have cost five times more since the expiration of Russian long-term contracts (€12/MWh in 2020 vs. significantly higher today), with supply shifting to Norway and LNG. This heavily burdens industry and households and threatens economic competitiveness. Geopolitical dependence on energy imports remains a structural risk.

Germany has the highest electricity prices in Europe at €0.38-0.39/kWh (France €0.26, Spain €0.25), despite 70% renewable share in July 2026. Causes include grid expansion costs, redispatch expenses, and missing nuclear power, which is driving industry away. Energy transition costs burden consumers and competitiveness.

Bundesnetzagentur is making comprehensive preparations for multi-day power shortages; companies will need to reduce production. Four transmission system operators (Amprion, TenneT, 50Hertz, TransnetBW) were subsidized with €6.5 billion in 2026 but show supply security deficits from 2028 onwards. Planning uncertainty threatens supply stability.

RWE completes acquisition of additional shares in transmission system operator Amprion and now controls 55%; Amprion warns of declining supply security standards from 2028 onwards. The Ultranet project (380 kV) is intended to improve north-south power flow but is still under construction. Corporate interlocking and grid expansion delays are structural supply risks.

Germany achieves 70% renewable electricity share (July 2026), with PV feed-in of 9.2 TWh in July (record); despite this, 299 hours of negative electricity prices occur (2025: 389 hours). Overcapacity in wind and solar leads to curtailment and grid stability challenges. Energy transition asymmetry between supply and demand flexibility remains unsolved.